2007-02-09 01:46:23 · 2 answers · asked by Anonymous in Business & Finance ➔ Investing
Just like any stock, the perception by investors that the company is becoming more valuable creates increased buying interest, which in turn causes the share price to rise. There are different kinds of REITs, so different things create perceived value in different REITs.
2007-02-09 01:58:51 · answer #1 · answered by LongArm 3 · 0⤊ 0⤋
Value of a REIT is increased by 1) increase of rents charged by the REIT; 2) increase in the selling price of similar properties/buildings so the appraised value of the REITS holdings are increased; 3) decrease in interest rates which decreases the borrowing cost (mortgages) of the REIT; 4)increase of efficiency therefore decrease in the cost of operating the business.
2007-02-09 10:57:37 · answer #2 · answered by gosh137 6 · 0⤊ 0⤋