U.S. REIT Stocks: August Update

REIT Stocks: What We Learned About This Week’s Selloff by Heli Brecailo, editor of GilverBook Summary The recent selloff affected REIT stocks with greater intensity. No particular sector or size was t

Sourced through Scoop.it from: www.valuewalk.com

The results of August 2015 have been well within our expectations. Year-to-date, some sectors expectedly still lead share performance. Data center, self-storage and manufactured homes grew 17, 9 and 8 percent respectively. The first two have the lowest dividend yield median as a sector. It is not surprising that our top-ten performing stocks of 2015 include four from data center, three from self-storage, and one from manufactured homes.

As you know, the August’s selloff hurt stocks indiscriminately, depressing prices across the board. The median return was -7.4 percent, and returns were positive for only 5 of the 175 stocks we follow. Three stocks have been the highlight of the month: National Storage Affiliates Trust (NYSE:NSA), CyrusOne (NASDAQ:CONE) and Seritage Growth Properties (NSYE:SRG) return 9.4, 3.0 and 2.9 percent.

As far as opportunities go, even some sectors with good fundamentals were penalized. Healthcare and lodging went down this year. Many investors use healthcare as a defensive sector to weather downturns; although the national economy has been managing reasonably well, it is a good one in which to invest in the long haul. Lodging, as a short-duration stock, can in turn benefit from a rising interest rates environment. Also, demand has outpaced supply. The dividend yield medians for these sectors are 6.1 and 4.8 percent respectively.

There might, it should be remembered, be new volatility between now and Fed’s next meeting in two weeks. Otherwise, this has been a good time to purchase select REIT stocks.

Check the reports for Dividend Yield by Sector, August’s Returns and Year-to-Date Returns. 


Disclaimer: This newsletter is not engaged in rendering tax, accounting, or other professional advice through this publication. No statement in this issue is to be construed as a recommendation to buy or sell any security or other investment. Please do your own due diligence before making any investment decision. Some information presented in this publication has been obtained from third-party sources considered to be reliable. Sources are not required to make representations as to the accuracy of the information, however, and consequently the publisher cannot guarantee accuracy.

Disclosure: The author has no positions in any shares mentioned, and no plans to initiate any positions within the next 72 hours.

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