NEW YORK--(BUSINESS WIRE)--Rising Treasury rates have resulted in increasing U.S. equity real estate investment trust (REIT) effective bond yields following the Federal Reserve's signaling of a gradual easing of loose monetary policy in the midst of economic recovery, leading to lower bond issuance volumes since quarter-end, according Fitch Ratings.
The median liquidity coverage ratio for selected U.S. equity REITs is 1.3x for the period July 1, 2013 to Dec. 31, 2015, down slightly from 1.4x for the period July 1, 2012 to Dec. 31, 2014 noted in Fitch's second quarter 2012 (2Q'12) liquidity special report. The band of liquidity coverage across major property sectors has tightened, with medians across the major property types ranging from 1.1x to 1.3x.
The full report, '2Q13 U.S. Equity REIT Liquidity Update: Regression toward the Mean' is available at 'www.fitchratings.com'.
Additional information is available at 'www.fitchratings.com'.
Applicable Criteria and Related Research:
--'Corporate Rating Methodology' (Aug. 5, 2013);
--'Criteria for Rating U.S. Equity REITs and REOCs' (Feb. 26, 2013);
--'2013 Outlook: U.S. Equity REITs' (Dec. 10, 2012).
Applicable Criteria and Related Research: 2Q13 U.S. Equity REIT Liquidity Update: Regression Toward the Mean
Corporate Rating Methodology: Including Short-Term Ratings and Parent and Subsidiary Linkage
Criteria for Rating U.S. Equity REITs and REOCs
2013 Outlook: U.S. Equity REITs