The macro backdrop for real estate investment trusts (REITs) in 2022 turned negative during the second quarter of 2022 as central banks acted swiftly and severely by raising interest rates to combat inflation. The raises caused investors to sell asset classes that they deemed interest-rate sensitive like bonds and real estate. Real estate and REITs, however, share both bondlike and equitylike characteristics with their high-income payouts but have the ability to grow earnings as rents increase over time. The sell-off of REITs globally totaled approximately 25%, with Europe getting hit the hardest, followed by the United States and then Asia, which was down only about 10% in U.S. dollar terms. The sell-off within REITS did not fully distinguish between strong real estate fundamentals and weak real estate fundamentals. Essentially, any REIT with a low cap rate and a high earnings multiple was sold off indiscriminately and with little regard for growth prospects. The selloff also has created some great opportunities in property types whose growth is mispriced or undervalued — like shelter-related real estate and industrial real estate.