Strong session for REITs as rates fall back to 2017 low

|By:, SA News Editor

The major averages are modestly lower, but the equity REIT sector as represented by IYR +0.6% and VNQ +0.8% is seeing a bid as the 10-year Treasury yield slips a full six basis points to 2.30%.

Roughed-up shopping center names are among the strongest gainers: Retail Opportunity (ROIC +2%), Kimco (KIM +1.7%), Whitestone (WSR +1.6%), CBL (CBL +2.6%), Kite Realty (KRG +1.7%).

Also in the green are the mortgage REITs (REM +0.7%), though Wells Fargo today downgraded a trio of big names, noting considerably less favorable risk/reward as the stocks now trade pretty close to book value. Those three - AGNC Investment (AGNC), Two Harbors (TWO +0.9%), and CYS Investments (CYS +0.4%). Other players: Annaly (NLY +0.6%), Armour (ARR +0.6%), New York Mortgage (NYMT +1.9%), AG Mortgage (MITT +2.1%), Ellington (EARN +1.2%).

ETFs: VNQ, IYR, MORL, REM, MORT, DRN, RQI, URE, SCHH, ICF, RWR, SRS, RNP, RFI, JRS, KBWY, NRO