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Real estate stocks end in red amid geopolitical tensions

Maxiphoto/iStock via Getty Images Real estate stocks closed the week in red amid the geopolitical tensions, with The Real Estate Select Sector SPDR Fund ETF (NYSEARCA:XLRE) posting losses in four out of five trading sessions. The major market averages were impacted adversely after Israel's defense forces said Iran launched about 200 missiles at the country, an escalation that may trigger a wider war in the Middle East. \"It makes sense for stocks to weaken on geopolitical fears. Although my contacts and I do not expect a world war-like escalation, any longer-term disruption in energy markets and global trade could cause inflation to rebound,\" Leo Nelissen, part of investing group iREIT on Alpha, told Seeking Alpha. However, Friday's significantly stronger-than-anticipated September jobs report led to the S&P 500 gaining 0.22% for the week to close at 5,751.07. But XLRE finished 1.74% lower at 43.52. Dow Jones REIT Indx Equity REIT Total Return Index (NASDAQ:REIT:IND) ended the week 1.67% down, while the FTSE Nareit All Equity REITs (INDEXFTSE:FNER) declined by 2.93%. Sector News Host Hotels & Resorts (HST) was among the stocks screened by Morgan Stanley that may observe some technical pressure due to tax loss selling. Data center REITs Digital Realty Trust (DLR) and Equinix (EQIX) were upgraded at HSBC Global Research on the potential for improvement in operational momentum. Wells Fargo upgraded the senior housing and skilled nursing facilities CareTrust REIT (CTRE), Sabra Health Care REIT (SBRA) and Ventas (VTR) and downgraded National Health Investors (NHI) and Welltower (WELL) on two-year price to earnings growth and yield. CBRE Group (CBRE) was among the top 10 S&P 500 stock performers of Q3. Notable Movers Specialized REIT Iron Mountain (IRM) and retail REIT Simon Property Group (SPG) were the top stock performers of the week. Health care REIT Alexandria Real Estate Equities (ARE), telecom tower REIT Crown Castle (CCI) and self-storage REIT Extra Space Storage (EXR) were the losers. CCI was losing after the company was said to be looking at a $8B-$10B deal with fiber network owner Zayo Group and private equity firm TPG to sell its fiber and wireless assets. Here is a look at the subsector performances during the week:

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