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More Than 30 REITs On Today’s New Lows List


Real estate, REITs


REITs, once the popular choice of many, are among the worst looking investments lately for those who go by price. More than 30 hit the list of “new lows” on the New York Stock Exchange today as key benchmark ETFs for the sector dropped down to new 52-week lows.

The group peaked in late December 2021 and it’s been downhill with a few unsuccessful rallies since then. The unloading comes as noted investment manager Bill Ackman says that the economy is slowing faster than expected and as “bond king” Bill Gross says a recession is coming before year’s end.

REITs, designed to offer investors a way into commercial real estate, begin to look less than attractive as indicated by the hugeness of the selling. As underlying properties may tend to decrease rather than increase in value, it’s unfortunate for shareholders who may even wonder if dividends will continue.

The daily price chart for the benchmark REIT exchange traded fund, the iShares U. S. Real Estate ETF, is here:

iShares U. S. Real Estate ETF daily price chart, 10 23 23

The rally off of the early October low failed and the fund is down to a new 52-week low. The red-circled crossover of the 50-day moving average (the blue line) to below the 200-day moving average (the red line) offered a heads up to the possibility of more bearish price action.

And here’s how it looks for the 5 largest individual real estate investment trusts traded on the NYSE, as measured by market capitalization.

REITs Making New Lows: The Big Ones.

Alexandria R E Equity’s daily price chart looks like this:

Alexandria R E Eqty daily price chart, 10 23 23.

This REIT broke below June lows in mid-September and has been unable to recover even as others in the sector attempted decent rallies in early to mid-October. The 50/200 moving average crossover took place way back in March. Market cap comes to $16.33 billion.

Here’s the daily price chart for Crown Castle International:

Crown Castle Intl daily price chart, 10 23 23.

Trading below the 200-day moving average for months now, the REIT gapped even lower last week and today made the slightly lower low before a slight bounce. Market capitalization is $37.56 billion.

Camden Property Trust CPT has a daily price chart that looks like this.

Camden Property Trust daily price chart, 10 23 23.

You can see how this one attempted a mid-October rally before taking out the early-in-the-month low today. Market cap is $9.80 billion.

The daily price chart for Extra Space Storage EXR is here:

Extra Space Storage daily price chart, 10 23 23.

The REIT hit an early October low, rallied for a few days and then investors began selling again for another new low today. Market capitalization comes to $22.85 billion.

Public Storage’s PSA daily price chart is here:

Public Storage daily price chart, 10 23 23.

Another REIT with a rally off the early October low — and then runs into relentless selling for a new low. Market cap is $43. 59 billion.

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