BMO Capital made two calls on August 26, 2014 in the mall REIT space, upgrading Macerich (NYSE: MAC) from Market Perform to Outperform; and downgrading REIT industry giant Simon Properties Group (NYSE: SPG) from Market Perform to Outperform.
Here is a glance at how they have performed year-to-date vs. industry peers and the S&P 500:
Industry leading General Growth Properties (NYSE: GGP) is paying out one of the sectors lowest yielding dividends -- currently yielding only ~2.6 percent. Based its higher yield and poorer performance YTD, Macerich looks like it have some room to run based upon valuation.
Related Link: Entire Wireless Tower REIT Sector Hits 52-Week Highs
As reported on Benzinga, Mizuho initiated coverage of the apartment REIT sector on August 25, 2014. Mid-America Apartment Communities (NYSE: MAA) and Camden Property Trust (NYSE: CPT) with its Buy rating; while Home Properties (NYSE: HME) and UDR Inc. (NYSE: UDR) were started at a Neutral rating.
Recently, Benzinga reported that the UBS O'Connor LLC hedge fund unit had sold off most of its REIT shares -- including a large stake in Mid-America Apts. -- to lock in the gains resulting from the run-up in share prices YTD. The largest sales UBS hedge fund sales by dollar volume were in the apartment REIT sector.
REITs in the News:
- Global industrial real estate giant Prologis (NYSE: PLD) recently reported a related party $448 million USD sale of five Class-A properties from its wholly owned Japanese portfolio to Nippon Prologis REIT. NPR is externally managed by a wholly owned subsidiary of Prologis.
- After the bell on Monday, August 25, 2014 small-cap shopping center real estate trust Whitestone REIT (NYSE: WSR) declared a $0.285 quarterly dividend to be paid to common shareholders, which are payable monthly in three installments of $0.095 per common share and OP unit. Whitestone is currently the second highest yielding REIT in the shopping center sector with the current dividend yielding ~7.56 percent.
Notable Real Estate News:
- On August 26, 2014, Ocwen Financial related entity Altisource Portfolio Solutions (NASDAQ: ASPS) completed a previously announced restructuring which gives it more flexibility with regard to future stock buy-backs. The Ocwen entities have been under investigation by the New York Department of Financial Services regarding related party transactions.
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