Core Insights - The Federal Reserve's interest rate cuts in September have negatively impacted the real estate sector, particularly real estate investment trusts (REITs) and related ETFs, which have shown losses over the past 30 and 90 days [1] Group 1: Market Performance - Despite recent disappointments, investors are advised not to hastily dismiss REITs and related ETFs, as further rate cuts may present new opportunities [2] - The ALPS Active REIT ETF, which is actively managed, could be a viable option for investors looking at real estate funds [2][3] Group 2: REITs with Recovery Potential - Some REITs, such as Americold Realty Trust (COLD), have seen significant declines (down nearly 51% over the past year) but may now represent value plays with rebound potential [4] - Morningstar analysts highlight Americold as a top idea in the sector, alongside Federal Realty Investment Trust (FRT), which is down 13.21% year-to-date but may recover as interest in retail REITs grows [5] Group 3: Federal Realty Investment Trust (FRT) Analysis - Federal Realty has the highest average population density and per capita income among shopping center REITs, which supports its strong growth prospects and high dividend yield [6] - Concerns regarding 10% of Federal Realty's rent coming from office tenants have contributed to its sell-off, but its high-quality portfolio is expected to trade at a premium compared to industry peers [6]

REITs and the related ETFs haven't done much following the Federal Reserve's interest rate cut, indicating that was largely priced into the rate-sensitive sector. More rate cuts could be on the way. However, investors may want to examine other potential catalysts for real estate equities. On that note, the ALPS Active REIT ETF (REIT) is an ETF to watch for multiple reasons, including a nearly 15% weight to retail REITs. Yes, retail REITs, a corner of the real estate sector long seen as vulnerable to the ris ...

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