Problems Affecting Individual REITs

It's axiomatic that any public company can stumble, causing its stock to perform poorly; after all, it's a very competitive and complex world, and companies are led by fallible human beings. A REIT organization is no different. Let's look at some types of risks that can affect the enterprise values and stock prices of specific REITs.

Local Recessions

We discussed recessions earlier in the context of problems that may affect the entire REIT industry. But local recessions can also impact specific REITs. Such recessions can hurt real estate owners even when supply and demand for space in a particular market had previously been in equilibrium—or even unusually strong. A retail property, for example, located in ...

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