Following a multi‑year valuation reset, REITs are regaining ground as rates begin to ease, supply pipelines remain constrained and fundamentals reassert themselves. PGIM’s Rick Romano, Daniel Cooney, and Michael Gallagher share why now is a good time to consider REITs, where the opportunity set is broadening across regions, and why selectivity still matters.
United States
REITs continue to trade at significant discounts to both the private market and broader equity market—a disconnect that historically has preceded periods of outperformance.
Increased transactions support price discovery, while early cycle momentum benefit industrial REITs, apartments and select retail.
The team continues to favour defensive structural growth areas such as senior housing and data centres.
Europe
European REITs potentially offer compelling value, as stabilizing rates and better‑priced risk create selective opportunities.
While growth expectations in the region remain subdued and political uncertainty persists, supply discipline supports fundamentals.
Early recovery signs have emerged, notably in London and Paris prime office markets.
Asia Pacific
Asia Pacific REITs remain global leaders, supported by monetary policy, governance reform, and strong local catalysts.
Fundamentals are underpinned by limited supply and selective M&A, with opportunities concentrated in Japanese developers, Australian data centres, Hong Kong retail, and high‑quality Singapore REITs.
Read on for PGIM's latest global real estate securities outlook call highlights.
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