A sequence of rate of interest hikes within the final two years has affected all industries, however the true property sector has been among the many hardest hit as greater charges have led to elevated borrowing prices for REITs, posing efficiency challenges.
“The elevated bond yields of the final couple of years, which act as benchmark reference yields towards which property is valued, resulted in various levels of internet asset worth (NAV) declines of REITs,” stated Richard Parfect, portfolio supervisor at Momentum International IM.Â
“Moreover, it acted as successful to sentiment which resulted in some vital decline…
