The struggles of the UK’s real estate investment trusts (Reits) have been well-documented. Higher interest rates have caused property values to drop and have in turn wiped billions off Reits’ own values.
Seeing this, some UK investors might be tempted by Reits across the Atlantic, whose prices have fared relatively better over recent years (see chart). Such investors should exercise caution. The American Reits have a lot going for them, but they also come with drawbacks that are unique to their market.
