This blog is my reply to a reader's comment on IREIT Global. Unlike bonds which have fixed coupons, REITs are able to command higher rents in an inflationary environment but it is important to see if they can do this in a timely manner. Most of IREIT Global's leases are linked to the CPI and higher inflation automatically leads to higher rental income while others are reviewed once cumulative inflation exceeds a 10% threshold. So, IREIT Global is able to increase rental income in a timely manner. In the meantime, higher interest rates will not impact IREIT Global's cost of doing business as their debt is fully hedged until late 2026. Unlike most other S-REITs, IREIT Global only pays out 90% of its distributable income which is an important factor when we consider the resilience of the REIT which is reflected in its financial numbers. So, for quite a while at least, these are not things to be concerned about....