The Shops at Kalakaua, one of the properties under American Asset Trust. (Photo: American Asset Trust)

The underlying fundamentals of US-listed REIT are healthy overall despite the threat of multiple rate hikes over the next two years, say analysts.

Earlier in the month, the Federal Reserve gave indications that there may be up to four rate hikes in 2018, putting a damper on the prices of REITs worldwide, including those listed in the US.

Prices of REITs tend to be subdued in times of rising interest rates, as investors move towards interest yielding instruments such as bonds, which are considered to be less risky than REITs.

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By Ridzwan Rahmat

Ridzwan has been analysing REITs and business trusts since 2008, and personally manages a portfolio comprising mainly of SGX-listed REITs. He founded REITsWeek in 2013.