There is a cold wind in the REITs market as expectations for a rate cut have weakened, with the U.S. Federal Reserve (Fed) reducing the number of key rate cuts this year by two times from three times.
According to the Korea Exchange on the 27th, SK REITs' stock price, which rose 10.20% this year, has fallen 3.12% over the past month. Koramco Life Infra REITs has also gained 8.79% since the beginning of the year, but has fallen 1.33% over the past month.
Macquarie Infrastructure rose 3.77% year-on-year, but fell 2.40% over the past month, while Shinhan Alpha REITs rose 0.52% this year, but fell 4.94% over the month.
REITs are sensitive to changes in interest rates. Since assets are managed through borrowing, the burden of borrowing costs can increase if interest rates rise or expectations for a cut weaken. Major REITs exchange-traded funds (ETFs) are showing a similar trend. In the past month, 'TIGER US MSCI REITs (Synthetic H)' has fallen by 2.76%. During the same period, "WON Korea Real Estate TOP3 Plus" fell 1.86%.
In Korea, the Homeplus crisis acted as a factor that dampened REITs investment sentiment. Shinhan West Tendrits, which invested in stores leased by Homeplus, fell 4.83% in a month, raising investor anxiety. In terms of supply and demand, the selling of foreigners and individual investors was also noticeable.
Experts diagnosed that the REITs market may slow down in the short term, but there is a high possibility of recovery in the mid to long term.
[Reporter Jeong Yoojung]
