Are REITs a good hedge against inflation?



Are REITs a good hedge against inflation?

To qualify as a REIT, the company must adhere to rules that include the composition of its assets, the source and distribution of income, number of shareholders and concentration of shares, and more. Like direct real estate investments, REITs may have the potential to be attractive hedges against inflation.

How do you hedge against inflation in real estate?

Consider Real Estate Real property often acts as a good inflation hedge, One of the easiest ways to get exposure is through real estate investment trusts (REITs), which own portfolios of commercial, residential, and industrial properties. Providing income through rents and leases, they often pay higher yields than bonds.

Are commodities a good hedge against inflation?

Commodities and inflation have a unique relationship, where commodities are an indicator of inflation to come; as the price of a commodity rises, so does the price of the products that the commodity is used to produce. Here are some of the top ways to hedge against inflation: 1. Gold Gold has often been considered a hedge against inflation.

Should you invest in Brookfield REIT to beat inflation?

Recently Brookfield REIT, which has a little more than US$2 billion in gross assets, has been boosting its allocation to real estate credit to counter inflation. Vaughan says the fund can be responsive to economic challenges because of its relatively small size compared with funds that are US$20 billion or more.