Master Income ETF
Commentary
Fed’s Higher Rates May Have a Muted Impact on REITs
by Boris Pialloux of Master Income ETF,
The impact on Real Estate Investment Trusts (REITs) could be muted as strong fundamentals and the use of fixed rate debt may continue to bolster free cash flows and dividends. Additionally, Cap rates (a key denominator to estimate underlying net asset values) may be less sensitive to short-term rate increases than long-term rate trends.
