{"id":13049,"date":"2023-08-19T16:48:31","date_gmt":"2023-08-19T16:48:31","guid":{"rendered":"https:\/\/isafespend.com\/investing\/5-reits-dropping-to-new-lows-on-higher-rates-concerns\/"},"modified":"2023-08-19T16:48:32","modified_gmt":"2023-08-19T16:48:32","slug":"5-reits-dropping-to-new-lows-on-higher-rates-concerns","status":"publish","type":"post","link":"https:\/\/isafespend.com\/?p=13049","title":{"rendered":"5 REITs Dropping To New Lows On Higher Rates Concerns"},"content":{"rendered":"
\n

The problem with REITs is that interest rates seem to be on the rise despite earlier expectations that they would be headed down again probably by early to mid-2024.<\/p>\n

The recent action in 10-year Treasury yields \u2014 back up to 4.4% \u2014 and in the 30-fixed mortgage rate \u2014 a 20+ year high of 7.09% \u2014 is an unhappy look for interest-rate sensitive sectors such as real estate investment trusts.<\/p>\n

Many of them dropped to new 52-week lows last week and these 5 caught my attention:<\/p>\n

Crown Castle International is one of the really big REITs with a market capitalization of $43.28 billion. Average daily volume on the New York Stock Exchange comes to 3.09 million shares. The price-earnings ratio is 25.50 and the company is paying a dividend of 6.25%.<\/p>\n

The daily price chart (below) shows the damage so far this year: from a February peak of $150 to the current price \u2014 and new low \u2014 of $100. Note that it trades steadily below both its 50-day moving average (the blue line) and its 200-day moving average (the red line).<\/p>\n

<\/fbs-ad><\/p>\n

Hannan Armstrong Sustainable Infrastructure Capital Trust trades with the rather steep price-earnings ratio of 38 \u2014 that\u2019s above the Shiller p\/e for the Standard and Poor\u2019s 500 which now sits at 31. Market capitalization is $2.16 billion. This REIT pays a 7.51% dividend.<\/p>\n

The daily price chart shows a move from a February high of just above $38 to this week\u2019s low of $20 before a short bounce back. Hannon Armstrong trades below its 50-day and its 200-day moving average. The relative strength index (RSI, below the price chart) suggests that a positive divergence from March to the prsent.<\/p>\n

Medical Properties Trust saw the most single-day volume of the year on Friday and most of it consisted of sell orders. The REIT trades at half its book value with a p\/e of 59. The dividend of 16.74% is likely unsustainable under the current conditions. Market capitalization is $4.49 billion.<\/p>\n

After a decent rally from the late March lows to the late July high, it\u2019s been a relentless \u201cget me out\u201d type of situation during August. Medical Properties Trust trades well below both the 50-day moving average and the 200-day moving average, not a bullish pattern.<\/p>\n

W. P. Carey & Company has a market capitalization of $13.76 billion and average daily volume of 1.07 million shares. The price-earnings ratio is 17.09. The company pays a 6.69% dividend. Earnings have been decent: up 33.50% this year and up 3.70% over the past 5 years.<\/p>\n

The peak price of $83 in late January has given way to the August price of $63.93, a typical type of downtrend for most in the sector. It\u2019s a bearish picture that the stock is unable to make above the 2 significant moving averages.<\/p>\n

Xenia Hotels and Resorts is smaller than the above REITs with a market capitalization of $1.20 billion. It trades with a price-earnings ratio of 23.77 and at just 89% of book value. Average daily volume is relatively light for an NYSE stock at 807,000 shares. The dividend is 3.54%.<\/p>\n

You can see the downtrend now in place on the daily chart below. It\u2019s been unable all this year to gain enough strength to make above the 200-day moving average. Right now, it\u2019s back to well below the 50-day moving average.<\/p>\n

Should interest rates and mortgage rates have peaked, everything could change \u2014 but for now, this sector trends downward.<\/p>\n<\/div>\n

