Economics, Housing, & Commercial Real Estate Analysis

Keepin' It Real 

Apartment REITs
Homebuilders 1.png
Data Center REITs
Mall REITs
Net Lease REITs
Housing100logo.png
  • Alex Pettee, CFA

Worst Week For REITs Of 2019 As REIT Rejuvenation Loses Steam

  • For full report, click here to read SeekingAlpha!

  • After surging out of the gate in the first quarter, the high-flying REIT sector trended sideways in the second quarter, finishing roughly flat despite the continued retreat in interest rates.

  • The major benchmark equity indexes, meanwhile, delivered solid gains in the second quarter, adding 3-5% and pushing 2019 on the S&P 500 and Nasdaq to 17% and 20%, respectively.

  • The broad REIT indexes finished the week lower by more than 3%, the worst week of 2019, weighed down by a 4% drop in the heavily-weighted cell tower REIT sub-sector.

  • Pending Home Sales beat estimates as the positive effects of sharply lower mortgage rates are beginning to be felt. New Home Sales missed estimates in May following two strong months.

  • Following several quarters of moderation, home price appreciation appears poised to accelerate into year-end. Apartment and single family rent growth has also picked up to the strongest rate since 2016.

Despite the continued retreat in interest rates, the REIT rejuvenation has lost steam over the last quarter. After surging more than 15% in the first quarter of this year, REITs have trended sideways over the past three months with the major REIT indexes finishing the week lower by roughly 3%. It was the worst week of the year for the Vanguard Real Estate ETF (VNQ), weighed down by the retail and cell tower REIT sectors.

If you enjoyed this report, be sure to "Follow" our page to stay up-to-date on the latest developments in the housing and commercial real estate sectors. For an in-depth analysis of all real estate sectors, be sure to check out all of our quarterly reports: Homebuilders, Apartments, Student Housing, Single Family Rentals, Manufactured Housing, Cell Towers, Healthcare, Industrial, Data Center, Malls, Net Lease, Apartments, Shopping Centers, Hotels, Office,Storage, and Real Estate Crowdfunding.


Disclosure: An investor cannot invest directly in an index and index performance does not reflect the deduction of any fees, expenses or taxes. The information presented does not reflect the performance of any fund or other account managed or serviced by Hoya Capital Real Estate. We consider the information in this presentation to be accurate, but we do not represent that it is complete. It should not be relied upon as the sole source of suitability for investment. Please consult with your investment, tax or legal adviser regarding your individual circumstances before investing. Visit our website for a complete definition of all indexes cited in this report. Investing involves risk and loss of principal is possible.

Hotel REITs
Single Family Rental REITs
Mobile Home REITs
Healthcare REITs
prison REITs overview.png
  • Facebook Social Icon
  • Twitter Social Icon
  • LinkedIn Social Icon

Hoya Capital Real Estate, LLC

Invest@HoyaCapital.com

(833) HOYA-CAP

Hoya Capital Real Estate ("Hoya Capital") is an SEC-registered investment advisory firm that provides investment management services to ETFs, individuals, and institutions, focusing on portfolio and index management of publicly traded securities in the real estate industry. Nothing on this site is intended to be investment advice or an offer to buy or sell securities. The risks of investing in real estate securities are similar to those associated with direct investments in real estate, including falling property values, lack of liquidity, limited diversification, and sensitivity to certain economic factors such as interest rate changes and market recessions. No representation or warranty is made as to the efficacy of any particular strategy or fund, or the actual returns that may be achieved. An investor cannot invest directly in an index and index performance does not reflect the deduction of any fees, expenses or taxes. Data quoted represents past performance, which is no guarantee of future results. The views and opinions in the preceding commentary are as of the date of publication and are subject to change without notice. The information presented does not reflect the performance of any fund or other account managed or serviced by Hoya Capital, and there is no guarantee that investors will experience the type of performance reflected. There is no guarantee that any historical trend illustrated herein will be repeated in the future, and there is no way to predict precisely when such a trend will begin. There is no guarantee that any trend cited in this market commentary will be realized. This material represents an assessment of the market environment at a specific point in time, should not be relied upon as investment advice, is not intended to predict or depict performance of any investment and does not constitute a recommendation or an offer for a particular security. We consider the information in this presentation to be accurate, but we do not represent that it is complete. It should not be relied upon as investment advice or as the sole source of suitability for investment. Please consult with your investment, tax or legal adviser regarding your individual circumstances before investing.

Additional Disclosure & Privacy Policy     Index Definitions & List of Holdings

Seeking-Alpha-Logo.png

The Easy Way To Invest In Real Estate