REITs share prices are dropping. What happened?

High interest rate

• Interest Rate Increases: Rising interest rates can lead to higher borrowing costs for REITs and make their dividends less attractive compared to other investments.
• Economic Uncertainty: Economic downturns or uncertainty can impact property values and rental income, leading to lower REIT valuations.
• Sector-Specific Issues: Problems within specific real estate sectors, such as retail or office space, can affect REIT performance if they hold significant assets in those areas.
• Market Sentiment: Negative investor sentiment or broader market trends can also drive down REIT share prices.