The Globe and Mail reports in its Saturday edition that many real estate investment trusts are feeling the pinch from the steep increase in interest rates. The Globe's John Heinzl writes that in addition to increasing REITs' borrowing costs, rising rates have caused their unit prices to fall, which has made their yields more competitive with the higher returns now available from bonds and guaranteed investment certificates. Two of the portfolio's REITs -- Choice Properties and SmartCentres -- have been hit especially hard, dropping 9 per cent and 8 per cent, respectively, year-to-date. Still, nothing has fundamentally changed in the long-term outlook for either REIT. Both have solid tenants, with Choice's portfolio anchored by grocery and drug stores in the Loblaw family and SmartCentres benefiting from Walmart, which accounts for more than one-quarter of rental revenue. Occupancy levels also remain high, at more than 97 per cent for both REITs. Choice and SmartCentres have deep development pipelines that include retail, residential and industrial properties. Choice and SmartCentres now yielding 5.6 per cent and 7.6 per cent, respectively, and Mr. Heinzl is buying another 40 units of each REIT for his model portfolio.