TSX:REI.UN - Post by User
Comment by
materialsgirlon May 25, 2022 5:13pm
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Post# 34707454
RE:RE:RE:Riocan Shareprice over past 17 years
RE:RE:RE:Riocan Shareprice over past 17 yearsRising interest rates are generally a head wind for REITs as debts will
eventually cost more.
in general the renewals happen over 8 or 10 years so the short term impact is small
In general, high interest rates come as a result of inflation. Inflation results in
higher rents and higher building prices.
At this time, there is nothing to fear. Investors should be alert to what is going on.
At 8% to 10% interest there coud be significant unknown impacts
At 20% interest the whole REIT structure may not work at all and REITs may have
to convert to a standard corporation. Who knows/
The risk of very high interest rates is that governments all over will bot be able to pay
interest on their debt
In summary if REITs get into trouble we will have much bigger worries
mat