Will October be the best month in 2015 for REITs, despite the lodging REITs?

sampleUS equity REITs have had another good week. The 174 stocks we track have returned 1.4 percent this week, resulting in a 7.8 percent return month-to-date. The MSCI US REIT (NYSE:^RMZ) added another 0.9 percent return last week, which resulted in a 6.6 percent month-to-date return. The month of January this year so far, has been the best month in 2015 for REITs. That month, the RMZ returned 6.6 percent; but, as we indicated in past editions, October appears to be another promising month for REITs.

The highlight of the week has been when Campus Crest Communities (NYSE:CCG), was up 16 percent following its board agreement to sell the company to Harrison Street Real Estate Capital. By the end of the week, the share price stabilized around US$6.60. The company announced its strategic repositioning in November of last year and their last distribution was declared in December, 2014.

A ‘bump in the road’ occurred on Friday, October 23, when lodging REITs suffered a major drop after Pebblebrook Hotel Trust (NYSE:PEB) indicated softer results in Q3 and adjusted down its Q4-outlook. Ranking by last week’s returns showed many lodging REITs occupying the bottom positions. From an operational standpoint though, lodging REITs have had one of the best performing metrics of the REIT space in Q2; but, there’s a chance now that it is going to change in Q3.

Check the reports for Dividend Yield by Sector and Last Week’s Returns.

Disclaimer: This is not a recommendation to buy or sell stocks. The highest-yield stocks are not necessarily the best portfolio investment choice. The purpose of this report — which is essentially a snapshot of information available on October 23, 2015 — is to reduce your stock analysis by enabling you to compare stock and sector performance. Please do your own due diligence before making any investment decision. Heli Brecailo

As of September 30, 2015, the equity REITs are constituent companies of the FTSE NAREIT All REITs Index. Companies whose equity market capitalization is lower than $100 million have been disregarded.

This report 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. 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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