Seeking Alpha

REIT investors turn from sector

  • "There was a time when people were overly exuberant about how long interest rates were going to stay low. That time is gone," says Cohen & Steers' Jason Yablon. Investors have pulled $728M out of real-estate mutual funds since May 15 (about the time interest rates started rising) vs. $42.8B in inflows into all equity funds, according to Lipper data. After outperforming the broader stock market for several years, REIT stocks have underperformed the S&P 500 for each of the last four months.
  • The best-performing REITs in Q3, say analysts, were those renting property with short-term leases. Those with longer-term leases - such as owners of health care facilities - suffer most as rates rise.
  • The only sectors showing gains in Q3 were self-storage (+7.45%) and hotel (+6.23%) REITs. "Self-storage was always regarded as the ugly stepchild of the real-estate industry, but our industry was always thought to be recession-resilient," says Extra Space Storage (EXR) CEO Spencer Kirk.
  • REIT ETFs: FRI, WREI, FTY, ICF, IYR, REM, REZ, RTL, PSR, KBWY, SCHH, RWR, VNQ, DRN, URE, DRV, SRS, REK, ROOF.
  • Self-storage: CUBE, PSA, SSS.
  • Hotel: AHT, CLDT, CHSP, DRH, FCH, HT, HPT, HST, LHO, PEB, RLJ, BEE, INN, SHO, SPPR.
Comments (5)
  • Cavalaw
    , contributor
    Comments (127) | Send Message
     
    This article seems to refer to Equity Reits only. not Mreits
    9 Oct 2013, 03:36 PM Reply Like
  • RWMostow
    , contributor
    Comments (1532) | Send Message
     
    Cavalaw-

     

    You are correct, eREITs only. For more info on Equity Reits, if you have not already done so, follow SA author Brad Thomas.

     

    -rwm
    9 Oct 2013, 07:51 PM Reply Like
  • Joe Springer
    , contributor
    Comments (2324) | Send Message
     
    Check out Whitestone WSR:

     

    http://seekingalpha.co...
    9 Oct 2013, 03:38 PM Reply Like
  • Copious28
    , contributor
    Comments (418) | Send Message
     
    Warren Buffett - "Be Fearful When Others Are Greedy and Greedy When Others Are Fearful"
    10 Oct 2013, 12:07 AM Reply Like
  • Brad Thomas
    , contributor
    Comments (11416) | Send Message
     
    Thanks - Here is my REIT newsletter: http://bit.ly/Z6Rh1J
    10 Oct 2013, 08:31 PM Reply Like
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