Average short interest in US REITs unchanged in 1st half of August

Average short interest in U.S. equity real estate investment trusts remained at 3.3% of shares outstanding during the first half of August, according to S&P Global Market Intelligence data.

Advertising, regional malls see biggest decline

The average short interest of advertising REITs decreased the most during the period, dropping 30 basis points to 2.7% of shares outstanding as of Aug. 15.

OUTFRONT Media Inc. logged the largest decrease in short interest in the sector, with a 58-basis point decline to 3.2%. Lamar Advertising Co. reported a drop in short interest of 2 basis points over the course of two weeks to 2.1% of its outstanding shares.

The next highest reduction was in the regional mall sector, which, as of Aug. 15, had 7.1% of shares outstanding after falling 26 basis points.

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Among all property categories, the "other retail" segment, which includes outlet center, single-tenant and other retail REITs, had the largest increase in average short interest, rising 67 basis points to 4.4% of shares outstanding as of Aug. 15. The diversified REITs segment saw a rise of 15 basis points to 2.5% of outstanding shares.

Top REITs by change in short interest

Single tenant REIT NETSTREIT Corp. saw an 11.1-percentage point hike to 18.3% of its outstanding shares, the highest increase in short interest over the course of two weeks ended Aug. 15. Diversified REIT Broadstone Net Lease Inc. followed, with its short interest up 6.6 percentage points to 8.4% of shares outstanding.

Diversified REIT iStar Inc. saw the biggest drop in short interest relative to shares outstanding, down 2.7 percentage points to 3.8% of its shares outstanding.

REITs with biggest short positions

NETSTREIT was the most-shorted U.S. REIT stock, with 9.5 million shares sold short as of Aug. 15. Regional mall REIT Pennsylvania REIT and hotel REIT Sunstone Hotel Investors Inc. followed, with short interests of 15.7% and 12.4% of outstanding shares, respectively.