Although the annual rent reviews will help negate the rising...

Although the annual rent reviews will help negate the rising interest rates, I believe there's still more potential pain by the increase in all other costs.

Some examples I am thinking of:
1. Capital works - we all know how much building materials have increased in recent times --> therefore, when COF or any REIT for that matter looks to do refurbishments, fitouts or capital works projects, this is going to come at a hefty cost, which will come right out of a property's earnings
2. Outgoings - not too sure on what % of leases are gross or net but outgoings such as land tax, water rates, electricity are all costs that are continuing to climb and can potentially hurt the bottom line
3. Lease incentives - working in the industry, i've seen first hand that positive leasing outcomes is a big headline, however, a true reflection of how good a leasing outcome is more than just the rent, but the lease incentive for the space. Recently we've seen incentives increase a decent amount, which hurts the property returns slightly as REITs are paying more for tenants to sign leases.

Just my 2 cents worth of course, I am still very keen on REITs like COF and their long term prospects. There will be turbulent times ahead but as an investor i'm hoping to keep a level head and tough it out