BRT Realty Trust
I thought interest rates were headed to zero. I was wrong.
I sold my holdings in BRT Realty today. They are a residential apartment REIT which is based in New York but most of its apartments are located in the South Eastern USA. As with most REITs, they have high borrowing costs as there is roughly a 4:1 debt to equity ratio, so their funds from operations will likely be impacted as interest rates go up.
I bought them thinking interest rates will go down and reduce the impact of their debt on their cash flow.
