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July 3, 2019, 12:55 p.m. EDT

REIT stocks rally as high dividend yielders boosted by drop in Treasury yields

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By Tomi Kilgore

Shares of real estate investment trusts rallied Wednesday, as the drop in the 10-year Treasury note yield to a 2 1/2-year low helped make high dividend yielders more attractive. The SPDR Real Estate Select Sector ETF /zigman2/quotes/207325179/composite XLRE -0.57% hiked up 1.3%, to lead all of the S&P 500's /zigman2/quotes/210599714/realtime SPX +0.48% 11 sectors higher. Of the REIT ETF's (XLRE) 32 components, 31 traded higher. Among the XLRE's more-active components, shares of Host Hotels & Resorts Inc. /zigman2/quotes/201760234/composite HST -0.75% rose 1.3%, Weyerhaeuser Co. /zigman2/quotes/200438029/composite WY -5.83% gained 1.2%, Kimco Realty Corp. /zigman2/quotes/202836571/composite KIM -5.12% tacked on 0.9%, Ventas Inc. /zigman2/quotes/206376229/composite VTR -4.92% added 2.2% and American Tower REIT /zigman2/quotes/200890312/composite AMT +0.02% climbed 2.2%. Of the XLRE's highest yielders, Macerich Co.'s stock /zigman2/quotes/203054096/composite MAC -5.94% yields 9.03% and slipped 0.1% after gaining 2.4% on Tuesday; and Iron Mountain Inc. shares /zigman2/quotes/208929343/composite IRM +0.23% gained 0.9% and yields 7.68%, after surging 2.9% on Tuesday. The XLRE's implied dividend yield is 3.24%, compared with the S&P 500's yield of 1.92%. The yield on the 10-year Treasury note fell 2.4 basis points to 1.952%, on track for the lowest close since November 2016.

/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
$8.48 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
$16.00 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
$5.06 billion
Rev. per Employee
$2.16M
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/zigman2/quotes/206376229/composite
US : U.S.: NYSE
$ 34.95
-1.81 -4.92%
Volume: 7.95M
May 29, 2020 3:59p
P/E Ratio
16.71
Dividend Yield
9.07%
Market Cap
$13.71 billion
Rev. per Employee
$7.49M
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/zigman2/quotes/200890312/composite
US : U.S.: NYSE
$ 258.17
+0.05 +0.02%
Volume: 2.14M
May 29, 2020 3:59p
P/E Ratio
60.45
Dividend Yield
1.60%
Market Cap
$114.43 billion
Rev. per Employee
$1.48M
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/zigman2/quotes/203054096/composite
US : U.S.: NYSE
$ 6.81
-0.43 -5.94%
Volume: 8.73M
May 29, 2020 3:59p
P/E Ratio
6.98
Dividend Yield
20.98%
Market Cap
$1.02 billion
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
$7.40 billion
Rev. per Employee
$150,383
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