Rising bond yields in the US and positive economic data has led to the general sentiment that interest rate hikes might be brought forward from the initial timeline. As such, for REITs that rely on significant debt financing to finance their property purchases, rise in interest rates are generally not good news for REITs and their shareholders.
Rising bond yields in the US and positive economic data has led to the general sentiment that interest rate hikes might be brought forward from the initial timeline. As such, for REITs that rely on significant debt financing to finance their property purchases, rise in interest rates are generally not good news for REITs and their shareholders.