REITs tend to take on debt to boost their returns and so they incur interest only expense. A higher interest rate will increase the interest expense and thus decrease the cash flow available to pay shareholders. A reduced dividends, decreases the dividend yield thus affecting the share price negatively. Additionally when interest rates rise, the interest yield on REITs rise, thus the value of REITs fall.
REITs tend to take on debt to boost their returns and so they incur interest only expense. A higher interest rate will increase the interest expense and thus decrease the cash flow available to pay shareholders. A reduced dividends, decreases the dividend yield thus affecting the share price negatively. Additionally when interest rates rise, the interest yield on REITs rise, thus the value of REITs fall.