REITs, interest rates and fairy tales: Don’t fear the big bad interest rate wolf
Published in Institutional Real Estate Investor Magazine
Dick Wollack of Fulton Advisors and I have discussed the effects of interest rate increases on REITs in this article for IREI. We argue that REITs are not interest rate sensitive stocks. When you look at the data, not all high dividend stocks are highly interest rate sensitive. We argue that the current environment can actually be beneficial to REITs. Some of the reasons are lack of new construction, growth (interest rates grow because the economy is growing), inflation.