Killam Apartment REIT T.KMP.UN

RE:Can someone explain this

[Maxmoe]

The answer to your question is found on the balance sheet. Kmp has $2 billion in debt. Every 1% increase in interest rates eats up $20 million in profit/cash flow. So that's about 3 months worth of dividends. And that's for a 1% increase. A 4% increase would be $80 million which is more than the annual dividend. The current dividend is very unlikely to be cut, but the jump in rates will make it very difficult to raise our divy for the foreseeable future, and investors will be tempted to switch to investing in bonds if the bond yield is better than the dividend yield on Kmp. Is that enough 'sense' ?  So jack up the rent some more. Tough luck for my niece who is a tenant. Uncle grumpy needs his divy.

WDMBell wrote: REITS are dropping like a rock and yet rental rates are increasing and suites are becoming scarce.  How does this make any sense?!?

https://www.theglobeandmail.com/investing/personal-finance/household-finances/article-its-a-dog-eat-dog-world-as-housing-cool-down-helps-ignite-rental/