You Can't Control the REIT Bear Market, but You Can Control What You Do About It

The Vanguard Real Estate Index ETF, a broad proxy for how real estate investment trusts (REITs) are doing, is down nearly 30% from its high-water mark in 2022. That's a massive drawdown that will likely elicit worries among conservative investors. But don't panic. If you stick with high-performing, industry-leading REITs, you should come through this pullback just fine, and with your dividend checks intact.

There are company-specific problems that have hurt specific REITs. For example, Americold Realty Trust has suffered because of supply chain problems in the food space it serves even as other industrial REITs thrived. There are also property niche problems that have hurt specific property sectors. Office REITs like SL Green have cut their dividends as the work-from-home trend has lingered as the coronavirus pandemic has waned. But from a REIT-wide perspective, one of the biggest problems has been rising interest rates.