As we approach the Fed meeting in mid-December, we anticipate volatile days ahead of us. REIT stocks went through some tough times last week. On Thursday, Janet Yellen laid the foundation to raise interest rates, putting an end to weeks of peace and tranquility in the REIT universe. Last week is just a sample of what is going to happen in the next two weeks.
The 175 stocks we track went down 1.8 percent last week. Some of the stocks that went down significantly were Armada Hoffler Properties (-6.0 percent), STAG Industrial (-7.1 percent), NorthStar Realty Finance (-8.7 percent), and CorEnergy Infrastructure Trust (-15.4 percent).
Every sector but self storage had a bad week. A couple of stocks did make a positive return, though. American Residential Properties shares increased by 8.0 percent as the company is merging with American Homes 4 Rent. Also, Extra Storage, which is a winning REIT stock for the year 2015, went up 2.2 percent.
The sector of hospitality was once again the worst performing sector. These stocks declined a median of 3.0 percent. One of the few stocks that did not decrease was Apple Hospitality. This stock rose by 4.2 percent. We cannot currently determine why their shares increased at a rapid pace.
On Thursday, DuPont Fabros increased dividend by 12 percent and forward yield is now at 5.9 percent, the highest in data center REITs. Although at the beginning of the year an important client filed for bankruptcy, they were able to find a new one.
Other stocks that increased dividend last week: CoreSite Realty Corporation (26 percent), American Tower Corporation (11 percent), SL Green Realty (20 percent), and Douglas Emmett (5 percent). CorEnergy Infrastructure Trust completed its 1-for-5 reverse stock split.
Companies: Armada Hoffler Properties (NYSE AHH), STAG Industrial (NYSE:STAG), Northstar Realty Finance Corp. (NYSE:NRF), CorEnergy Infrastructure Trust (NYSE:CORR), American Residential Properties (NYSE:ARPI), American Homes 4 Rent (NYSE:AMH), Extra Space Storage, Inc. (NYSE:EXR), Apple Hospitality REIT, Inc. (NYSE:APLE), DuPont Fabros Technology (NYSE:DFT), CoreSite Realty Corporation (NYSE:COR), American Tower Corporation (NYSE:AMT), SL Green Realty Corporation (NYSE:SLG), Douglas Emmett, Inc. (NYSE:DEI), CorEnergy Infrastructure Trust (NYSE:CORR).
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 December 04, 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 November 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.