REITs back to downward trajectory after last week’s rise

Posted on November 5, 2022Comments Off on REITs back to downward trajectory after last week’s rise

Becart/E+ via Getty Images REITs are back to their downward trajectory after last week‘s rise as the Q3 earnings season comes to an end for most of the companies in the sector. Data center REITs, retail REITs and diversified REITs were an exception, having finished higher W/W. Most REITs finished lower than last week, with self storage REITs and hotel REITs being the largest laggards. Three major self storage REITs, National Storage Affiliates (NSA), Extra Space Storage (EXR) and Public Storage (PSA), posted a decline in stock prices in the last five days, despite largely reporting a beat in their quarterly results. All the three reported declines in their occupancy rates, with a not-so-positive outlook in the occupancy front. Here is a look at the stock price movements of the three stocks. Hotel REITs saw an ~8% decline this week, contrary to the subsector’s strong performance in the last few weeks. Analysts are skeptical over the sustainability of the post-COVID recovery in the hotel REITs sector, especially the recovery of the Revenue Per Available Room metric. A pent-up domestic leisure travel and surging room rates play a significant role in driving the metric, rather than an underlying occupancy recovery, Seeking Alpha Author Hoya Capital said.

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Comments Off on REITs back to downward trajectory after last week’s rise