Risks in Reits are not what they once were

WE'RE used to thinking of real estate investment trusts, or Reits, as defensive plays that beat the market during times of uncertainty.

But given that Reits are no longer in bargain territory, it's worth taking stock of some of the reasons behind this perception.

So far, the Reit rally has been driven by a lower-for-longer interest rate outlook, which basically reflects the belief that economic growth will remain weak.

Generally, Reits own real estate that they rent out on long-term leases, which s…