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| The Effect of Interest-Rate Movements on
Real Estate Investment Trusts Author: Glenn R. Mueller and Keith R. Pauley Start Page: 319 Abstract: The rising
interest-rate environment in early 1994 in the United States raised questions by investors
as to how REITs will react to interest-rate movements. This study analyzes the movement of
REIT price changes during past interest-rate cycles. The results indicate that REIT price
movements have a low correlation with changes in interest rates and a lower correlation
with interest rates than with movements in the stock market as a whole. The findings lead
to a call for research into other areas in order to ascertain the determinants of REIT
price movement. |
