Rates, borrowing And I'll say it again, rates expected to go up, effects borrowing, but does this effect the overall business plan of REITs?
Here's a quote from Dundee and Calloway.
https://www.bloomberg.com/news/2013-06-07/dundee-shows-reit-no-haven-as-bond-yields-rise.html
"Still Borrowing
The REIT index rose 0.5 percent for a yield of 5.23 percent at 4 p.m. in Toronto today afterCanada posted the biggest jobs gain in a decade and U.S. employment rose more than analysts estimated.
Michael Cooper, chief executive officer of Dundee REIT, said the rise in market interest rates is not affecting business.
“We’re able to borrow lots of money at very low rates,” Cooper said in a phone interview from Toronto today. “I wish the stock was doing better. We have lots of good days, and we have some days that aren’t as good. But the integrity of the business is in great shape.”
Calloway interim Chief Executive Officer Huw Thomas said the company is stable and the rising yield environment has not had any impact on their retail tenants.
“We have to manage for the long-term,” Thomas said in a phone interview today. “I’ve met with a number of unit holders, and we talked about the market in general and they see all REITs are down. If Calloway was down substantially and the rest were flat, I’d get many more calls.”"