Actual property funding trusts are having a nasty yr. But when you sift by means of the sector, you might discover a chance to make some huge cash, in accordance with Jenny Harrington, CEO of Gilman Hill Asset Administration. The MSCI US REIT Index is down almost 21% in 2022, in accordance with FactSet. The index has 132 constituents, representing about 99% of the U.S. REIT universe. Compared, the S & P 500 has misplaced about 11% to date this yr. Blackstone just lately needed to restrict withdrawals from its retail actual property fund , BREIT, for November and December. The funding automobile acquired repurchase requests that exceeded the two% web asset worth month-to-month restrict and the 5% quarterly restrict. General, rising rates of interest are largely in charge for the hunch within the sector, since traders who’ve REITs for his or her excessive dividend yields might promote the property in favor of risk-free Treasurys. The Treasury yields have been climbing this yr, with the 2-year be aware at present yielding greater than 4%. “The underlying companies are in wonderful form in lots of circumstances,” Harrington mentioned on CNBC’s ” Halftime Report ” Friday. “I do not assume that you’re doing your self a service to make the broad-based assertion, ‘business actual property is dangerous.'” She owns a number of names, together with Iron Mountain , which helps data storage and retrieval to companies. It at present has a 4.5% yield and is up greater than 5% yr up to now. Nationwide Retail Properties , Postal Realty Belief , Sabra Well being Care and SL Inexperienced Realty are additionally on her checklist. “In an economic system that’s sturdy, which we’re nonetheless in … they produce actual earnings and they’re able to enhance their rents,” Harrington mentioned. “Most of them nonetheless have actually respectable earnings development forward.” Jim Lebenthal, chief fairness strategist at Cerity Companions, additionally is not bailing on REITs. “Rates of interest seem to have peaked. The time to get out of REITs, I might say, is when rates of interest are going up,” he mentioned on “Halftime Report.” Lebenthal owns Camden Property Belief , which owns, manages and develops multifamily residence communities within the Solar Belt space. Individuals are shifting to the realm within the southern a part of the U.S. as they go away higher-taxed coastal states, he mentioned. The important thing to investing is to kind by means of the sector and select properly, Harrington added. “It is advisable to decide by means of and never use the broad brush on this,” she mentioned. “There’s monumental alternative and I feel that as a result of they’re down a lot, this can be a place the place you may truly make some huge cash going into 2023.”