By Steven Marks, Head of U.S. REITs, Fitch Ratings
Terms for equity REITs have improved in recent months, and borrowing spreads have been increasing from their low points in previous years.

This follows REITs lowering their leverage over the past two years, primarily by raising equity to repay amounts outstanding under revolving lines of credit. Drawn amounts under revolving credit facilities now account for less than 5 percent of all debt that equity REITs hold on their balance sheets.

The news about shrinking debt is accompanied by a surge in REITs’ popularity with investors, The Wall Street Journal reported. Americans, the paper reported, want to have a piece of it called “the real estate industry's few bright spots … professionally managed property portfolios.”