Steve Brown, REITs have made a big comeback in the last two weeks. Many people believe that the Fed is on the sidelines. The IYR, which is the ETF that tracks REITs, has seen a 6% increase in the past two weeks. Now the question is, will there be another rate hike this year? As we have that conversation, REITs have become more attractive and their fundamentals are strong. One rate that is recommended is the American Century real estate fund, particularly Kymco. Kymco owns a lot of retail properties, specifically shopping centers instead of regional malls. They have limited exposure to struggling anchor tenants like Nordstrom, Sears, Kmart, and Macy's. Kymco's focus on community shopping centers, which have seen rising occupancy rates in recent years, makes them a good investment. In 2016, the middle 80% of the country is predicted to be the big winner due to lower gas prices. Store Capital is another bullish investment, with a 7% increase year-to-date. They specialize in the sale-leaseback business, investing in leased properties and focusing on credit underwriting skills. Finally, Equinox is a data center REIT that pays a dividend of 2.3%. They are a growth-oriented company, reinvesting in data centers and towers. They are expected to benefit from the growing demand for data and cloud computing.
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