Industry leaders project commercial real estate has reached its cyclical peak and real estate markets are cooling. Here’s our breakdown of how the REIT sector is faring.
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WINNER: Alexander’s Inc
Monday Open: $367.55
Friday Close: $409.23
Change: 11.3%
Steven Roth’s (above) retail REIT took the lead this week with an 11.3% gain, and analysts gave the former department store chain-turned-REIT a “buy” rating. The trust has experienced high trading volume within its 52-week period, ranging from $350 to $434/share.
WINNER: Saul Centers Inc
Monday Open: $54.43
Friday Close: $61.28
Change: 6.7%
Saul Centers, overseen by CEO Francis Saul II, operates retail and office properties that account for more than 9M SF of leasable area. In May, the trust reported earnings of $12.95M on revenue of $56.50M, and analysts gave the retail REIT a “buy” rating.
WINNER: Regency Center Corp
Monday Open: $78.50
Friday Close: $83.74
Change: 6.67%
Regency rounds out our top three with a 6.67% gain—the third retail REIT to take the lead this week, even though the retail sector is struggling. Recently, it announced plans to acquire CBRE’s three-property portfolio, Market Common Clarendon, with Avalon Bay Communities for $410M.
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LOSER: Colony Capital
Monday Open: $16.33
Friday Close: $15.42
Change: -5.57%
Our biggest loser of the week was Thomas Barrack's (above) Colony Capital. The Los Angeles REIT owns holdings in North America and Europe, where capital markets have taken a hit following the UK’s decision to leave the EU. Colony also announced a three-way merger last month between NorthStar Asset Management and NorthStar Realty Finance to form a new REIT—Colony NorthStar—with $58B in assets under management.
LOSER: Apollo Residential Mortgage
Monday Open: $13.56
Friday Close: $13.30
Change: -1.9%
Apollo Residential posted a Q1 net loss of $13M in May and revenue of $26.2M. The finance REIT merged with Apollo Commercial Real Estate in February for $14.59/share.
LOSER: NorthStar Realty Finance Corp
Monday Open: $11.66
Friday Close: $11.46
Change: -1.74%
NorthStar rounded out the losers this week, although the 1.74% drop is a blip considering the stock has been buzzing since last month's announcement of its coming merger with Colony Capital. Its 52-week range has fluctuated greatly from $8 to $36.90/share.
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