AEW’s Gina Szymanski Bullish on Outlook for REIT Growth, Fundamentals

Gina Szymanski, chief investment officer at  AEW Capital Management’s global securities business, told the REIT Report that for long-term investors in the REIT market, “there is no better time in the cycle than now,” as historically low levels of supply across all sectors bolster prospects for growth and fundamentals.

“We actually are very bullish,” Szymanski said. “We are sitting at a trough in the cycle. When interest rates started to rise in 2022, it was really pencils down in terms of new development and it took a while for the supply pipelines to empty across the board. But now, really across all sectors, we're sitting at historically low levels of new supply. That will ultimately lead to more pricing power for landlords, and we are seeing green shoots of that,” she added.

Acknowledging that the spread between REIT implied cap rates and the 10-year Treasury has halved since the start of the year, Szymanski emphasized that REITs can still thrive if investors focus on growth sectors, which include senior housing, data centers, and retail.

Chapters:
00:00 Bullish REIT Snapshot
00:22 Meet the Host and Guest
00:43 What Changed Since January
02:28 Bond Yields and Valuation Cushion
03:23 High Growth Sector Picks
05:23 Is There Still Upside
06:02 Apartments and Office Discounts
08:08 Balance Sheets and Deal Activity
09:02 US Versus Global Allocation
09:57 Volatility as an Advantage
11:00 Cycle Trough and Closing Takeaways
12:12 Final Thanks and Subscribe