May Lim/iStock via Getty Images
Equity REITs fell 0.15% in the week before the Christmas holiday season, while mortgage REITs gained 2.13% in value.
Hotel REITs are the biggest laggard among sub-sectors, having lost 4.38% of their value in week ending December 23. Consensus is negative for the sector, based on a Baird Equity research report. In this organization’s Insights from Investor Sentiment Survey, 65% of respondents identify the sector as Underweight. In 2023, 80% of investors expect hotel REIT stock to underperform.
Industrial REITs were relatively better this week, finishing 0.97% higher.
Office REITs were the biggest loss so far this year, having lost 39.84% in value. According to Morningstar’s December 19 report, 2022 will be the second worst year in history for their REITs. speakquotes Morgan Stanley’s REIT outlook.
Meanwhile, the broader Real Estate SPDR ETF lost 1.12% on a weekly basis, while the S&P 500 fell 0.19%.
REITs have had a rough year, but they’re also likely to have more trouble in 2023, according to Morgan Stanley’s REIT outlook.
