Good point, but upside risk is limited too. Ever seen a mREIT 10-bagger?
They may make great shorts because most buyers have ZERO understanding of how they work... they just see the outrageous div and HOPE it will last forever.
What is the short interest in ARR?
At least in the past decade shorting mREITS would have worked out fabulously at times.... certainly better than shorting blue chips (like what I own) that are hitting highs daily.
I don't short stocks btw. I think it's generally a dumb thing to do. I had a friend many years ago who got killed shorting. And I NEVER do dumb things with my money. Taxwise, shorting isn't smart either.