(Bloomberg) -- Shares of European real estate companies slumped to their lowest level in almost 12 years amid increasing worries about financing due to the surge in interest rates.

The Stoxx 600 Real Estate Index — which tracks companies like German residential landlord Vonovia SE, UK office firm British Land Co. Plc and shopping mall group Unibail-Rodamco-Westfield — fell 2.0% on Monday as bond yields edged up, putting it on course for its lowest closing price since January 2012. 

Germany’s 10-year yield was up seven basis points to 2.96% on Monday, while the US Treasury equivalent crossed the 5% threshold for the first time in 16 years.

The real estate index is now down 14% year to date. Faced with both a decline in asset values and rising debt-servicing costs, some firms may need to raise capital to secure their balance sheets, analysts have warned.

“The concerns center on property values where there is considerable uncertainty and minimal transactions to support prices,” said Bloomberg Intelligence property analyst Sue Munden. “This situation is unlikely to change until there is some visibility that interest rates have peaked.”

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