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Yes, Low Rates Justify Higher REIT Prices - But Watch Out When The Trend Changes

I've written a few articles about real estate investment trust (REITs) being overpriced, highlighting Realty Income Corp (NYSE:O), HCP, Inc. (NYSE:HCP), and Ventas, Inc. (NYSE:VTR). All have recently been trading at the high end of their historic valuation ranges, with Ventas the closest to what I would consider a reasonable price. One astute reader pointed out that low interest rates should justify higher prices. He's right, of course, but there are risks inherent in that…