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19-03-2024, 12:50 PM
Some like Manulife collapsed already so don't think of reits as safe investments.
The reason why eeits are facing pressure is as the high interest rate environment drags on more and more of the debt is refinanced at the higher rates.
Remember almost all the reits are listed when US interest rate was held near zero by the FED.
Most reits will have to freeze paying out dividends at some point in tike.
Only the bluest blue chip reits that van borrow cheaper that others can continue to pay dividends but these are likely going to be cut.
A few months ago reits bounced because aged was expected to cut rates 6 tines in 2024. Now the number is reduced to 3 cuts ....but inflation is stubbornly high may cause fed to reduce the rate cuts to 2 or none.
Yes reits have fallen but there is no need go rush as the wind is blowing against them....downside risk appear to he increasing...
The reason why eeits are facing pressure is as the high interest rate environment drags on more and more of the debt is refinanced at the higher rates.
Remember almost all the reits are listed when US interest rate was held near zero by the FED.
Most reits will have to freeze paying out dividends at some point in tike.
Only the bluest blue chip reits that van borrow cheaper that others can continue to pay dividends but these are likely going to be cut.
A few months ago reits bounced because aged was expected to cut rates 6 tines in 2024. Now the number is reduced to 3 cuts ....but inflation is stubbornly high may cause fed to reduce the rate cuts to 2 or none.
Yes reits have fallen but there is no need go rush as the wind is blowing against them....downside risk appear to he increasing...
I, being poor, have only my dreams; I have spread my dreams under your feet; Tread softly because you tread on my dreams.
Powell will increase another interest rate. LOL I wanna see those what ' Guru " property research whoever twist their words again.
