Real estate investment trusts (REITs) were deeply affected by the Federal Reserve’s actions in 2022, which led to higher interest rates. Even as investors anticipated an eventual lowering later in 2023 or at least by 2024, sellers remained in control of REIT shares all year.
Real estate investment trusts (REITs) continue to weaken, with a number of them hitting new 12-month lows.
These reflect the negative effects on the market of the higher interest rates that the Federal Reserve is pursuing. Other factors are at work, but this is a rate-sensitive group and they’re feeling the pain.
The carnage in the real estate investment trust sector continues as new names hit new 52-week lows. The effect of rising interest rates is hitting the group hard and it’s not clear when the Fed might “pivot” to lower rates – late 2023, early 2024? In the meantime, these rate-sensitive REITs are not attracting buyers the way they used to.
Shares of residential real estate investment trust (REIT) Centerspace (NYSE: CSR) sold with extraordinarily heavy volume and touched a brand new 52-week low.
Higher interest rates — and the expectation that even higher rates are on the way — have made the real estate investment trust (REIT) game a difficult one lately.
There are other factors, to be sure, but this industry is highly interest-rate sensitive and it’s been uncomfortable this year.
City Office REIT Inc. (NYSE: CIO) is a real estate investment trust (REIT) with a group of properties in the Sun Belt region of America, which generally refers to the South and Southwest areas of the country.