Bank of America gave an update on the Real Estate Investment Trust, or REIT, sector early last week…
The growth in office space will remain largely slow for the remainder of this year and possibly into next because people simply like working from home, according to analysts. And I must say, BofA has some great analysts.
But some commercial spaces like data centers, self storage and grocery stores are starting to recover, possibly faster than originally expected.
This is important for REITs because for the most part, they’ve been lumped into one sector. But the reality is there are major variations to each of these REITs, and it’s only fair to look at underlying business models instead of throwing the baby out with the bathwater every time we hear “REIT.”
They’re not all doing the same thing, folks.
I’m keeping a close eye on the REIT sector, and I’m starting to notice a lot of trends developing in select sub-sectors that BofA touched on.
There are three REITs to watch closely that are poised for upside gains over the next few quarters… especially with the economy opening back up and the world getting ready for normalcy once again.
And I can’t wait for normalcy!
The first REIT to watch closely this summer is Extra Space Storage Inc. (NYSE: EXR).
It’s a fully integrated, self-administered and self-managed REIT. And as you’ve probably guessed by now, the company manages and operates self-storage properties, which comprise millions of square feet of rentable storage space.
That’s its primary business model!
And over the past year, they haven’t been doing too shabby for a boring self-storage business. The one-year return on this stock is 40.22%, and it currently has eight strong buy recommendations.
I have a price target of about $160 per share over the next 12 weeks, assuming EXR’s price continues to exhibit strength and the overall sector remains bullish.
But there’s even more where that came from…
I have two more REITs I want you to watch closely, so check out my short video below to get both of the tickers. And feel free to leave your thoughts on them or any other REITs you’re currently watching in the comments section.
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