All REITs and ARR is a REIT, borrow money from the FED. ARR borrows money at 1.75% to finance a new business project, "ACME shopping mall". ACME agrees to pay ARR 3% for the loan. The difference between the 3% and the 1.75% is gross income into ARR. After all the expenses ARR spends from the 1.25% gross amount, the net profit to the share holders is say 25%. That is how we make our dividend. IF ARR has to pay the FED 2%, then the gross profit is less, and our dividend suffers. When the dividend suffers, big investors pull out leaving us small guys with shares worth less than we paid for them.
So....10 year going up is not good from our prospective.
BUT, as long as we are making nice monthly dividends and making monthly money or reinvestments if you choose, we are happy campers. Expect dips and expect upward days as part of investing over the long haul. These past two months have been wonderful.
Sentiment: Strong Buy
You know this how? Or are you assuming? Fair question, fair answer please.