In April of 2015, the total return for the FTSE NAREIT US Real Estate All Equities Index experienced a decline of 4.9 percent, with an accompanying decrease in 5.1 percent for the share price return. On the brighter side, income return has increased by 0.1 percent, and the dividend yield is 3.6 percent.
The market punished all sectors across the board except for infrastructure, with the greatest penalty being a decline of 7.2 percent for retail. No one retail subsector by itself accounted for the drop, which hit shopping centers, regional malls and free-standing stores alike. The infrastructure, indeed, had increased by one percent.
|All Equity REITs||(4.9)||(5.1)||0.1||3.6|
The following companies in the retail sector were hammered in April:
|Property Sector||Company||Ticker||05-01-15 Div. Yield||Sector’s Median Div. Yield||April Share Price Percent Change|
|Retail||Saul Centers, Inc.||BFS||3.4||4.0||(12.0)|
|Retail||Brixmor Property Group, Inc.||BRX||3.8||4.0||(11.7)|
|Retail||Acadia Realty Trust||AKR||3.1||4.0||(11.4)|
In general, a declining stock price gives the dividend investor a greater opportunity to capture a higher yield. In this case, however, the resulting yields are below the median for that sector.
Another important index — MSCI US REIT Index (RMZ) fell by six percent, and year-to-date RMZ is down 0.8 percent.
Tomorrow, we will post the worst-performing stocks in each sector.
Written by Heli Brecailo
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Disclosure: The author has no positions in any shares mentioned, and no plans to initiate any positions within the next 72 hours.