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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 -0.57% 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 +0.48% of 1.93%. Among the XLRE's most-active components, shares of Host Hotels & Resorts Inc. /zigman2/quotes/201760234/composite HST -0.75% declined 0.8%, Weyerhaeuser Co. /zigman2/quotes/200438029/composite WY -5.83% lost 1.3%, HCP Inc. dropped 1.5% and Kimco Realty Co. /zigman2/quotes/202836571/composite KIM -5.12% slipped 0.5%. Of the XLRE's highest yielders, shares of Macerich Co. /zigman2/quotes/203054096/composite MAC -5.94% fell 0.4% and yields 9.05%, while Iron Mountain Inc. /zigman2/quotes/208929343/composite IRM +0.23% slid 1.7% and yields 7.78%.

/zigman2/quotes/207325179/composite
US : U.S.: NYSE Arca
$ 34.65
-0.20 -0.57%
Volume: 7.83M
May 29, 2020 4:00p
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/zigman2/quotes/210599714/realtime
US : S&P US
3,044.31
+14.58 +0.48%
Volume: 4.38B
May 29, 2020 5:14p
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/zigman2/quotes/201760234/composite
US : U.S.: NYSE
$ 11.94
-0.09 -0.75%
Volume: 17.95M
May 29, 2020 4:00p
P/E Ratio
11.93
Dividend Yield
0.00%
Market Cap
$8.42 billion
Rev. per Employee
$30.02M
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/zigman2/quotes/200438029/composite
US : U.S.: NYSE
$ 20.19
-1.25 -5.83%
Volume: 11.30M
May 29, 2020 4:00p
P/E Ratio
41.53
Dividend Yield
0.00%
Market Cap
$15.07 billion
Rev. per Employee
$803,871
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/zigman2/quotes/202836571/composite
US : U.S.: NYSE
$ 11.11
-0.60 -5.12%
Volume: 38.67M
May 29, 2020 4:00p
P/E Ratio
14.75
Dividend Yield
0.00%
Market Cap
$4.81 billion
Rev. per Employee
$2.16M
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/zigman2/quotes/203054096/composite
US : U.S.: NYSE
$ 6.81
-0.43 -5.94%
Volume: 8.73M
May 29, 2020 4:00p
P/E Ratio
6.98
Dividend Yield
20.98%
Market Cap
$963.85 million
Rev. per Employee
$1.33M
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/zigman2/quotes/208929343/composite
US : U.S.: NYSE
$ 25.76
+0.06 +0.23%
Volume: 4.24M
May 29, 2020 4:00p
P/E Ratio
24.57
Dividend Yield
9.60%
Market Cap
$7.42 billion
Rev. per Employee
$150,383
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