REITs post weekly gains led by QTS, Colony; losses marginal amid stable sector developments

Jun. 11, 2021 4:35 PM ETQTS Realty Trust, Inc. (QTS), REM, REZ, DBRGQTS, REM, REZ, RYN, MAC, HHC, WY, PCH, CONE, AMT, SVC, DBRG, BXBy: Khyathi Dalal, SA News Editor

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  • Real Estate sector experienced traction in the past week amid the Nareit Conference Week; iShares Residential and Multisector Real Estate ETF (NYSEARCA:REZ) and iShares Mortgage Real Estate ETF (BATS:REM) reported gain of 2.4% and 2.1% respectively in the past 5 day trading session.
  • As per presenters at Nareit's REITweek Investor Conference, occupancy rates likely have bottomed out, and growth opportunities are on the rise.
  • Mortgage rates inched lower to 2.96% in the week ended June 10 compared to 2.99% from prior week.
  • In the Nareit Conference, Residential REITs indicated a positive FY21 outlook with multifamily properties, single-family houses growth significant.
  • Among the weekly gainers in the real estate sector (of stocks Mid, over $2B), QTS Realty (NYSE:QTS) stock rallied 20.1% after it announced acquisition by Blackstone (NYSE:BX) in an all-cash transaction valued at ~$10B.
  • Colony Capital (NYSE:CLNY) and Service Properties Trust (NASDAQ:SVC) followed with 14.7% and 10% gains respectively.
  • While Colony announced sale of the bulk of its other equity & debt ("OED") portfolio of real estate assets to Fortress Investment for $535M, Services Properties Trust amended its management with Hyatt.
  • CoreSite Realty (NYSE:COR) and CyrusOne (NASDAQ:CONE) followed with 9.6% and 9.2% gains respectively; Wells Fargo believes that CyrusOne is at the top of potential takeout targets in the datacenter REIT space and CoreSite Realty (COR) is also a possible candidate.
  • Losers pack recorded marginal losses which stretched from a maximum loss of 4.2% recorded by PotlatchDeltic (NASDAQ:PCH) followed by 3.6% loss of Weyerhaeuser (NYSE:WY).
  • Weyerhaeuser CEO Devin Stockfish believes the home-building and renovation boom could keep wood demand strong for another decade.
  • Rayonier (NYSE:RYN), The Howard Hughes (NYSE:HHC) and The Macerich (NYSE:MAC) reported losses between 1%-2%.
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