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REIT Replay: REITs underperform S&P 500 in week ended Aug. 10

Real estate investment trust share prices dropped during the week ended Aug. 10, with the SNL U.S. REIT Equity index down 1.44%. The S&P 500 and Dow Jones Industrial Average dipped as well, down 0.25% and 0.59%, respectively.

The self-storage REIT index was the sole property sector index to log an uptick in pricing during the week, rising 0.21%. The hotel sector logged the largest drop in share prices, down 3.21% for the week.

Share prices for Front Yard Residential Corp. soared 18.99% during trading Aug. 9 after the single-family housing REIT announced its acquisition of property manager HavenBrook Partners LLC with its second-quarter earnings. The acquisition, which also included a portfolio of 3,236 properties managed by HavenBrook, commenced the REIT's internalization of its property management function onto the HavenBrook platform, an effort that Front Yard believes will create an "efficient, scalable platform" and allow the company to benefit from economies of scale. For the week, Front Yard share price was up 33.19%.

Spirit MTA REIT, which spun off from Spirit Realty Capital Inc. in June, logged an 8.58% share price increase for the week. With its second-quarter earnings, Spirit MTA declared a 33-cent-per-share cash dividend, representing 8 cents per share for June and 25 cents per share for the third quarter.

CBL & Associates Properties Inc.'s stock price fell 10.15% on Aug. 6 after S&P Global Ratings lowered the regional mall REIT's issuer credit rating to BB from BB+, with a negative outlook. For the week, CBL's share price was down 14.94%, and it was the most actively traded REIT stock.

Other REITs with double-digit share price drops included Braemar Hotels & Resorts Inc., down 11.98% for the week, and healthcare REITs MedEquities Realty Trust Inc. and New Senior Investment Group, down 11.55% and 10.47%, respectively.

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This S&P Global Market Intelligence news article contains information about credit ratings issued by S&P Global Ratings, a separately managed division of S&P Global. Descriptions in this news article were not prepared by S&P Global Ratings. The original S&P Global Ratings documents referred to in this news brief can be found here.