REITs Have Complicated Relationship Status With Interest Rates

Forbes, July 10, 2017–Sam Diedrich
As an income-oriented sector, real estate investment trusts can be negatively affected by interest-rate increases. As interest rates rise, all else being equal, the income produced by REITs at the current stock price is worth less, and so prices generally fall in order to increase the yield of those stocks relative to other income producing instruments.