Notable Short Activity in Three REIT Stocks

There has been a significant rise in American Real Estate stocks, notably three in particular - Home Properties Inc (HME), Vornado Realty Trust (VNO) and Prologis (PLD).

HME, which focuses on the Southeast Florida markets of the United States, has seen its shares on loan rise from 17% to 23% of the company since October 23rd, as the share price continues to drop - from $60 to $25. This was preceded by a large amount of short covering; down from 25% to 17% between late September and late October.

Vornado has 12.54% of its shares on loan, up from 8% in October and 10% in late February, again, as the share price continues to fall - down from $100 to $30 since late September. The company was also down 5% on Friday. Steven Roth, the trust's CEO said it may take as long as four years for commercial real estate to catch up with supply.

Prologis, which operates industrial distribution properties, has seen the most dramatic rise in the amount of its shares on loan, up from 8% of the company in October to 21.5% now. The share price has fallen from $45 to $5 since September, with investors coming slightly late to the trade, increasing the borrow after the fall in price, as you can see from this graph.

Comments

[anarchist:]

and?

Mar 08 01:52 PM

[BigOlDave:]

Anarchist is right: you should always reach a conclusion for us. We might not agree, but we need a bone to gnaw on.

Mar 08 05:39 PM

[REIT Corrector:]

You've got to be kidding me -- Home Properties focuses on Southeast Florida markets? She should spend more time checking her facts than preparing for her blog photo.

Home Properties is concentrated between Baltimore and Boston and has less than 5% of its units in Florida. It is generall considered a 'class B' northeast corridor apartment REIT.

Mar 08 09:39 PM

[carlosschw:]

As for me, I like Jessica's analysis just fine. The blog photo is just a bonus. If there is anything lacking it is a full-length shot!

Mar 08 11:05 PM

[REIT Guy:]

A total of 1.8% of 4Q08 NOI was in south Florida. Please look at the HME's supplemental report before saying that the company is focused on South Florida!

Mar 09 09:51 AM