Supposedly only mortgage reits suffer when interest rates rise. From an article I found a little while age:
"Mortgage REITs Drop When Interest Rates Rise
Finally, the third category of stocks that I checked were mortgage REITs. Unlike property owners Vornado Realty and Simon Property, mortgage REITs invest in mortgages and other loans that are secured by real estate. They profit by investing funds borrowed at relatively low short-term rates in mortgages that pay higher long term rates. Analyzing mortgage REITs Annaly Capital Management, Inc. (NLY) and MFA Financial, Inc. Real Estate Trust (MFA) , I found that unlike property REITs, when interest rates rose, mortgage REIT earnings and dividends consistently dropped, and vice versa.
One reason might be that rising interest rates reduce the value of a mortgage REIT’s mortgage portfolio, forcing the REITs to write-down the value of their assets, cutting earnings, and hence, dividends. Based on my admittedly skimpy study, only mortgage REIT investors are likely to suffer when interest rates rise. Property REIT and utility stocks should enjoy a good run.
Did I cherry pick these examples to prove my preconceived ideas? Nope. My main problem was finding stocks trading since 1999 to use as examples, especially for mortgage and property REITs, but not so much for utilities.
Maybe the institutional investors will buy back in again. If NRF follows through on the buyback and the double whammy of having tax consequences on a losing stock have passed, it may be more attractive now.