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Why REITs aren't getting killed by rising interest rates this time around
CNBC examines why stronger real-estate fundamentals may help some REITs withstand rising interest rates. The report cites Cohen & Steers research finding that the relationship between REIT returns and Treasury-yield changes has varied over time, limiting the usefulness of rates alone as a performance predictor.
The article explains that earlier rate increases raised borrowing costs and depressed values, while new supply also weighed on rents. Higher financing costs subsequently constrained development. That reduced construction pipeline can improve the competitive position of existing properties, even though owners still face higher debt costs and competing investment yields.
Research considerations
REIT news can cover acquisitions, operating results, distributions, capital raising, and liquidity. Publicly traded and nontraded structures can have different reporting and liquidity arrangements. Identify the actual vehicle before comparing an announcement with other investments.
- Which REIT or portfolio is covered, and what period does the announcement describe?
- How do the reported figures relate to debt, operating performance, distribution coverage, and liquidity?
This Sequoia Research summary was prepared with AI assistance from the credited source. It is not independent verification of the source’s claims. The original publisher retains authorship of its reporting; follow the source link for the complete article.
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