Actual property funding trusts are having a nasty yr. But should you sift by means of the sector, you can discover a chance to make some huge cash, in line with Jenny Harrington, CEO of Gilman Hill Asset Administration. The MSCI US REIT Index is down almost 21% in 2022, in line with FactSet. The index has 132 constituents, representing about 99% of the U.S. REIT universe. As compared, the S & P 500 has misplaced about 11% thus far this yr. Blackstone lately needed to restrict withdrawals from its retail actual property fund , BREIT, for November and December. The funding car obtained repurchase requests that exceeded the two% internet asset worth month-to-month restrict and the 5% quarterly restrict. General, rising rates of interest are largely guilty for the hunch within the sector, since buyers who’ve REITs for his or her excessive dividend yields could promote the belongings in favor of risk-free Treasurys. The Treasury yields have been climbing this yr, with the 2-year observe at present yielding greater than 4%. “The underlying companies are in glorious form in lots of instances,” Harrington stated 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 thus far. Nationwide Retail Properties , Postal Realty Belief , Sabra Well being Care and SL Inexperienced Realty are additionally on her record. “In an economic system that’s sturdy, which we’re nonetheless in … they produce actual earnings and they can improve their rents,” Harrington stated. “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 stated on “Halftime Report.” Lebenthal owns Camden Property Belief , which owns, manages and develops multifamily condominium communities within the Solar Belt space. Individuals are transferring to the world within the southern a part of the U.S. as they go away higher-taxed coastal states, he stated. The important thing to investing is to type by means of the sector and select correctly, Harrington added. “You must decide by means of and never use the broad brush on this,” she stated. “There’s huge alternative and I believe that as a result of they’re down a lot, this can be a place the place you’ll be able to really make some huge cash going into 2023.”