REITs and Cap Rates

Jussi discusses the current landscape of REITs, emphasizing the need for selectivity due to some being aggressively priced amid rising interest rates. He highlights the relationship between cap rates and interest rates, suggesting that many investors expect a decline in rates, which could stabilize property prices. With strong rent growth, he finds certain REITs, particularly those specializing in apartments, to be more attractive investments despite the overall market downturn.