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Interest rates play a significant role in the performance of REITs. *When interest rates rise, borrowing costs increase, which can reduce the profitability of new acquisitions and developments*. Higher interest rates can also put downward pressure on REIT stock prices, as investors may seek higher yields from other investments. Conversely, lower interest rates can make REITs more attractive by reducing borrowing costs and increasing dividend yields. Monitoring the Federal Reserve's monetary policy and paying attention to interest rate forecasts is essential for understanding the potential impact on iAmerican Healthcare REIT's financial performance.
