Rate cut a ‘lunch bag letdown’ for REITs, says BMO analyst

News Snapshot:

Daily roundup of research and analysis from The Globe and Mail’s market strategist Scott Barlow BMO real estate analyst Michaeil Markidis described the ‘lunch bag letdown’ of the first Bank of Canada rate cut for REITs, “The S&P/TSX Capped REIT Index was down 1.5% for the week ended June 14, despite a 18bps decline in the 10-year GoC (to 3.28%). Notable outperformers included PMZ (+0.7%) and DIR (+0.5%); outliers at the other end of the spectrum were AP (-5.7%) and MHC (-4.3%). Canadian REITs continue to work through a prolonged period of adjustment to higher interest rates. The simple average...