Fitch: Bank Exposure Risk Increasing for U.S. REITs

(The following statement was released by the rating agency)

Link to Fitch Ratings' Report: Trends in U.S. Equity REITs Unsecured Lines of
Credit (Favorable Trends Continue Amid Capital Markets Volatility)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=882177

NEW YORK, June 02 (Fitch) U.S. REITs are still taking advantage of a favorable
bank lending environment, though signs of more risk are emerging according to
Fitch Ratings in a new report.

Unsecured revolving lines of credit remain a critical capital source for REITs
and are used primarily to fund acquisitions and development before tapping the
debt or equity markets. Fitch expects renewals will remain favorable to
borrowers for the foreseeable future as spreads decrease and commitment sizes
increase. That said, debt capital structure risk is inching up.

'There has been an increase in revolver draws brought on primarily by recent
capital market volatility,' said Managing Director Steven Marks. 'Coupled with
higher term loan usage, this is a clear sign that REITs are relying more on bank
capital.'

'Bond market volatility is also causing several lower rated REITs to accept
unfavorable pricing when they come to market with new debt or pull debt
offerings altogether and access the term loan market,' said Marks. Higher rated
REITs haven't been immune to the recent bond market volatility, having to use
unsecured term loans to pay off revolvers to navigate through capital market
turbulence.

'Trends in U.S. Equity REITs Unsecured Lines of Credit' is available at
'www.fitchratings.com' or by clicking on the above link.

Contact:

Daniel Kornblau

Associate Director

+1-646-582-4946

Fitch Ratings, Inc., 33 Whitehall Street, New York, NY, 10004

Steven Marks

Managing Director

+1-212-908-9161

Media Relations: Sandro Scenga, New York, Tel: +1 212-908-0278, Email:
sandro.scenga@fitchratings.com.

Additional information is available at www.fitchratings.com.

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