REITs had a bad week amid market volatility Shares fall for some of the biggest players
The new year has gone from bad to wors爱上海同城论坛 e for real estate investment trust investors, as share prices fell amid global market volatility this week.
As of midday Friday, Vornado Realty Trust’s stock was down 4.3 percent since the beginning of the week. Boston Properties was down 4 percent, Equity Residential down 6.2 percent and SL Green Realty down 6.9 percent.
The U.S. stock market overall was set for the worst week since 2008, according to the Wall Street Journal, with the Dow Jones index having fallen by more than 7 percent.
But even before this week, REIT stocks were having a bad 2018. While the Dow Jones rose to record highs throughout January, several real estate trusts saw their stocks fall (see chart).
“REITs have underperform上海贵族宝贝论坛 ed significantly due to disap上海千花网龙凤论坛 pointing 2018 earnings guidance that has come below Street expectations,” said John Kim, a REIT analyst at BMO Capital Markets. Investors have also been spooked by risi阿拉爱上海同城 ng yields on 10-year treasury yields and signs that wage inflation is picking up across the U.S. economies.
Rising rates tend to be bad news for real estate because they make mortgages more expensive and other investments, such as bonds, more appealing. The real e新爱上海同城对对碰论坛 state industry has been keeping an anxious eye on the new Federal Reserve chairman and any change in monetary policy, as TRD broke down in the February issue.
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