REIT Scorecard: Last Week's Winners And Losers
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.
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.
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.
