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