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Past Gains And Future Risks Of REITs

Sunday, July 3, 2011 - 6:45 AM
REITs have performed well since 2009 even though their yields have gone down. This AP article reviews various REITs and describes some pros and cons. Like bonds, REIT stock prices could take a hit when interest rates rise:
If the economic recovery picks up speed, interest rates are likely to increase, raising REITs’ borrowing costs. That would make it more expensive to acquire new properties, which could crimp REITs’ stock prices. Higher rates would also lift bond yields, making them more competitive with REIT dividends.

Ken TuminKen Tumin5,469 posts since
Nov 29, 2009
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