Hi Charles,
In general & simple terms, rising rates are a negative for REIT’s, however they will impact different REIT’s in different ways. Goodman (GMG) will grow earnings at 20% this year so rising rates will influence them less as a proportion of their earnings. CLW, which is the Charter Hall Long WALE REIT will be more impacted because their growth is slower and their lease terms longer, it’s more like a longer dated bond. National Storage (NSR) that we own has a large tailwind from high demand and tight supply of storage which is pushing up storage rates (and therefore earnings), impact will be less there.
I think recently the market became more concerned about rates and their impact on REIT’s than is warranted, and the sell off in the property space over the past few weeks or so is a buying opportunity generally. I discussed property stocks in this weeks video update here.
Click here to watch