Bad News For REITs, Good News For High Income Investors
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The article discusses the elevated risks for REITs due to rising long-term yields, which have dashed expectations of REITs performing well when the Fed decreases interest rates. Two indicators suggest high risks for REITs to decline.
November 25, 2024 | 2:30 pm
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Alexandria Real Estate Equities (ARE) is likely to face challenges due to rising long-term yields, which increase risks for REITs. Expectations of a REIT boom with Fed rate cuts are now uncertain.
The article highlights the negative impact of rising long-term yields on REITs, including ARE. This environment increases the cost of capital and pressures REIT valuations, making a decline in ARE's stock price likely.
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