With rising interest rates, the sentiment towards REITs has taken a beating. Prices has came off a lot and some REITs are barely above their 52 week lows.

A Quick Background on why REITs are falling

The REIT sector has been delivering steady, alluring dividends for many years, supported by the low interest rate environment since the last global financial crisis in 2008. With a good yield difference between the (acquisition) financing costs and rental income, REITs are able to continue their merry-go-round and grow the DPU y-o-y. However, REITs have been under pressure as the US Federal Reserve has been aggressively hiking interest rates; Investors are now fretting over REITs’ ability to maintain their distribution per unit (DPU) as their cost of debt are projected to go higher. The key indicators to watch out for and assess whether the REIT is resilient enough to weather the rising interest rates...