[sgbuffett]

Not only do they go up they performed better than stocks.
You notice 2 periods where it had negative returns but it goes to positive once you add back the dividends.

So basically in all Fed tightening REITs have good positive returns vs other stocks.

Why this is so is not difficult to understand.
1. Fed hike rates when economy is strong and signs of jnflation appear.
2. When economy is strong the asset values and rental collected by reits goes up much more than the interest on debt.

3. Also much of the debt is in bonds that mature in yrs so tye Fed rate hike has no immediate impact. When they need to refinance Fed may be done with raising rates.

Exceptions can occur js your reits is in wrong type of assets disrupted by certain events...that in itself is a problem and rate hikes worsen it.

For example

1. There is a trend of big tech firms building their own data centers causing a demand fall in data center.....that is why the once "hot" data center reits are falling