[sgbuffett]

Some reits will not survive the rate hike cycles which has not ended.

Even as yield shoot past 10% for some, there is high risk of DPU cuts and even default for some.

Looking as past cycles these are opportunities but you need to wait. Examination of balance sheet is probably needed to suss out the good from the bad.

Looking at the list. Stay put of data center reits, the reason is not just rate hikes but this.

I am not a big fan of reits
But a month purchased some US office reits  stopped as rate hikes proved problemic for this sectors. Will relook here later for opportunities. Needless to say I lost money here.

None of the reits on the list are considered blue chips so a better strategy may be to look at the blue chip  as yields rise

During the last crisis high quality blue chip reits fell by 50% in 2008. And after that bounced up to give returns of 300+% total returns in subsequent10yrs

[theold]

Suppose to be profitable. But some aggressive ones keep expanding their portfolios with rights and loans. Next, they are in trouble.

They are rewarded for bigger portfolio.

[sgbuffett]

Suppose to be profitable. But some aggressive ones keep expanding their portfolios with rights and loans. Next, they are in trouble.

REITs are financially engineered asset that js why I am not a big fan of it. They use debt to create a higher yield but when cost of debt financing goes up it there squeezed.

In the past rates go up when economy is booming so the higher rental compensate the higher rates. But now we have higher rates and a weakening economy which is a double whammy. All reits issued in 2019-2021 took advantage of low rates to sell their reitss in IPO that are priced high. Now all the conditions have changed.

REITs can get really bad and sometimes disastrous when they try to patch their cashflow with rights issues....and that can  bring it down a lot.

So it will be disaster and opportunities as the rate hike cycle gets on the way.

[theold]

Maybe they can breakdown and sell off in units.