The Australian skyline. Photo by Dan Freeman on Unsplash.The Australian skyline. Photo by Dan Freeman on Unsplash.

Rising interest rates will raise borrowing costs and dampen portfolio value of REITs in general, but Australia office REITs with premium assets are well placed for this development.

This was the assessment provided by S&P Global Ratings in a recent report on the sector, which focuses on seven office REITs under its watch.

“Heightened interest rates are an overall drag on the economy, and have led to rising financing costs and increasing capitalization rates for office REITs”, said S&P.

Dear members, please login to continue reading this article.

Don’t miss out on information beyond mainstream media reports that may impact your investments.
Login or sign-up for a free 25-day trial here. Why subscribe?

By Shariffa Al-Habshee

Shariffa joined REITsWeek in 2017, and monitors Asia-Pacific REITs for the publication.