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iShares Residential Real Estate Capped ETF (REZ)

- NYSEARCA
  • Thu, Apr. 30, 3:15 PM
    • A big rise in interest rates early in the session made for a good excuse to sell REITs, but - with the averages sharply lower - rates have reversed course. Still, the sector can't catch a bid, with many of the bigger names down way more than the broader market.
    • Equity REITs: Realty Income (O -2.3%), Health Care REIT (HCN -3.2%), Ventas (VTR -3.2%), HCP (HCP -3.1%), Equity Residential (EQR -2.6%), Silver Bay Realty (SBY -2.5%), General Growth Properties (GGP -2.4%), Retail Opportunity (ROIC -3.9%), Boston Properties (BXP -2.4%), Hospitality Properties (HPT -2.9%)
    • Mortgage REITs: Armour Residential (ARR -5.6%) - which reported another weak quarter overnight, Two Harbors (TWO -1.1%), Western Asset (WMC -1.3%), Arlington Asset (AI -2.8%), PennyMac (PMT -1.5%). When things get tough, money does have a tendency to flow into the sector giants though: Annaly Capital (NLY -0.4%) and American Capital Agency (AGNC +0.3%) are notable outperformers on the session.
    • ETFs: IYR, VNQ, DRN, URE, REZ, SCHH, ICF, SRS, RWR, KBWY, DRV, REK, FRI, FTY, PSR, FREL, WREI
    | 43 Comments
  • Oct. 13, 2014, 4:19 PM
    • Both equity and mortgage REITs saw plenty of buying as nearly all of the rest of the market was lit up bright red, and Treasury ETFs signaled a sharp drop in yields when government bonds reopen for trade tomorrow (closed this session for Columbus Day).
    • A sampling of equity names: Senior Housing Properties (SNH +1.2%), Medical Properties Trust (MPW +1.4%), Gramercy Property Trust (GPT +1.7%), Equity Residential (EQR +0.7%), Inland Real Estate (IRC +0.9%), Sovran Self Storage (SSS +1.1%), Highwoods Properties Trust (HIW +1%).
    • One equity REIT sector in the red along with the rest of the market is lodging amid worsening Ebola fears: Ashford Hospitality Trust (AHT -2.9%), Sunshine Hotel Investors (SHO -1.4%), LaSalle Hotel Properties (LHO -1.5%), Summit Hotel Properties (INN -1.5%).
    • Mortgage REITs: American Capital Agency (AGNC +1.4%), CYS Investments (CYS +2.2%), Invesco (IVR +1.1%), American Capital Mortgage (MTGE +1.5%), Western Asset (WMC +1.1%).
    • ETFs: IYR, VNQ, REM, MORL, MORT, DRN, URE, REZ, SRS, RWR, SCHH, ICF, ROOF, DRV, KBWY, RTL, REK, FRI, FTY, PSR, IFNA, FNIO, WREI
    | 5 Comments
  • Jan. 31, 2014, 10:26 AM
    • 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
    | 5 Comments
  • Jan. 10, 2014, 2:44 PM
    • The broad averages are struggling following the jobs number, but the big decline in interest rates (the 10-year Treasury is now off 10 bps to 2.87%) has the equity REIT sector lit up bright green.
    • Ventas (VTR +4.4%) is having the biggest day, continuing to cruise through a couple of early-year downgrades (latest was Barclays on Wednesday). Among those also higher: National Retail Properties (NNN +3.1%), Realty Income (O +1.6%), Health Care REIT (HCN +2.5%), HCP (HCP +3.8%), RAIT Finanical (RAS +1.4%), Apartment Investment (AIV +2.9%), General Growth (GGP +1.6%), Inland Real Estate (IRC +1.5%), Government Properties (GOV +1.6%), American Campus (ACC +1.7%).
    • Relevant ETFs: IYR, VNQ, REM, DRN, REZ, URE, SRS, RWR, ICF, SCHH, DRV, ROOF, KBWY, RTL, REK, FRI, FTY, PSR, FNIO, WREI
    | 3 Comments
  • Jul. 22, 2013, 2:58 PM
    Homebuilders (ITB -1.4%) tumble across the board after existing June home sales slipped a seasonally adjusted 1.2%. Rising mortgage rates were supposed to boost short-term demand as potential buyers aimed to lock in mortgages before rates went even higher, but the June report showed no sign of it. KBH -2.6%, RYL -2.5%, MTH -2.5%, DHI -2.2%, MDC -2.2%, HOV -2%, LEN -2%, PHM -1.6%, TOL -1.4%.
