Parkway Life REIT ("Plife): one of my favourite REIT. I got to know of this when I just "joined" the investment community and read it on
Dividend Warrior blog. He is one of my greatest inspiration. :)
Now, let's have some fun dealing with some FAQs.
"REITs are going to suffer from the impending interest rate hike"
- a) Gearing 35.2%, additional headroom of $298.8M to hit the cap.
- b) Lowest all in cost of debt of 4%(that's insanely low).
What PLife is doing is to have all of their loans be variable rates (thus the low cost of debt) to have the upfront interest-savings now.
I feel this is also a wise move as the FED is unlikely to have interest rates hiked to the normal levels anytime in the short to mid-term.
Having the loans swapped to fixed rates (at about ......