Read the full article here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

The problem with REITs is that interest rates seem to be on the rise despite earlier expectations that they would be headed down again probably by early to mid-2024. The recent action in 10-year Treasury yields \u2014 back up to 4.4% \u2014 and in the 30-fixed mortgage rate \u2014 a 20+ year high of 7.09%<\/p>\n","protected":false},"author":1,"featured_media":13050,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[49],"tags":[],"class_list":{"0":"post-13049","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-investing"},"yoast_head":"\n5 REITs Dropping To New Lows On Higher Rates Concerns | iSafeSpend<\/title>\n<meta name=\"description\" content=\"The problem with REITs is that interest rates seem to be on the rise despite earlier expectations that they would be headed down again probably by early\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/isafespend.com\/?p=13049\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"5 REITs Dropping To New Lows On Higher Rates Concerns | iSafeSpend\" \/>\n<meta property=\"og:description\" content=\"The problem with REITs is that interest rates seem to be on the rise despite earlier expectations that they would be headed down again probably by early\" \/>\n<meta property=\"og:url\" content=\"https:\/\/isafespend.com\/?p=13049\" \/>\n<meta property=\"og:site_name\" content=\"iSafeSpend\" \/>\n<meta property=\"article:published_time\" content=\"2023-08-19T16:48:31+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-08-19T16:48:32+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/isafespend.com\/wp-content\/uploads\/2023\/08\/1692463712_0x0.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"576\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"News Room\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"News Room\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/isafespend.com\/?p=13049#article\",\"isPartOf\":{\"@id\":\"https:\/\/isafespend.com\/?p=13049\"},\"author\":{\"name\":\"News Room\",\"@id\":\"https:\/\/isafespend.com\/#\/schema\/person\/5b8c1c75336efaf09b163cd1eab0c9bf\"},\"headline\":\"5 REITs Dropping To New Lows On Higher Rates Concerns\",\"datePublished\":\"2023-08-19T16:48:31+00:00\",\"dateModified\":\"2023-08-19T16:48:32+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/isafespend.com\/?p=13049\"},\"wordCount\":557,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/isafespend.com\/#organization\"},\"articleSection\":[\"Investing\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/isafespend.com\/?p=13049#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/isafespend.com\/?p=13049\",\"url\":\"https:\/\/isafespend.com\/?p=13049\",\"name\":\"5 REITs Dropping To New Lows On Higher Rates Concerns | iSafeSpend\",\"isPartOf\":{\"@id\":\"https:\/\/isafespend.com\/#website\"},\"datePublished\":\"2023-08-19T16:48:31+00:00\",\"dateModified\":\"2023-08-19T16:48:32+00:00\",\"description\":\"The problem with REITs is that interest rates seem to be on the rise despite earlier expectations that they would be headed down again probably by early\",\"breadcrumb\":{\"@id\":\"https:\/\/isafespend.com\/?p=13049#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/isafespend.com\/?p=13049\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/isafespend.com\/?p=13049#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/isafespend.com\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"5 REITs Dropping To New Lows On Higher Rates Concerns\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/isafespend.com\/#website\",\"url\":\"https:\/\/isafespend.com\/\",\"name\":\"Solutions For Real\",\"description\":\"Latest Finance News and Updates\",\"publisher\":{\"@id\":\"https:\/\/isafespend.com\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/isafespend.com\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/isafespend.com\/#organization\",\"name\":\"Solutions For Real\",\"url\":\"https:\/\/isafespend.com\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/isafespend.com\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/isafespend.com\/wp-content\/uploads\/2023\/08\/sf-logo-1.png\",\"contentUrl\":\"https:\/\/isafespend.com\/wp-content\/uploads\/2023\/08\/sf-logo-1.png\",\"width\":690,\"height\":64,\"caption\":\"Solutions For Real\"},\"image\":{\"@id\":\"https:\/\/isafespend.com\/#\/schema\/logo\/image\/\"}},{\"@type\":\"Person\",\"@id\":\"https:\/\/isafespend.com\/#\/schema\/person\/5b8c1c75336efaf09b163cd1eab0c9bf\",\"name\":\"News Room\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/isafespend.com\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/isafespend.com\/wp-content\/uploads\/2023\/08\/avatar_user_1_1691264579-96x96.png\",\"contentUrl\":\"https:\/\/isafespend.com\/wp-content\/uploads\/2023\/08\/avatar_user_1_1691264579-96x96.png\",\"caption\":\"News