This article was coproduced with Nicholas Ward.

In recent months, we’ve given a lot of attention to the multi-family real estate investment trust (REIT) subsector. Its relatively high-rent collection throughout the Covid-19 recession has marked it as one to watch, at the very least.

Essex Property Trust (ESS) and AvalonBay Communities (AVB), which are widely viewed as blue-chip stocks, have stood out in particular. But we also just wrote on the “grave dancer” REIT, Equity Residential (EQR).

ESS – one of just a few dividend-aristocrat REITs – and AVB have produced strong, double-digit total return compound annual growth rates (CAGRs) over the long-term. While the latter froze its dividend during the Great Recession, it didn’t cut it, which is still an impressive feat.

We continue to believe that all these companies offer rare and compelling value in today’s market environment. However, we recognize that many people have concerns about

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