The first week of 2016 started on a positive note for U.S. REITs, but then saw a drop in the main market indicators. Last week, the S&P 500 fell 6%. The Vanguard REIT ETF, a popular ETF that tracks equity REITs, was down 2.8%. In fact, most equity REIT stocks went down last week; only 20 out of 175 equity REIT stocks we track had positive returns. The bright side is that the overall REIT performance was not as bad the S&P 500.
This time, China concerns has monopolized the headlines as its economic growth rate slows down and the investment doesn’t look so attractive. Investors believed the New Year was a good time pull out their money. The Shanghai Composite plummeted by 7% last Thursday, halting the trading for the day.
This is a trend we observed last summer. Somehow China’s transition from a fast economy to a moderate one has become a major concern of U.S. stock investors, even if they are not invested there.
We rearranged our sectors according to the FTSE NAREIT All REITs Index so you’ll see some new sectors such as Single Family Homes and Specialty. The mixed Industrial/Office sector no longer exists and its participants migrated to either Industrial or Office. Diversified, which is more of a miscellaneous group, has been reduced.
We also replaced the ticker SWAY for SFR following the closing of the merger between Colony American Homes and Starwood Waypoint Residential Trust. The combined company’s name is Colony Starwood Homes, which is part of the Single Family Homes sector.
All other sectors have remained the same. As you know, we are very sector centric so the changes are for the better and will allow us to make a more accuratae analysis.
Companies: Colony Starwood Homes (NYSE:SFR)
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 January 08, 2016 — 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 December 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.