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Cramer takes second look at REITs

(Click for video linked to a searchable transcript of this Mad Money segment)

I think it may be time to circle back to this group, said Cramer.

That is, when interest rates spiked over the summer the Mad Money host suggested avoiding REITs broadly believing these stocks as well as other dividend yielders would take a hit, as investor rotated out of so-called 'bond alternative' stocks.

However, in their haste to exit, Cramer thinks pros may have dumped some best of breed names, too.

Therefore, Cramer thinks it's time to take a second look. And it appears Federal Realty has captured Cramer's attention.

Adam Jeffery | CNBC

"Federal Realty got hit like the rest of its cohort, falling from its highs for $118 in May down to $103 as of today, and the stock is now actually down 3% for the year," Cramer explained

"However, what I like about this company is that it has terrific visibility on its future growth than any of its peers."

Federal Realty plans to double its property income over the next decade, with $500 million of mixed use development already under construction, and another $500 million of development to follow at sites the company already controls.

Cramer considers metrics like this critical because he expects REITs to stay under pressure as interest rates creep higher.

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However, this stock may escape scorn and actually attract buyers because higher rates shouldn't dent its growth plans.

"And the vast majority of Federal Realty's debt is fixed rate with long-term maturities," Cramer added, another positive for the stock.

All told, "If you want or need to be in a REIT, I'd be in this one," Cramer said.

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