Not exact matches
I didn't invest a lot
in some of my favorite
REITs like OHI and O because I felt a rising
interest rate environment would be a stronger headwind for
REITs.
I'm curious what your thoughts are on investing
in REITs in what looks like a rising
interest rate environment?
This also means that triple net lease
REITs, which are often used by yield - hungry investors
in a low
interest rate environment as bond alternatives, can be thought of as very long - term duration bond proxies.
I'm not currently adding to my position
in REITs, but I have been watching Scott's
REIT (SRQ.UN - T) very closely these days, waiting to see if it dips any further
in our rising
interest rate environment.
We would not be the first to point out that there has been a rush toward safer, defensive stocks that are less - cyclical stocks and a rush toward bond substitute stocks like
REITs, MLPs, etc., as investors search for yield
in a declining
interest rate environment.
This pattern of relative performance may be linked to improved bank profitability
in a high or rising
interest rate environment and the desire of investors to own
REITs for yield purposes
in a falling or low
rate environment.
In low -
interest rate environments, the demand for
REITs can rise, increasing share prices.
In today's low
interest rate environment, I consider this high - quality high - yield
REIT very attractive at current levels.
Sam states that «You do not buy
REITs and dividend yielding stocks
in a rising
interest rate environment.»
«A combination of demand and limited additional supply on the market, coupled with the low
interest rate environment that we are
in, has really created a good
environment to be a seller of real estate right now,» says Nick Anthony, chief investment officer at diversified
REIT Duke Realty Corp..
Many of the
REITs are hedging or have already hedged a portion of their
interest rate exposure to minimise their risk
in an increasing
interest rate environment.
REITs «tested the hypothesis that accelerating fundamentals will save the sector
in a rising
interest rate environment,» wrote Morgan Stanley
REIT analyst Gregory White.
One of these factors is the public
REITs» cost of capital, which had risen earlier
in 2016, improved midway through the year and then increased again
in large measure as a result of actual or perceived changes
in the
interest rate environment.
Most
REITs (not just Healthcare) have been taking advantage of the low
interest rate environment to lock
in long - term debt at attractive
rates, and complement this with lower - cost floating
rate debt.
A Real Estate Play That's More Than «Location, Location, Location» «One type of investment that's typically shunned
in a rising
interest rate environment is real estate investment trusts, or
REITs.