TSX:REI.UN - Post by User
Comment by
Mousernanon Jun 22, 2022 11:15am
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Post# 34773997
RE:RE:RE:RE:MIND BOGGLING
RE:RE:RE:RE:MIND BOGGLINGOffice Property
If there is one asset that should come under scrutiny, it is real estate, whose life blood is credit. For a double whammy of higher rates and the lasting effects of the pandemic, look to office property. Remarkably, Bloomberg’s index of US office property real estate investment trusts, or REITs, is slightly lower now than it was 20 years ago, and almost back to the lows it hit during the worst of the pandemic in 2020:
Frankie10 wrote: You think rates are going to remain elevated for more than a year, let alone decades? US bond market outflows are equivilent to 08 when adjusted for gdp. Young and Eglington mall is jam packed every day...
Mousernan wrote: Real estate will be a sinking ship for 10 to 20 years. Rents will have to rise to cover interest rates, but tumbleweeds blowing through the mall is the reality.
Tommy123 wrote: RioCan has taken on a lot more debt than they had ten years ago. So while interest rates may be similar, there's a greater insolvency risk now, which the market is starting to price in.
SNAKEYBOY wrote:
10+ years of heavy developments, nice residential suites, sale of US portfolio, fancy renovations like sheppard centre, the big ticket Well to be done soon, and this is trading lower than it was 10 years ago even when interest rates were around this level. Its like the REIT sapce still things there a pandemic going on