What's working? The REITs


Working today - and for the whole month of January - as the broader market sells off are the REITs. The sector - both the equity REITs and mREITs - had been punished in 2013 as rates moved higher starting last May, but another four basis point decline this morning brings the 10-year Treasury yield down to 2.66% after starting the year at about 3%.

At least for the mREITs, nearly all put in what may turn out to be major bottoms late in 2013 amid jitters over year-end tax-loss selling and the commencement of the taper - sell the rumor, buy the news ... indeed.

Mortgage REITs: Annaly (NLY +1.1%+7.4% YTD, American Capital (AGNC +1.3%+9.1%, Invesco (IVR +0.5%+6.7%, Anworth (ANH +0.6%+10.9%, Apollo Residential (AMTG +0.7%+9.1%, AG Mortgage Investment (MITT +0.6%+5.6%.

ETFs: REM, MORT, MORL

Equity players: Realty Income (O +0.5%+9.6% YTD, National Retail (NNN +0.7%+9.8%, AvalonBay (AVB +0.8%+4.1%, Public Storage (PSA +0.6%+4.9%, Boston Properties (BXP +0.2%+7.8%, Liberty Trust (LRY +1%+7.9%.

Related ETFs: IYR, VNQ, REM, DRN, REZ, URE, SRS, RWR, ICF, SCHH, DRV, ROOF, KBWY, RTL, REK, FRI, FTY, PSR, FNIO, WREI

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Comments (5)
  • Len Marx
    , contributor
    Comments (110) | Send Message
     
    The investor in equity REITS needs to 1st satisfy himself that the lenders will rollover debt maturities which may rely upon the % that EBITDA-recurring Cap EX is to income producing real estate at original cost.
    31 Jan 2014, 10:52 AM Reply Like
  • DeepValueLover
    , contributor
    Comments (11225) | Send Message
     
    The strength in the mREITs should not come as a surprise to anyone. I'd bet on them vs. Amazon or Facebook any day of the week.

     

    The dividend ratio is not bad either.
    31 Jan 2014, 11:06 AM Reply Like
  • Javimanic
    , contributor
    Comments (292) | Send Message
     
    will those who staid the course and reinvested/held during the seeming bottom be rewarded down the line? I guess I feel alittle spoiled now that I was able to buy at low levels all Fall etc. Getting harder to keep reinvesting after some are up 15% for the last months now.
    31 Jan 2014, 02:51 PM Reply Like
  • pagreen1966
    , contributor
    Comments (661) | Send Message
     
    Been loading up with (REM) the last few months. Been pushed so low the yield is now over 15%. Prefer this play to individual companies, just like I prefer (GGN) to individual gold miners.
    31 Jan 2014, 04:53 PM Reply Like
  • jbbson
    , contributor
    Comments (839) | Send Message
     
    I hung in there and reinvested dividends. Don't know what the future will bring but I think the chances of dividend increases is now greater than any more cuts. Those shares bought after the cuts will look very nice when dividends increase.
    2 Feb 2014, 01:16 PM Reply Like
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