The whole premise of a read is that it's not economical for all of these businesses to own their own real estate.

It's not economical for companies like Walgreens to own the buildings they operated in, which creates an opportunity for companies like Realty Inc.

There's a whole bunch of examples like that where it just doesn't make sense to own your own real estate.

And that's one thing that I think the market's really overlooking when it comes to data centers.

I'm Chris Hill and that's Motley Fool contributor Matt Frankl.

Despite a downmarket, some real estate trends aren't going away.

And that's part of what Diedra Woolard and Matt discuss in this episode, along with the fundamentals of REITS,

how to spot a yield trap, and investment ideas in warehousing, retail, and a couple of ETFs.

Not a great year for REITS in 2022.

The FTSE, the All-Equity Read number for the year, that came in at a negative of 24.95%.

That's not great. It's below the S&P, it's below the Dow.

Not as bad as the DAZDAQ, Tech had it worse year than REITS.

But 2021, REITS were total rock stars.

So usually REITS are kind of the steady part of my portfolio.

What's the story here? What's the volatility? Why did this happen this way?

You're right in the sense that REITS usually aren't so volatile, but you have to remember that neither are interest rates.

Interest rates have been particularly volatile this year.

Usually REITS move a whole lot slower than they have over the past year.

It's really rare for say the mortgage rate to double in a single year.

So REITS are very rate sensitive instruments.

They're designed to pay out steady income.

An income-focused investments generally are very sensitive to changes in yields.

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