Global property stocks could suffer from added pressure from bond yields, economic uncertainty and rate hikes next year, according to a recent 2017 outlook report from Morningstar.

Public real estate companies within the investment researcher’s coverage have been marginally undervalued of late, trading 7% lower than fair value estimates. Analysts expect property stock performance will vary on a global basis within the next 12 months, taking into account the likelihood of higher interest rates leading to increased volatility in major markets, higher cap rates and rising property prices, GlobeSt reports.

Analyst Edward Mui did note that property stocks’ underlying performance remains healthy, as REITs continue to reposition their portfolios to raise capital. However, in the US, levels of new supply slated for next year, coupled with economic uncertainty surrounding President-elect Donald Trump’s future policies, leaves a lot unknown. The Fed raised rates this quarter, and anticipates increasing them three times next year, an action that could revert money that flowed into REITs during the low interest rate environment, Mui said. [GlobeSt]