Treasury yields at their highest since 2002
With Treasury yields at their highest since 2002, landlords whose long, fixed-rent leases behave like bonds, such as Realty Income, lose ground to landlords whose rents reset more quickly, such as Prologis.
What changed
We raised our expected return for Prologis, and lowered it for Realty Income.
| Symbol | Without it | With it | Change |
|---|---|---|---|
| PrologisPLD | 7.27% | 7.86% | +0.59pp |
| Realty IncomeO | 6.12% | 6.00% | −0.12pp |
Each stock as it stands now, and without this story. Figures are annual expected returns (arithmetic means). They are not a forecast or a promise.