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July 5, 2019, 12:05 p.m. EDT

REIT stocks in broad selloff as bond yields rise

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By Tomi Kilgore

Shares of real estate investment trust are selling off in unanimous fashion, as the better-than-expected June jobs data has fueled in a big jump in Treasury yields. The SPDR Real Estate Select Sector ETF /zigman2/quotes/207325179/composite XLRE +0.96% shed 1.0% in midday trading, with all 32 of its equity components losing ground. The REIT ETF (XLRE) tends to act as a bond proxy given its relatively high dividend yield, which means it becomes less attractive to investors when bond prices fall and bond yields rise. The 10-year Treasury yield jumps 10.2 basis points to 2.055% after closing Wednesday at the lowest yield since November 2016. The XLRE's yield is 3.26%, compared with the implied yield for the S&P 500 /zigman2/quotes/210599714/realtime SPX -0.39% of 1.93%. Among the XLRE's most-active components, shares of Host Hotels & Resorts Inc. /zigman2/quotes/201760234/composite HST +0.12% declined 0.8%, Weyerhaeuser Co. /zigman2/quotes/200438029/composite WY +0.93% lost 1.3%, HCP Inc. /zigman2/quotes/205497622/composite HCP +1.05% dropped 1.5% and Kimco Realty Co. /zigman2/quotes/202836571/composite KIM +1.60% slipped 0.5%. Of the XLRE's highest yielders, shares of Macerich Co. /zigman2/quotes/203054096/composite MAC -0.76% fell 0.4% and yields 9.05%, while Iron Mountain Inc. /zigman2/quotes/208929343/composite IRM +2.23% slid 1.7% and yields 7.78%.

/zigman2/quotes/207325179/composite
US : U.S.: NYSE Arca
$ 39.91
+0.38 +0.96%
Volume: 2.31M
Oct. 18, 2019 8:00p
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/zigman2/quotes/210599714/realtime
US : S&P US
2,986.20
-11.75 -0.39%
Volume: 1.99B
Oct. 18, 2019 5:08p
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/zigman2/quotes/201760234/composite
US : U.S.: NYSE
$ 16.44
+0.02 +0.12%
Volume: 4.99M
Oct. 18, 2019 6:30p
P/E Ratio
11.10
Dividend Yield
4.87%
Market Cap
$12.00 billion
Rev. per Employee
$30.02M
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/zigman2/quotes/200438029/composite
US : U.S.: NYSE
$ 28.28
+0.26 +0.93%
Volume: 3.50M
Oct. 18, 2019 6:30p
P/E Ratio
6,427
Dividend Yield
4.81%
Market Cap
$21.07 billion
Rev. per Employee
$803,871
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/zigman2/quotes/205497622/composite
US : U.S.: NYSE
$ 37.39
+0.39 +1.05%
Volume: 2.17M
Oct. 18, 2019 6:30p
P/E Ratio
18.36
Dividend Yield
3.96%
Market Cap
$18.36 billion
Rev. per Employee
$9.19M
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/zigman2/quotes/202836571/composite
US : U.S.: NYSE
$ 20.92
+0.33 +1.60%
Volume: 3.09M
Oct. 18, 2019 6:30p
P/E Ratio
28.44
Dividend Yield
5.35%
Market Cap
$8.83 billion
Rev. per Employee
$2.16M
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/zigman2/quotes/203054096/composite
US : U.S.: NYSE
$ 27.40
-0.21 -0.76%
Volume: 1.30M
Oct. 18, 2019 6:30p
P/E Ratio
36.70
Dividend Yield
10.95%
Market Cap
$3.87 billion
Rev. per Employee
$1.33M
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/zigman2/quotes/208929343/composite
US : U.S.: NYSE
$ 33.50
+0.73 +2.23%
Volume: 4.59M
Oct. 18, 2019 6:30p
P/E Ratio
32.96
Dividend Yield
7.30%
Market Cap
$9.62 billion
Rev. per Employee
$150,383
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