As a recent Trepp report reminds, REITs have had some challenging times of late because inflation and recession fears caused investors to take dimmer views of commercial real estate values.

"So far in 2023, REIT share prices have rebounded, but they are still down by 12% versus prices a year ago. Additionally, private REITs have been facing substantial investor withdrawals, so much so that they have had to implement limits on how much can be taken out."

And so, the firm decided to profile the REIT sector by looking at how lending institutions have treated the entities. Trepp examined and various factors of commercial and industrial (C&I) loans to real estate lessors. Although that category is larger than REITs, it should have a close relationship with the more specific class and so act as a proxy.

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