REITs, or Real Estate Investment Trusts, are considered by many to be an essential holding in a well-diversified portfolio. However, many REITs, especially those specializing in commercial real estate such as office buildings, have been horrifically damaged by the dramatic drop in demand for office space throughout the US. One of the most widely-held REITs operating in this space is the Vornado Realty Trust (VNO), which has a very heavy presence in the office space markets of New York City, Chicago and San Francisco. Despite paying a hefty dividend, the stock has fallen dramatically, down about 75% from its all-time high and now trading where it first traded in 1997, 25 years ago. (Chart from wolfstreet.com)
Jeffrey Cerny