Rising rates will be a headwind in 2017, but fundamentals for real estate investment trusts remain healthy heading into the new year, said Marc Halle, managing director for PGIM Real Estate.

Halle is bullish on Hudson Pacific Properties (HPP) , saying the West Coast office REIT enjoys high barriers to entry in a high-growth area. He is also bullish on Essex Property Trust (ESS) , saying the west coast apartment REIT holds quality assets with high affordability in expensive markets.

Finally, Halle is a fan of shopping mall operator Federal Realty (FRT) due to its significant exposure to the D.C. metro market.

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