The Globe and Mail reports in its Monday, June 2, edition that for nearly a year, investors have avoided rental real estate, fearing a property bubble. The Globe's Andrew Willis writes that the anticipated downturn, however, never materialized. Now, major fund managers are buying undervalued real estate investment trusts. Recently, GIC partnered with InterRent REIT's Mike McGahan to bid $2-billion for a Canadian company owning 12,000 apartment units. The InterRent takeover offer, prompted by a successful activist campaign from Anson Funds, has analysts urging investors to review their pessimistic stands on a sector that has underperformed office, retail and industrial REITs facing significant economic headwinds. In October, 2024, Ottawa rocked the rental property market by cutting back on immigration, foreign students and temporary workers. The price of InterRent REIT plunged as investors anticipated occupancy declining and rental income dropping for the first time in living memory. REITs are trading at over 20-per-cent discounts to net asset value due to expectations that landlords will need to lower rents to attract tenants. The anticipated slump has not occurred, as rental REITs continue to raise rents.