Investors have taken the knife to industrial property goliath Goodman, selling the shares down 6.8 per cent in morning trade - to a low of $22.13 - amid concerns of rising costs for warehouses and some new supply coming into the market.

Share traders said the sell-off comes amid news that online giant Amazon, of which Goodman is one of its main landlords, reported its first quarterly loss since 2015 due to lower online sales and said it was also facing increased costs, with “ongoing inflationary and supply chain pressures”.

Amazon reported its March quarter results late Friday AEST, saying its revenues grew at what analysts termed a “sluggish” 7 per cent in the three months to $US116.4 billion ($A165.4 billion), being its slowest growth rate in nearly two decades.

For the same quarter last year, Amazon’s sales increased 44 per cent to $US108.5bn. It lost $US3.8 billion for the quarter compared with a profit of $8.1bn during the same period a year ago.

In the report the Amazon CEO Andy Jassy said: “the pandemic and subsequent war in Ukraine have brought unusual growth and challenges”.

Brian Olsavsky, Amazon’s chief financial officer, added that incremental costs from inflation, warehouse capacity exceeding demands and other issues had cost the company about $6 billion over the quarter.

Another fund manager added that Goodman is also trading at a premium to its net tangible asset and that has led to some selling as the market prepares for rate rises. Charter Hall has also been sold down by 4.5 per cent.

General equity traders look at the real estate investment trusts as a yield play, but there are some concerns as to what a rise in rates will mean for the underlying property sector.

In a client report from Morgan Stanley analysts, it says some REITs with higher debt, such as retail landlord Scentre and the Charter Hall Long WALE REIT (CLW), maybe hard hit when rates rise - with one predicted tomorrow.

The note says Scentre has hedged 50 per cent of its debt book, and CLW at 56 per cent.

“These are among the lowest in our coverage universe. If base rates increase 100 basis points, we calculate the additional interest expense relating to the unhedged portion of debt would wipe 5 per cent, and 6.4 per cent respectively off our forecasts for Scentre and CLW’s fiscal 2023 funds from operations,” the Morgan Stanley note says.

“Other REITs in our analysis have average hedging of around 70 per cent, and interest cover of around 7 times, so while rate rises are unhelpful to the sector as a whole, Scentre and CLW have the tough combination of low hedging and low-interest cover.”