    | 3 Comments
  • Jul. 5, 2013, 10:07 AM
    The homebuilders (XHB -1.3%) take today's sharply higher interest rates hard. Lennar (LEN -3.9%), D.R. Horton (DHI -3.3%), Pulte (PHM -3.1%), Toll Brothers (TOL -3.3%).
    | 1 Comment
  • Apr. 25, 2013, 3:24 PM
    The Homebuilder ETF (XHB +1.2%) gains after PulteGroup (PHM +5.5%) reported Q1 closings up 23%, with the average selling price up 10%. Meritage Homes (MTH +1.1%) yesterday reported a 17% increase in prices, while Ryland Group (RYL +6.7%) last night said its average price rose 8.2%. "Housing demand is greater than the supply of homes available for sale in many of the areas where we operate," says Meritage CEO Steven Hilton.
    | Comment!
  • Mar. 22, 2013, 1:05 PM
    The mREITs are back in favor after the Fed's QE∞ hit interest margins in Q4. A widening yield curve helps, but managements weren't powerless either. Share buybacks below book and altered business plans - Annaly's purchase of CreXus for one, others upping exposure to non-agency RMBS another - are sitting well with investors. Up 2.1% today, NLY is trading above book for the first time in a long time.
    | 2 Comments
  • Feb. 7, 2013, 10:54 AM
    CYS Investments (CYS -4.1%) leads the mortgage REIT sector lower after last night's earnings. "The opportunities ... are quite a bit narrower," says CEO Kevin Grant on the earnings call (transcript), with the net interest spread of 108 bps "a pretty good indicator" of such. On a hopeful note, he thinks D.C. may be turning its focus to the non-agency market, which would take some pressure off agency players such as CYS.
    | 1 Comment
  • Jan. 17, 2013, 9:25 AM
    A check on the homebuilder ETFs finds both XHB and ITB about 1% higher premarket following the big housing starts number. It's no news multi-family starts were of particular strength (longer-term chart), and Lennar (LEN) got on board this week, announcing its entry into that segment of the business.
    | Comment!
  • Nov. 7, 2012, 9:40 AM
    It's a jittery mortgage REIT sector as last night's election assures the Fed will continue to strangle the leveraged operators' net interest margins. Annaly (NLY -2.8%) - the purest of the pure-play agency REITs - still reeling from Monday's poor earnings, leads to the downside. AGNC -2%, TWO -2.3%, HTS -2.1%.
    | 27 Comments
  • Nov. 6, 2012, 2:44 PM
    "The active involvement of policymakers in the mortgage market ... has introduced unique challenges for all investors," says Annaly (NLY -3.7%) CEO Wellington Denehan-Norris on the earnings call (transcript), not hiding her frustration with all the meddling. Credit Suisse cuts its price target on NLY to $16 from $17. (earlier)
    | 1 Comment
  • Oct. 31, 2012, 10:23 AM
    In addition to solid earnings and a stock repurchase announcement, American Capital Agency (AGNC +2.5%) basks in the glow of an upgrade to Buy from Hold at Wunderlich. The entire mREIT sector is lit up bright green. MORT +1.6%.
    | 4 Comments
  • Oct. 17, 2012, 9:06 AM
    Several homebuilders get downgraded at Raymond James, among them TOL, MDC, and RYL. All three - along with the rest of the sector - are showing solid premarket gains, however, as the strong housing starts number controls the tape. XHB +2.1% premarket.
    | 1 Comment
  • Oct. 17, 2012, 8:57 AM
    Annaly (NLY) is upgraded to Buy from Neutral at Compass Point following last night's buyback announcement, "a smart reallocation of capital ... (and) a floor for the share price." Noting likely high prepayment rates, Compass Point says the Fed's continued bid for MBS should keep book values - for Annaly and the rest of the sector - strong. Shares +2.2% premarket.
    | 11 Comments
  • Oct. 10, 2012, 9:46 AM
    Mortgage REITs continue to slide - NLY -1%, AGNC -2%, HTS -2.3%, to name 3 - the sector revaluing itself for what must surely be significant dividend cuts. The Fed's MBS purchases - likely to help book values and dividend maintenance in the short run - are vaporizing net interest margins. Absent a big jump in leverage, returns must fall.
    | 58 Comments
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REZ Description
The iShares FTSE NAREIT Residential Plus Capped Index Fund seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the FTSE NAREIT All Residential Capped Index.
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