After an optimistic and fundamentally-driven positive start to the year in January, interest-rate headwinds that began in the United States in January broadened globally. These headwinds rocked listed property markets in February with essentially all of January’s gains erased. During February, Asia Pacific property stocks fell 7.2 percent, which was slightly more than global property stocks, at –6.3 percent. As such, the Asia Pacific region is down 0.3 percent over the past two months, which is better than global property stocks, at –3.8 percent. As the listed property sector has witnessed over the past few years, the spectre of higher interest rates has been impacting performance even though a stronger global economy — one of the main reasons for the increase in rates — benefits real estate fundamentals and should serve to extend the current period of positive property fundamentals. This is not to belittle the impact, however, of rising rates in certain segments such as r