As higher interest rates weigh on the real estate sector, one analyst said there are still opportunities as the fundamentals for certain asset classes remain intact. 

Speaking with BNN Bloomberg’s Jon Erlichman on Thursday, Mark Rothschild, an analyst at Canaccord Genuity, said that last year was broadly difficult for real estate investment trusts (REITs). 

“Last year was definitely a tough year for the REIT sector with rising long-term interest rates, concerns about the economy definitely hit property values and investors sold REITs across the board,” Rothschild said. 

He said that even REITs with strong fundamentals and rent growth were affected, but there are some stocks he still likes.

“Certain asset classes have very strong fundamentals with exceptionally good, robust rent growth and industrial properties are definitely an asset class that's benefiting from certain changes in the way businesses operate,” Rothschild said. 

Within the REIT sector, Rothschild said he recommends Dream Industrial REIT (DIR.U), Killam Apartment REIT (KMP.UN) and BSR REIT (HOM.U). 

He, his family members, his firm and clients do not own any of the stocks mentioned above. 

Check out the full video at the top of the article to learn more.