Q: Good day.
DIR.UN: I read that REITs become favourable in a rising interest rate environment. Is this true for industrial REITs too? Could you please help me to understand why. I assume that they can raise rents, but do they not have longer term rental contracts (?). Any property purchases would also cost them more. How do they benefit from higher interest rates? Thank you.
DIR.UN: I read that REITs become favourable in a rising interest rate environment. Is this true for industrial REITs too? Could you please help me to understand why. I assume that they can raise rents, but do they not have longer term rental contracts (?). Any property purchases would also cost them more. How do they benefit from higher interest rates? Thank you.