Artis Real Estate Investment Pref Shs Series E T.AX.PR.E

RE:RE:RE:RE:CAD 10 YEAR @ 3.60%

[Mongoose1234]

Frankie
a valuators model (Gordon Growth Model) or CAPM (Capital Asset Pricing Model) will use a risk free growth rate generally defined as bonds.

correlation is differnet though, a risky assets Beta can vary given a few factors
(ex for REITS, vacancy expections, rent growth expectations, etc) and this would cause the correlation to start to fall away.

REITs are driven by a number of factors
-vacancy and future expectations of vacancy
-rent growth and future expectations of rent growth (macro and mico factors)
-overall risk pricing for 'riskier' assets 
-interest rates for debt on the properties and yes, THIS is correlated strontly to bond rates

there will also be some correlation generally, but it's fairly low

“While cap rates and interest rates are loosely correlated, and rapidly rising interest rates would generally imply upward pressure on cap rates, the change in cap rates would typically be mitigated by rent growth prospects, local economic outlook, neighborhood demand/supply balance and other idiosyncratic factors for a specific property or investor,”

https://www.jpmorgan.com/insights/real-estate/commercial-term-lending/cap-rates-explained