Two healthcare REITs form part of weekly real estate gainers while WeWork, Opendoor are among major losers

Jul. 02, 2022 9:04 AM ETIIPR, OUT, CMTG, OPEN, WE, CBRE, HR, COLD, HHCBy: Khyathi Dalal, SA News Editor4 Comments

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  • In the real estate sector performance last week, gainers traded in green ahead of the S&P 400 total returns of -2.1%.
  • Gainers include, The Howard Hughes (HHC) with 4.3% gain, Americold Realty Trust (COLD) at 3.9%, Healthcare Trust of America (HTA) and Healthcare Realty (HR) gaining 3.8% and 3.7% respectively, CBRE (CBRE) stood at 3.5%.
  • Of the 11 Wall Street analysts covering the Healthcare Realty Trust stock, 6 have rated Hold while 3 have assigned Strong Buy while 9 analysts covering the CBRE stock, 4 have assigned a Buy rating while 3 rate a Strong Buy.
  • Weekly losers include WeWork (WE) at 19.7% drop, Opendoor Technologies (OPEN) with 9.7% loss, Claros Mortgage Trust (CMTG) eroded 6.9%, Outfront Media (OUT) lost 6.3%, Innovative Industrial Properties (IIPR) saw 6.2% drop.
  • WeWork was initiated at UBS with a Neutral rating based on economic uncertainty thereby making investors more cautious about the flexible workspace leader's prospects even with growing demand for flex office space coming out of the pandemic.
  • WeWork is also at high risk of performing badly based on SA analysis; its Return on Total Assets stands at -20.4% compared to Real Estate sector median of 2.34%.
  • Opendoor Technologies traded lower amid real estate stocks, especially those with a tech focus continuing to exhibit weakness.
  • The past week saw mortgage rates reverse their consecutive weekly uptrend; rates narrowed to 5.7% for the June 30 week compared to 5.81% from its prior week led by countervailing forces of high inflation and the increasing possibility of an economic recession.
  • On the other hand, mortgage applications inched down 0.7% higher from prior week after touching its highest level since 2008 with a 4.2% growth.
  • Fitch ratings recently revised equity REIT outlook downward to neutral from improving.
  • SA Contributor Chilton REIT Team recently analyzed the equity REITs takeaways from NAREIT REIT Week.

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