Low-Yielding REITs Leave Little Margin for Error

Data-center REITs enjoy some of the highest multiples on the market and thus offer yields of 3% and sometimes even less when other high-quality REITs in other sectors trade at higher yields. To achieve a good return from a low-yielding REIT, a lot has to go your way -- lease rates have to go up, interest rates have to stay put, and so on -- for you to eke out a solid rate of return.

In this episode of Industry Focus: Financials, join Michael Douglass and Jordan Wathen as they discuss why data-center REITs offer little margin of safety and aren't exactly immune from disruption themselves.

A full transcript follows the video.

Source: Fool.com