RioCan Real Estate Investment Trust T.REI.UN

RE:RE:RE:RE:RE:RE:SICKENING DROP TODAY

[Mirko22]

Shirtlessnomore wrote: Exactly, that's something that has seemingly remained under the radar during all of this, many have done nothing but look to negatives with reits but the fact of the matter is financially there have been some huge benefits and the interest rates are a big one. Raising interest rates too high would result in the single biggest financial crisis that has ever happened, the debt and refinancing that has occurred year after year is unbelievable, nobody saves for anything anymore they just sign their name for whatever they want betwern refinancing, LOC's and new financing.

gashole wrote: In January the unemployment rate was 9.4%. They wont be increasing rates until things are looking normal again.. They know home prices are skyrocketing, and last year when you bought a house for 750k and put 300k down, you are left with a 450k mortgage, now that same house is 1 million, put the 300k down and you have a 700k mortgage, but at a lower interest rate.. If rates are going to go up substantially by the time you renew it could cost you 800, 1000, 1500/month??? more... Thats a massive hit.. I would suggest we wont see more than 1% higher interest rates in the next 2 or 3 years.. Otherwise people will be mortgage poor, and this will decimate spending.
How the perception of rates going higher affects the share price of reits, Im not sure, but they are borrowing and renewing mortgages as much as they can right now, this will protect them and imrove cash flow in the coming years.. All I know is pre pandemic rates were MUCH higher and this was $22/share.. Now they are in better financial condition and the shares are $14.. Pretty sad. Someone needs to buy them out for NAV, I will tender my shares for $21 or $22 rather than wait 2 or 3 years to hit that amount.. 

RetiredCEO wrote: Rates won't be going up materially enough to effect the rebound of the economy. The economy can afford a higher interest rate.

Shirtlessnomore wrote: Interest rates CANNOT get crazy soon, that will effectively cripple the entire country, there is a catch 22 that has occurred thru the last number of years, if you raise the interest rates to say 6% or higher half the homeowners in the country lose their home. By lowering the rates for so many years that has effectively sent real estate prices higher and higher leaving it impossible to interest rates back to higher levels, now a little bit? Sure that might fly but they cant raise much or the banks will own thousands of properties while canadians go bankrupt. That is not what fixes the already sideshow that's happened in the last year. Crazy interest rates are NOT an option.

Tommy123 wrote:

thenewsnake wrote: Looks like instead of cuddling up to $20, we are being slaughtered back to $18!

It's because in this new higher interest rate environment, it will be harder for RioCan to get financing at decent rates. That obivously puts pressure on their stock. I think it'll be a couple years until they increase their dividend, as interest rate payments are going to get crazy soon.

 

 

 

Few banks have increased lending rates. They will continue to raise interest rates to cool off the housing market. Impact on REITS will not be much. Rates are still historical rates.