johnthebear

Mortgage REITs: Ignore GAAP, It's All About the Cash

While REITs without mortgages (all cash ownership) might not be affected directly by the margin calls mentioned above, it is but a matter of time till asset sales which reflect higher capitalization rates can have an effect when the assets of equity REITs are marked to market, using both comparable sales as well as the income approach to value.

At that point in time, the speculative rent increases and assumed appreciation should knock the socks off all the REITs.