All down on a Barron's interview with the head of Green Street Advisors. Am I missing something? I read the interview and I don't think he said anything particularly negative about prospects for REITs, and am surprised by the crowd reaction. My guess, this is a 1-2 day ill-informed knee-jerk sell-off by amateurs who form their opinions on stocks based on one article they read. Shaking the nervous nellies out every now and then is a good thing. Good luck to them replacing their shares with something better in this overpriced market.
As far as concerns about interest rates rising, keep in mind that for apartment REITs, at least, that would be a blessing, since they have struggled for the past couple of years with low rates luring tenants out of their buildings, or keeping new ones away, since with low rates it has become nore affordable to many to be homeowners. In fact, the single biggest PLUS for apartment REITs would be rising interest rates. Other REITs would not benefit by rising rates.
The worst is probably behind us on the Barron's reaction(I still don't see what sellers were even seeing in the interview as so negative or "news"). MAA suffered about equal to the average apartment REIT today, selling off less than 3%. By contrast, EQR, the largest of the apartment REITs was off more than 4%.
I expect we'll see some former fence-sitting yield-seekers coming in tomorrow and running MAA back up a half a point or more. Should be $37 again by end of the week.
If it should go much much lower, I might sell my puts and go unhedged again. I got hedged in case a real news development should come along. This reaction today doesn't qualify as real or news.