As you know I've been a fan of REITs and one in particular ARR. It's been a rough few weeks for REITs who have taken a beating because of the murmur about the Fed easing up on QE3. This would cause interest rates to go up and take away some of the stellar profit margins that have been making REITs attractive.
Even if interest rates go up the effect on the profit margins will be minimal. If you consider that these REITs can pay down some of their indebtedness and refinance to create a bigger profit margin. The advantage that REITs have is that their commodity is real estate. It's not like any other good or service that you would have trouble getting financing for.
I personally feel that this is a minor inconvenience. If you look at ARR when interest rates were higher the dividends were even higher than they are now. That tells you that the company knows how to restructure their books to create the profits that allow them to pay the kind of dividends that they have been paying.
I think that now is the time to stock up even more on ARR.
