TSX:KMP.UN - Post by User
Comment by
SusanBollandon Jun 29, 2022 1:14pm
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Post# 34790994
RE:RE:RE:Can someone explain this
RE:RE:RE:Can someone explain thisDanielDarden123 wrote: Your analysis would be more useful if you made the necessary and important distinction between floating rate debt and fixed mortgage debt. If you check the balance sheet you will realize that most is fixed and does not escalate with a rate increase but rather is renegotiated at the end of the term. That is not considered in your calculation and is therefore misleading. Yes, interest rates affect real estate values but so does inflation. Keeping the proper perspective is important.
exactly ... Most Canadian REITS have their debt locked in for 5 plus years.... so there wont be any change to their interest costs.... and by the time the mortgages come up for renewal the central banks will be lowering interest rates to "help" us out of the recession they just put us in by raising rates... LOL