Real Estate Investor Magazine South Africa November 2015 | Page 47

In an environment where question marks loom about the sustainability of corporate profit growth, there are strong merits for allocating capital towards more defensive assets like listed real estate. • US multinationals are importing disinflation from the slowdown in global trade. These disinflationary pressures are providing a cap on rising US Treasury yields, which was a previous concern for our thesis on US-REITs. www.reimag.co.za Positive signals for US-REITS: *Includes: P/E, P/CF, P/B and Dividend Yield Relative to S&P500. Source: Bank Credit Analyst Conclusion The US REIT market has been is in a particularly good space for a while now, but entry levels have earlier not been attractive enough to support a buying spree. Fortunately, the negative sentiment from nervous investors has spilled over to the share prices of the more defensive REIT sector. This combination of attractive entry points, defensive earnings and strong fundamentals places US-REITs in a particular sweet spot compared to other investment alternatives. RESOURCES Reitway Global NOVEMBER 2015 SA Real Estate Investor 45