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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 -1.92% 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 -0.80% of 1.93%. Among the XLRE's most-active components, shares of Host Hotels & Resorts Inc. /zigman2/quotes/201760234/composite HST -1.77% declined 0.8%, Weyerhaeuser Co. /zigman2/quotes/200438029/composite WY +0.28% lost 1.3%, HCP Inc. dropped 1.5% and Kimco Realty Co. /zigman2/quotes/202836571/composite KIM +3.23% slipped 0.5%. Of the XLRE's highest yielders, shares of Macerich Co. /zigman2/quotes/203054096/composite MAC -0.61% fell 0.4% and yields 9.05%, while Iron Mountain Inc. /zigman2/quotes/208929343/composite IRM -0.64% slid 1.7% and yields 7.78%.

/zigman2/quotes/207325179/composite
US : U.S.: NYSE Arca
$ 35.74
-0.70 -1.92%
Volume: 5.52M
Aug. 11, 2020 4:00p
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/zigman2/quotes/210599714/realtime
US : S&P US
3,333.69
-26.78 -0.80%
Volume: 2.90B
Aug. 11, 2020 5:08p
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/zigman2/quotes/201760234/composite
US : U.S.: NYSE
$ 11.67
-0.21 -1.77%
Volume: 9.95M
Aug. 11, 2020 4:03p
P/E Ratio
101.39
Dividend Yield
0.00%
Market Cap
$8.38 billion
Rev. per Employee
$30.02M
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/zigman2/quotes/200438029/composite
US : U.S.: NYSE
$ 28.89
+0.08 +0.28%
Volume: 4.80M
Aug. 11, 2020 4:00p
P/E Ratio
70.29
Dividend Yield
0.00%
Market Cap
$21.50 billion
Rev. per Employee
$803,871
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/zigman2/quotes/202836571/composite
US : U.S.: NYSE
$ 12.46
+0.39 +3.23%
Volume: 5.23M
Aug. 11, 2020 4:02p
P/E Ratio
5.52
Dividend Yield
0.00%
Market Cap
$5.22 billion
Rev. per Employee
$2.16M
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/zigman2/quotes/203054096/composite
US : U.S.: NYSE
$ 8.18
-0.05 -0.61%
Volume: 9.04M
Aug. 11, 2020 4:00p
P/E Ratio
12.54
Dividend Yield
7.33%
Market Cap
$1.98 billion
Rev. per Employee
$1.33M
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/zigman2/quotes/208929343/composite
US : U.S.: NYSE
$ 29.56
-0.19 -0.64%
Volume: 2.85M
Aug. 11, 2020 4:04p
P/E Ratio
42.08
Dividend Yield
8.37%
Market Cap
$8.57 billion
Rev. per Employee
$150,383
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