REITs were already down on the week prior to the rate hike announcement on Wednesday afternoon, but the Fed's more-hawkish guidance for next year put a further hurt on the sector.
Buyers are emerging this morning, with VNQ +1.2% and IYR +1% vs. the S&P 500's 0.2% advance.
There are a number of sell-side upgrades hitting today, but also some downgrades. Dividend hikes help too, and leading gainers this morning is Urstadt Biddle Properties (UBA +8.5%) after last night's results and dividend hike. CubeSmart (CUBE +1.8%) jacked its payout by 28.6%.
Healthcare Realty Trust (HR +1.5%) and Healthcare Trust of America (HTA +1.8%) were initiated with Buy ratings at Jefferies.
Gramercy Property Trust (GPT +2.9%) announced a big portfolio acquisition.
Other movers: Realty Income (O +1.8%), National Retail (NNN +2.1%), Omega Healthcare (OHI +1.8%), Essex Property (ESS +2%), Weingarten Realty (WRI +1.7%), Life Storage (LSI +1.5%), Government Properties (GOV +3.3%), LaSalle Hotel (LHO +1.5%), Stag Industrial (STAG +1.1%), Eastgroup (EGP +1.9%)
Top 10 Holdings as of 6/30/2016: Middlesex Water Co (MSEX): 1.83792%, Chesapeake Utilities Corp (CPK): 1.83185%, J&J Snack Foods Corp (JJSF): 1.81791%, Northwest Natural Gas Co (NWN): 1.80509%, California Water Service Group (CWT): 1.80402%, Andersons Inc (ANDE): 1.7911%, Connecticut Water Service Inc (CTWS): 1.78364%, York Water Co (YORW): 1.76417%, Urstadt Biddle Properties Inc Class A (UBA): 1.76156%, Spire Inc (SR): 1.75542%
The company is selling 2.75M shares of stock, with an underwriter greenshoe for another 412.5K shares. Among the uses for the proceeds will be paying off any borrowing associated with the closing of the purchase of the Newfield Green Shopping Center in Stamford.
The sector's had a nice run this year as, once again, higher interest rates have failed to materialize. A number of sell-siders are heading to the sidelines today on selected names today.
JMP Securities downgrades American Campus Communities (ACC) to Market Perform from Outperform. Citigroup downgrades Aimco (AIV -0.7%) to Neutral from Buy. Mizuho cuts LTC Properties (LTC -1.4%) to Neutral from Buy. Capital One downgrades Stag Industrial (STAG -0.7%) to Equal Weight from Overweight. Deutsche cuts Urstadt Biddle Properties (UBA -0.8%) to Hold from Buy.