Commercial property stocks and bonds are rallying as forecasters widely predict the end of a market slump triggered by a multi-trillion dollar debt burden.
Real estate investment trusts (REITs), the stock-market listed commercial building owners, have rebounded to levels last seen before U.S. lender Silicon Valley Bank collapsed in March 2023, sparking fears of a major credit crunch for landlords. (.FTFNER)
Commercial property bonds are also pricing better times ahead as flows into property investment funds pick up. The rally is pegged firmly on hopes that major central banks will cut interest rates from multi-decade highs, relieving intense pressure on landlords and their lenders and driving forecasts that buildings will stop losing value.
Real Estate Credit Investments Limited (LON:RECI) is a closed-end investment company that specialises in European real estate credit markets. Their primary objective is to provide attractive and stable returns to their shareholders, mainly in the form of quarterly dividends, by exposing them to a diversified portfolio of real estate credit investments.