TSX:AX.P.E - Post by User
Comment by
EstevanOutsideron Apr 18, 2024 8:05pm
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Post# 35997094
RE:Reits catch a bid in the face of rising yeilds
RE:Reits catch a bid in the face of rising yeildsGood post. Totally agree. Rates here are fine. Also higher rates has frozen (CRE) developments, especially in office where the market now faces multi decade low new builds plus conservations/demolishions. Even residential side is seeing a drop in new builds! I think high rates can have longer term tailwinds as we will see a shortage of CRE relative to residential where there is a hot asset class with incentive to build.
Rates in Canada likely fall from here but if they don't it's well manageable for REITs.
More dispositions announced tonight from other REITs (see TNT) at prices higher than paid in 2018 show how REITs can deleverage the balance sheet and improve liquidity to take advantage of near-term opportunities, just like Artis is currently doing.. undetected by most.
Definetely feeling better now than before. Market fundies are proving themselves out with more evidence of dispositions. Don't think it will be too long now.
GL