In the November edition of the Forbes Real Estate Investor, I wrote an article titled Recession Ready SWAN Portfolio, in which I explained,
Well-capitalized balance sheets have reduced REITs’ exposures to interest rate movements. The limited use of debt to finance acquisitions in recent years, combined with the low level of market interest rates, has pushed interest expense as a share of net operating income to the lowest on record.”
That’s true, most equity REITs have been prudent in their approach to managing balance sheet risk, “providing a solid cushion against rising interest rates