Real estate investors have not done well since a real estate mogul became president-elect in the US. It would be ironic indeed if Donald Trump were to preside over a slump in the commercial property market, but is that likely?
Shares of listed real estate companies are down almost 4 per cent since election night. The sharp rise in US bond yields has made the dividends on real estate investment trusts look relatively less appealing, and there are fears that higher borrowing costs will choke off the rise in property prices. Meanwhile, the holders of bonds backed by commercial mortgages are also nursing losses, for similar reasons.
Read more: Financial Times
