TSX:REI.UN - Post by User
Comment by
my2pennieson May 22, 2022 11:47pm
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Post# 34701660
RE:RE:Riocan Shareprice over past 17 years
RE:RE:Riocan Shareprice over past 17 years I think people need to read and understand the actual fiscal reports sections on interest rate planning and risk management sections. Anyone who thinks REITs are at the mercy of the BOC rates going back to normal (or higher) don't know very much about REIT investing or how REITs secure the majority of their financing. It's far more nuanced than some absurd general statement about floating rates going up and therefore distributions will need to be cut..... Anyways that's the reason why REITs stock prices are going down...its a bunch of uneducated day traders who don't know how financing works and are easily spooked. All good to me though, as the rest of us take advantage of their stupidity.
Tommy123 wrote: interest rates will soon be higher than we'vre seen in decades. What does that mean for the company when they have billions in debt? It means distributions cuts are likely.
SNAKEYBOY wrote: In 2005, this also traded at $22.75. So my question is that how that in 17 years with:
- Tons of new developments like resedential etc and capital recycling
- Post 2008 financial crisis of perpetually low interest rates
- 4 rounds of Quantitative Easing 2x or 3x the money in circulation
- Operational efficiencies with technology and managing the REIT
- Residential real estate that went up 4x during these 17 years
Has unit price basically not even moved? If you asked someone in 2005 where SP would be in 2022 with all of the above factors I easily would have said $35-40 MINIMUM