REIT Replay: REIT indexes underperform broader market during week ended Sept. 19

Indexes for US REIT stocks fell during the week ended Sept. 19, with the Dow Jones Equity All REIT index declining 1.64% and the MSCI US REIT (RMZ) index down 1.66%.

Meanwhile, the broader market indexes recorded gains, with the S&P 500 up 1.22% and the Dow Jones Industrial Average up 1.05%.

All Dow Jones US real estate property sector indexes logged declines this past week. The self-storage and hotel REIT indexes fell the furthest, down 2.73% and 2.67%, respectively, followed by the healthcare index with a 1.95% drop.

Office REIT Paramount Group Inc. recorded the largest share-price drop among US REIT stocks with at least $200 million in market capitalization, at 8.42%. The share-price drop followed a press release announcing that the REIT entered into a definitive agreement for Rithm Capital Corp. to acquire it for $1.6 billion, or $6.60 per fully diluted share. The office REIT's share price had risen over the last couple of months following its May 19 announcement that its board of directors has initiated a review and evaluation of strategic alternatives.

Communications REIT Uniti Group Inc. and cold-storage-oriented Americold Realty Trust Inc. followed next, with share-price declines of 7.49% and 6.96%, respectively.

Multifamily REIT Aimco logged the largest share-price increase for the week, up 4.53%. Farmland REIT Gladstone Land Corp. ranked second with a share-price increase of 4.51%, followed by data storage-oriented Iron Mountain Inc., up 3.31%.