Yet Another Value Podcast Bill Chen on the current set up for REITs
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Feb 3, 2026 Bill Chen, investor at Rise Up Partners focused on real estate and REIT strategies, joins to analyze why REITs have lagged and how capital cycles shaped that gap. He breaks down cap rates, rent growth, leverage and governance. They explore recent REIT liquidations, tactical event-driven opportunities, and sectors showing the biggest dislocations right now.
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How REIT Returns Really Work
- REIT total returns come from yield plus rent growth, not just cap-rate re-rating.
- With conservative rent growth and low leverage, public REITs can still deliver ~10% long-term total returns.
Capital Cycle Hurt REITs Recently
- A big supply wave from post-2021 development suppressed rent growth and crushed REIT share performance.
- Limited cap-rate contraction meant most REIT returns were dividends rather than multiple expansion.
Why REITs Reinvest Instead Of Buybacks
- Large blue-chip REITs balance buybacks and reinvestment to keep asset age low and maintain fiduciary duty.
- Recycling capital into development can outperform immediate buybacks when it modernizes the portfolio.