US equity REIT average short interest edges higher in May

The average short interest in US equity real estate investment trusts grew in May compared with the prior month.

US equity REITs' average short interest rose 5 basis points from April to about 5.0% of shares outstanding in May, according to an S&P Global Market Intelligence analysis.

Farmland REITs record steepest short interest climb

Farmland REITs posted the largest month-over-month increase in average short interest in May, rising 89 basis points to 5.6% of shares outstanding.

"Other retail" REITs registered the highest average short interest at 8.9% of shares outstanding in May and the second-highest month-over-month increase of 67 basis points. The "other retail" segment includes single-tenant and outlet center REITs.

Healthcare REITs booked the third-largest sector increase in average short interest, rising 39 basis points to 5.2% of shares outstanding as of May 29.

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Among all sectors, advertising REITs recorded the steepest drop in average short interest, declining 95 basis points to 3.0% of shares outstanding in May.

Data center REITs followed with a month-over-month decline of 88 basis points to 2.4% of shares outstanding in May. Data center and advertising REITs posted the second- and third-lowest average short interest, respectively, in May.

REITs with largest change in short interest

Diversified REIT Generation Income Properties recorded the largest increase in short interest among all REITs in May, jumping 6.2 percentage points to 11.9% of shares outstanding. The REIT posted the sixth-largest month-over-month rise in April.

Healthcare REIT CareTrust REIT Inc., which recorded the largest decline among all REITs in April, ranked second in May. Its average short interest rose 5.6 percentage points to 8.7% of shares outstanding during the month.

Curbline Properties Corp., which owns and manages convenience shopping centers, rounded out the three REITs with the largest increase in short interest, up 3.8 percentage points to 9.6% of shares outstanding in May.

Short interest in shopping center REIT Wheeler REIT Inc. fell 2.9 percentage points to 10.7% of shares outstanding in May — the largest decline among all REITs. Wheeler posted the highest increase in short interest in April.

Industrial REIT Modiv Industrial Inc.'s short interest dropped 1.9 percentage points to 0.9% of shares outstanding in May, the second-largest decline among all REITs.

After posting the sixth-largest decline in short interest in April, office REIT Kilroy Realty Corp. booked the third-highest drop in May, down 1.8 percentage points to 9.4% of shares outstanding.

Most shorted REITs

Single-tenant REIT NETSTREIT Corp. was the most-shorted REIT stock in May, with 29.5 million shares sold short, representing 30.3% of shares outstanding.

Healthcare REIT Medical Properties Trust Inc. followed with 22.3% of shares outstanding and 133.2 million shares sold short in May. Medical Properties was the third-most shorted REIT in April.

Hotel REIT Park Hotels & Resorts Inc. ranked third, with 38.9 million shares sold short, or 19.3% of shares outstanding.