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mREIT valuation & interest rate risk

In today’s hunt for yield mREITs seem to be an increasingly popular choice. The sector offers yields in the range of 13%. With even high yield bonds trading down to yields of ~7% an almost doubling of potential yield is compelling. But have investors chased yield too much and what happens if rates change dramatically? Today I want to do a check on the valuation of mREITs in general and look at the potential impact of changing interest rates on the business. First, lets take a look at valuation. I’ve covered mREIT basics on the blog before so if you’re … Continue reading

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