Green Street



Reuters: REITs Outperform Broader Market in Rising Rate Environment

According to Reuters:

Rising interest rates this year are helping property-linked stocks outperform the broader U.S. equity market as investors bet real estate investment trusts (REITs) will provide a better return as the Federal Reserve tightens monetary policy further.

Higher rates can crimp corporate profit margins, a concern that led to a brief sell-off on Wall Street last week, but rents can be raised in a growing economy, which is helping lift REITs.


Most property types, with the exception of retail, are experiencing growth in rents, Joi Mar, an analyst at Green Street Advisors, wrote in a recent report.

With supply and demand roughly in balance, inflationary-type rent growth can be expected for the near future, she said.


To read the full article from Reuters, click here.