John Kim of BMO Discusses the Benefits of Investing in Industrial Real Estate Investment Trusts

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John Kim, a portfolio manager at BMO Global Asset Management, recently discussed the benefits of investing in industrial real estate investment trusts (REITs). Industrial REITs are a type of real estate investment that focuses on properties used for industrial purposes, such as warehouses, factories, and distribution centers.

Kim believes that industrial REITs can be a great way for investors to diversify their portfolios and benefit from the growth of the industrial sector. He noted that industrial REITs have been outperforming the broader real estate market in recent years, with returns of nearly 20% in 2020. He also pointed out that industrial REITs provide investors with a steady stream of income, as they typically pay out dividends on a quarterly basis.

Kim also highlighted the stability of industrial REITs. He noted that industrial properties tend to be less affected by economic downturns than other types of real estate investments, as they are often leased to tenants with long-term contracts. This makes them a great choice for investors who want to minimize their risk.

Kim also discussed the potential for growth in the industrial sector. He noted that e-commerce has been driving demand for industrial space, as companies need warehouses and distribution centers to store and ship their products. This increased demand has led to higher rents and occupancy rates, which has been beneficial for industrial REITs.

Overall, John Kim believes that industrial REITs are a great way for investors to diversify their portfolios and benefit from the growth of the industrial sector. With their steady stream of income and potential for growth, they can be a great addition to any investor’s portfolio.

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