The Fed has just announced that the key interest rate will NOT be lowered any further for the time being.
It is not bad for REITs because of its impact on rents, but because they work heavily with debt capital. You can also take a look at the debt structure in the financial supplement in the business figures. At $O, for example, it was thought at the peak of the high-interest phase that they would get through it well because they would not have to take on a large chunk of new debt until 2026. Of course, the stagnation of the yield curve is now a bad thing. It's still one of the best REITs, but read up a little more on the subject first.
It is not bad for REITs because of its impact on rents, but because they work heavily with debt capital. You can also take a look at the debt structure in the financial supplement in the business figures. At $O, for example, it was thought at the peak of the high-interest phase that they would get through it well because they would not have to take on a large chunk of new debt until 2026. Of course, the stagnation of the yield curve is now a bad thing. It's still one of the best REITs, but read up a little more on the subject first.
•
1010
•
@DoppelSchlechtMinus As has already been said here, loans/debt are bad for REITs because they are "more expensive". However, I see the advantage in the fact that REITs "have to" optimize their structures, investments, processes and costs and become leaner. In a way, they are trimming their future viability and this will have a positive impact in the coming years.
••
1Wk
@DoppelSchlechtMinus very well written and explained!
•
11
•