WASHINGTON, DC—It appears that respondents to a GlobeSt.com pollon future REIT values have not been drinking the Kool-aid, err, Imean listening to conventional wisdom about the REIT industry andhow they are not as interest rate sensitive as widely assumed.
When we asked why REITs were doing so well this year, despitethe probability that the Federal Reserve Bank would raise rates,the majority, or 52% answered that their currentexcellent run is only temporary. Right now, this group agreed,rates are still relatively low and the Fed is only slowly raisingthem. "But once they reach a certain level, investors will dumptheir REIT stocks as expected."
Another 27% declared that investors' loveaffair with REITs right now is not about interest rates at all."Investors are waiting for the next equity crash, and REITs are asgood a place as any to ride out the next storm," they agree.
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