The major REITs traded mostly lower on Friday with a few exceptions. Ahead of the weekend, the units are re-pricing the effects of a strong jobs report which suggests more definitely the likelihood of the Fed raising interest rates, perhaps more than expected.
Independence Realty Trust (NYSE:IRT) was the biggest loser in the sector Friday, with a loss of 2.10%:
By trading back down toward the level of the June lows, these units are, in effect, re-testing those lows. It would be bearish to close much lower than that area just above $20 per share. Independence Realty Trust is the Philadelphia, Pennsylvania residential REIT paying a 2.70% dividend.
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Weyerhaeuser Co (NYSE:WY) managed to go the other way, closing the day up by 1.54%:
It appears to be headed for the “gap down” area just below $36 where the REIT suffered a serious mid-June collapse. Note how different the trend is compared to the Indepence Realty price chart pictured above. Weyerhaeuser is continuing upward with obvious strength. The timberland REIT is paying investors a 2.09% dividend.
The benchmark for the REITs, the Real Estate Select Sector SPDR (NYSE:XLRE) closed the day lower by .46%:
The close for the widely followed REIT “index,” composed of many different components, suggests a lack of excitement Friday for most of the sector.
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Not investment advice. For educational purposes only.
Charts courtesy of StockCharts
