Most REITs likely won't feel rate hike impact until 2025: CIBC
BNN Bloomberg
Many real estate investment trusts will be largely insulated from climbing interest rates for the next couple of years, a report from CIBC Capital Markets said Tuesday.
With the Bank of Canada’s policy rate hitting 1.5 per cent in June and set to rise further, higher debt servicing costs could eat into companies’ bottom lines. Companies that loaded up on cheap debt during the pandemic to fund growth projects could be hit particularly hard.
However, REITs appear to be well-positioned to handle rising rates because of how they typically structure their debt, meaning many will be partially protected from the impact of interest rate changes until 2025-26, according to CIBC.
“REITs typically only refinance their debt as the mortgage terms come due. As a result, during the low interest rate environment of the COVID-19 pandemic, most REITs were only able to refinance a portion of their maturing debt,” the analysts said.
Canada’s federally backed farm lender is offering financial aid to farmers, agricultural businesses and food companies hit by the spike in fertilizer and energy prices, it said on Friday.
Jay Allen is a fan of U.S. President Donald Trump, and voted for him on the belief that the Republican would cut taxes and trim regulations, helping his manufacturing business in northeast Arkansas.
Another climb for oil prices sent the U.S. stock market sharply lower, as hopes collapsed for a possible cut to interest rates by the Federal Reserve.
Global oil prices will continue to rise as the war in the Middle East continues and the Strait of Hormuz remains inaccessible, according to an energy expert.
Global oil prices will continue to rise as the war in the Middle East continues and the Strait of Hormuz remains inaccessible, according to an energy expert.
Facing a $1.4 billion deficit shortfall, the provincial government says its large-animal vet service will be privatized over the next three years.
Facing a $1.4 billion deficit shortfall, the provincial government says its large-animal vet service will be privatized over the next three years.
Jurors wade through daunting evidence in high-stakes Meta trial about social media risks to children
A stream of testimony and evidence has been presented in a New Mexico case exploring what Meta knew about the effects of its platforms on children.
Markets in Canada and the U.S. continued to trade lower while oil went up late morning on Friday as inflationary fears prevailed among investors.
Gold prices fell by 1.8 per cent on Friday as the dollar strengthened on a report that the United States will deploy extra troops in the Middle East, fanning concerns of higher oil prices, inflation, and with it, elevated interest rates.
Canada’s federally backed farm lender is offering financial aid to farmers, agricultural businesses and food companies hit by the spike in fertilizer and energy prices, it said on Friday.
Statistics Canada says retail sales were up 1.1 per cent at $70.7 billion in January, led by sales at motor vehicle and parts dealers.
As Qatar reels from an Iranian attack that has hobbled its giant natural gas company, its boss, who doubles as the country’s energy minister, says he had warned officials and executives of just such a danger should Iran’s own sites be hit.