rate rise slashed earnings and dividend
ACRE deteriorated once interest rates started rising, with earnings taking a massive hit and the dividend being slashed by more than half—supporting his broader view that most mortgage REITs are a bad high-yield choice.
Arca Capital's earnings took a massive hit as interest rates rose, leading to a dividend cut of more than half, directly supporting the view that mortgage REITs reliant on spread income are structurally exposed to rate upturns.
"If I Had to Start My High Yield Dividend Portfolio All Over, I'd Do This"