Two REIT opportunities in the current tough climate

A series of rate rises have hit a number of property trusts quick hard over the past year. The disappearance of the “Bond Proxy” plus rising interest repayments all have conspired against our nation's largest collective of property owners, the REITs sector.

While we all know in our investing hearts that calling an end to the listed real estate market is folly, one can't help but feel nervous about what the current environment will do to prices longer term.

However, for this article I have decided to focus on two REITS that are future proof in the sense that they don’t require a total re-engineering of their asset base they are aligned with a growing thematic , and they are not exclusively involved in warehouses!

I am talking about the theme of “people” (remember us?!?) and two trusts that are leveraged to people are Arena REIT No 1 (ASX:ARF) and Charter Hall Social Infrastructure REIT (ASX:CQE) . Both have experienced big price pullbacks from highs, however the pullback could create opportunities for savvy long term investors looking for stocks with a ‘people’ thematic, which looks positive over a multi-year timeframe.

I have held...