03/28/2018 | by

Nareit’s Executive Vice President, Research & Investor Outreach, John Worth, will join two top REIT portfolio managers in an upcoming Bloomberg Intelligence webinar to discuss the impact of rising interest rates and inflation on REIT share prices. The webinar will take place on April 10 at 11:00 a.m. EDT, and registration is complimentary.

The webinar will explore why REIT share prices have been impacted so significantly by policy rate increases; the outlook for inflation and how REITs have historically performed during inflationary environments; and current REIT valuations and real estate fundamentals.

Rising interest rates have been identified by some analysts as explaining the REIT stock performance in the first quarter of 2018. However, market interest rates typically increase during periods when macroeconomic conditions are strengthening, the same strengthening that often drives positive REIT investment performance. John Worth explains how REITs typically perform well during periods of rising interest rates here.

Nareit’s research indicates that REITs are well positioned to handle the rise in interest rates. REITs have extended the average maturity of their debt to 75 months, locking in these low interest rates until well into the next decade. The balance sheets of the REIT industry overall are also less leveraged than at any point in the past 20 years. Read the research here.

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