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3 REITs to Watch as Fed Rate Cut Bets Heat Up for 2026

Investing.com Logo Investing.com By Jesse Cohen
3 REITs to Watch as Fed Rate Cut Bets Heat Up for 2026

As Federal Reserve rate cut expectations build for 2026, Real Estate Investment Trusts (REITs) are positioned to benefit from lower borrowing costs and increased property valuations. Three REITs stand out: Realty Income, known for monthly dividends and defensive tenants; Prologis, the world's largest industrial logistics REIT; and Digital Realty Trust, a hyperscale data center leader benefiting from AI growth.

Insights
PFE   neutral

Acquiring company with proposed merger, but no explicit positive or negative indicators in the article


O   positive

Strong defensive income play with 32-year dividend streak, 5.93% yield, 11.6% analyst upside target, stable Buy consensus, and recession-resistant tenants. Benefits from lower rates and European expansion opportunities.