Quote:
Originally Posted by noclue
What's interesting to pay attention to is the fall of REIT shares.
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my opinion on REITs is that they are a cashflow play, that is, their dividends. Given that any REIT worth investing in owns the best quality commercial real estate, there won't be any significant changes in their cashflows.
REITs will get temporarily hurt as interest rates rise, no question, as their real return will decrease, however these are usually temporary in nature as in the long term decent REITs should be able to weather the storms and provide a relatively stable real rate of return.
Now, having said that, i don't think one should own REITs as more than just a small part of their income generating equities... but they are nice to own in the long term (top quality ones, that is)