Real estate investment trusts (REITs) have been hit hard in recent months as interest rates have risen. REITs are particularly sensitive to interest rates because they borrow money to finance their investments. When interest rates rise, REITs' borrowing costs go up, which can eat into their profits and make it more difficult to pay dividends to investors.
As a result of the recent interest rate hikes, many REITs have seen their share prices plummet. Here are five REITs that have recently hit new 12-month lows:
Crown Castle International (NYSE: CCI): Crown Castle is a large REIT that owns and operates wireless cell towers. The company's share price has fallen from a peak of $150 in February to a new low of $100.
Hannon Armstrong Sustainable Infrastructure Capital Trust (NYSE: HASI): Hannon Armstrong is a REIT that invests in sustainable infrastructure projects. The company's share price has fallen from a high of just over $38 in February to a low of $20 this week.
Medical Properties Trust (NYSE: MPW): Medical Properties Trust is a REIT that invests in healthcare facilities. The company's share price has fallen from a high of $34 in late July to a new low of $12.50.
W. P. Carey & Company (NYSE: WPC): W. P. Carey is a REIT that invests in net lease properties. The company's share price has fallen from a peak of $83 in late January to a low of $63.93 in August.
Xenia Hotels and Resorts (NYSE: XHR): Xenia Hotels and Resorts is a REIT that invests in hotels and resorts. The company's share price has fallen from a high of $14.50 in February to a new low of $10.50.
Realty Income (NYSE: O): Realty Income is a REIT that owns and operates single-tenant net lease commercial properties. The company's share price has fallen from a peak of $68.70 to a low of $44.97.
It is important to note that interest rates and mortgage rates could have peaked. If this is the case, the REIT sector could rebound. However, for now, the sector is trending downward.
Investors should be aware of the risks of investing in REITs, especially in a rising interest rate environment. REITs can be volatile investments, and there is no guarantee that they will make money. However, REITs can also be a good source of income, as many of them pay high dividends.
Investors should carefully consider their own financial situation and investment goals before investing in REITs. JOIN THE ZTRADEZ OPTIONS TRADING INVESTING DISCORD https://discord.gg/optionstrading
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