An end to write-downs across the commercial property portfolios held by listed landlords may come within months, as the interest rate cycle finally turns in favour of real estate investment trusts, according to Citi.

During the February reporting season, the REITs reported larger asset value declines than other recent periods, driven by large increases in the capitalisation rates applied to office and industrial portfolios. Capitalisation rates, or cap rates, are an industry metric akin to an expected investment yield, which typically moves inversely to values.