Real estate investments trusts are interest-rate sensitive and investors weigh that along with other factors before deciding whether to hold on or to unload. One major other factor is the underlying value of specific real estate assets: are those prices going up or headed down?
The selling taking place in these 5 REITs indicates that investors have made the decision to get out. As the Standard and Poor’s 500 and the Nasdaq 100 have recently made new 52-week highs, it’s striking to see so many in the real estate sector doing just the opposite: making new lows.
5 REITs With New Lows.
Claros Mortgage Trust has a market capitalization of $1.28 billion. The REIT focuses on commercial real estate in major markets. Here’s the daily price chart:
The early December 2023 peak of $15 is followed by a steadily declining price until this week’s $9.21 for a 38% loss of value in about 2 months. Claros broke below the November and August 2023 lows and now trades underneath both its 50-day and 200-day moving averages.
Global Net Lease invests in net lease assets in the U. S. and in Western Europe. Its market cap comes to $1.65 billion. The daily price chart is here:
Having taken out its late October 2023 low, the REIT is far below its down trending 50 and 200-day moving averages. From the late August 2023 peak of $10.50 to the current $7.16 amounts to a 31% drop. The relative strength index has reached “oversold” status.
New York Mortgage Trust invests in single family and multi-family assets, and is market capitalized at $637 million. The daily price chart looks like this:
This is another instance of a REIT showing a steadily declining pattern, with a few ups and downs, over a period of months. This week’s new low takes out the early November support level. The price is now deeply below both of the down trending moving averages.
Office Properties Income Trust is a Nasdaq-traded REIT with a market capitalization of just $161 million. Here’s the daily price chart:
The REIT peaked in July 2023 at just above $8.00 and now goes for $2.79, representing a 65% drop from then to now. Office Properties trades well below both its 50 and 200-day moving averages. The relative strength index is back to the “oversold” range.
Orion Office Lease is a net lease REIT with a market capitalization of just $205 million. The daily price chart is here:
In a familiar type of pattern for this group of REITs, the price is trading below both down trending moving averages. Today’s drop comes after the company reported a net loss of $.29 for the 4th quarter of 2023. Orion Office peaked in July 2023 at just under $6.80 and is now priced at $3.68 for a 45% drop.