You would think yield would increase if a REIT ETF drops to record lows. Clearly not!
Force Majeure terms will be highlighted in contracts, highly unlikely retail tenants will follow through on rental payments which explains why distributions are evaporating.
Valuations of underlying real estate assets are also going to be written off.
During the GFC Australian REITs were geared just over 50%, today they are c.30% geared. The market believes there will be some tectonic shifts in commercial real estate demand and construction in the future hence the broad based sell off.
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