In part 3 of our 5 part series where we discuss the REITs Soros Fund Management holds, we analyze George Soros’ 121,734 shares in Federal Realty Investment Trust (FRT ), which equates to a $17.6 million stake. His other positions include a $3.2 million stake in Equity Residential (EQR ) and an equal stake in AvalonBay Communities (AVB ). Soros Fund Management manages $10 billion dollars. His REIT positions are worth $80 million.
In a period of rising interest rates, it makes sense to load up on REITs since higher interest rates drive more Americans toward renting, rather than buying. REITs outperformed in the previous interest rate tightening cycle (before 2008) and we can see that history is repeating itself in the current interest rate tightening cycle.