The most apt description of Christmas week in the stock market this year is simply short and sweet. The majority of REIT stocks went up following the Fed’s announcement of their first increase in interest rates since the great recession. The good holiday mood also helped to a certain extent and +1.5 percent was the median return. Across the board, all sectors overall showed positive returns.
CorEnergy Infrastructure Trust was up by 8 percent after a significant fall throughout December. Unfortunately, it wasn’t anywhere near enough to be successful at pulling it out of its agony. Due to poor returns of –54 percent throughout the year, it is definitely a 2015 bottom performer; the 8 percent rebound couldn’t do enough to create a positive return for the stock in 2015.
Timber was also quickly heading for the position of 2015’s sector with the worst performance, especially after a dismal second quarter. However, the merger of Plum Creek and Weyerhaeuser offered an early Christmas gift to the Plum Creek shareholders in the form of a robust dividend rise. In addition, timber stocks went up after the merger. Unfortunately, it was not quite sufficient to create a positive return in timber for 2015, although it did help somewhat by boosting timber stocks.
So, all in all, in 2015 infrastructure is down 29 percent and timber is down 14 percent.
Occupying the bottom one-week position were rookies Community Healthcare Trust and Global Net Lease. On the other side of the coin, the rookie NorthStar Realty Europe was the top performing with a 10 percent return.
Last week, Urstadt Biddle Properties raised its quarterly dividend by 2 percent, and FelCor Lodging Trust by 50 percent.
Companies: CorEnergy Infrastructure Trust (NYSE:CORR), Plum Creek Timber Company (NYSE:PCL), Weyerhaeuser Co. (NYSE:WY), Community Healthcare Trust (NYSE:CHCT), Global Net Lease (NYSE:GNL), NorthStar Realty Europe Corp. (NYSE:NRE), Urstadt Biddle Properties (NYSE:UBA), FelCor Lodging Trust (NYSE:FCH)
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 24, 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.