U.S. REITs – A Good Week Marked By Lingering Effects

 

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Last week the REIT universe was ‘riding high’ as the market gave it a ‘thumbs-up’–since the 175 equity REITs we track had a median return of 3.6 percent. All of the sectors except one performed well. Industrials were the leader of the sector due to increasing 6 percent in aggregate, but lodging stocks fell by 2 percent. Both of these sectors’ returns were consistent across the board; there was no single stock that increased or decreased the median return.

Through the fourteen days after Weyerhaeuser acquired Plum Creek, the market continued to purchase Plum Creek shares, which were up 9.1 percent last week, and 23.7 percent month-to-date. Weyerhaeuser was down 4 percent at the time of the acquisition announcement but actually was up 10.1 percent last week.

On the other hand, even though Pebblebrook adjusted its guidance down in late October, its shares continued to tank. Last week, the share price fell by 6.8 percent, dropping it to the bottom in an otherwise bright week for REITs.

Check the reports for Dividend Yield by Sector and Weekly Returns.

Heli Brecailo

Companies: Weyerhaeuser (NYSE:WY); Plum Creek (NYSE:PCL); Pebblebrook Hotel Trust (NYSE:PEB)

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 November 20, 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.

As of October 31, 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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