The issue to be aware of with REITs is valuation. The FED's policy on interest rates is distorting the true cost of capital, ROI, and valuations. When it comes to real estate valuation is driven by cap rates. As cap rates decline valuations increase. REITS are trading well in excess of their replacement costs. So if you don't feel like you have a good handle on rate increases and the pace of rate increases you are probably taking on more risk than you know (and could handle).