Room\"},\"sameAs\":[\"https:\/\/isafespend.com\"],\"url\":\"https:\/\/isafespend.com\/?author=1\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"5 REITs Dropping To New Lows On Higher Rates Concerns | iSafeSpend","description":"The problem with REITs is that interest rates seem to be on the rise despite earlier expectations that they would be headed down again probably by early","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/isafespend.com\/?p=13049","og_locale":"en_US","og_type":"article","og_title":"5 REITs Dropping To New Lows On Higher Rates Concerns | iSafeSpend","og_description":"The problem with REITs is that interest rates seem to be on the rise despite earlier expectations that they would be headed down again probably by early","og_url":"https:\/\/isafespend.com\/?p=13049","og_site_name":"iSafeSpend","article_published_time":"2023-08-19T16:48:31+00:00","article_modified_time":"2023-08-19T16:48:32+00:00","og_image":[{"width":1200,"height":576,"url":"https:\/\/isafespend.com\/wp-content\/uploads\/2023\/08\/1692463712_0x0.jpg","type":"image\/jpeg"}],"author":"News Room","twitter_card":"summary_large_image","twitter_misc":{"Written by":"News Room","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/isafespend.com\/?p=13049#article","isPartOf":{"@id":"https:\/\/isafespend.com\/?p=13049"},"author":{"name":"News Room","@id":"https:\/\/isafespend.com\/#\/schema\/person\/5b8c1c75336efaf09b163cd1eab0c9bf"},"headline":"5 REITs Dropping To New Lows On Higher Rates Concerns","datePublished":"2023-08-19T16:48:31+00:00","dateModified":"2023-08-19T16:48:32+00:00","mainEntityOfPage":{"@id":"https:\/\/isafespend.com\/?p=13049"},"wordCount":557,"commentCount":0,"publisher":{"@id":"https:\/\/isafespend.com\/#organization"},"articleSection":["Investing"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/isafespend.com\/?p=13049#respond"]}]},{"@type":"WebPage","@id":"https:\/\/isafespend.com\/?p=13049","url":"https:\/\/isafespend.com\/?p=13049","name":"5 REITs Dropping To New Lows On Higher Rates Concerns | iSafeSpend","isPartOf":{"@id":"https:\/\/isafespend.com\/#website"},"datePublished":"2023-08-19T16:48:31+00:00","dateModified":"2023-08-19T16:48:32+00:00","description":"The problem with REITs is that interest rates seem to be on the rise despite earlier expectations that they would be headed down again probably by early","breadcrumb":{"@id":"https:\/\/isafespend.com\/?p=13049#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/isafespend.com\/?p=13049"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/isafespend.com\/?p=13049#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/isafespend.com\/"},{"@type":"ListItem","position":2,"name":"5 REITs Dropping To New Lows On Higher Rates Concerns"}]},{"@type":"WebSite","@id":"https:\/\/isafespend.com\/#website","url":"https:\/\/isafespend.com\/","name":"Solutions For Real","description":"Latest Finance News and Updates","publisher":{"@id":"https:\/\/isafespend.com\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/isafespend.com\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/isafespend.com\/#organization","name":"Solutions For Real","url":"https:\/\/isafespend.com\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/isafespend.com\/#\/schema\/logo\/image\/","url":"https:\/\/isafespend.com\/wp-content\/uploads\/2023\/08\/sf-logo-1.png","contentUrl":"https:\/\/isafespend.com\/wp-content\/uploads\/2023\/08\/sf-logo-1.png","width":690,"height":64,"caption":"Solutions For Real"},"image":{"@id":"https:\/\/isafespend.com\/#\/schema\/logo\/image\/"}},{"@type":"Person","@id":"https:\/\/isafespend.com\/#\/schema\/person\/5b8c1c75336efaf09b163cd1eab0c9bf","name":"News Room","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/isafespend.com\/#\/schema\/person\/image\/","url":"https:\/\/isafespend.com\/wp-content\/uploads\/2023\/08\/avatar_user_1_1691264579-96x96.png","contentUrl":"https:\/\/isafespend.com\/wp-content\/uploads\/2023\/08\/avatar_user_1_1691264579-96x96.png","caption":"News Room"},"sameAs":["https:\/\/isafespend.com"],"url":"https:\/\/isafespend.com\/?author=1"}]}},"_links":{"self":[{"href":"https:\/\/isafespend.com\/index.php?rest_route=\/wp\/v2\/posts\/13049","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/isafespend.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/isafespend.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/isafespend.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/isafespend.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=13049"}],"version-history":[{"count":1,"href":"https:\/\/isafespend.com\/index.php?rest_route=\/wp\/v2\/posts\/13049\/revisions"}],"predecessor-version":[{"id":13051,"href":"https:\/\/isafespend.com\/index.php?rest_route=\/wp\/v2\/posts\/13049\/revisions\/13051"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/isafespend.com\/index.php?rest_route=\/wp\/v2\/media\/13050"}],"wp:attachment":[{"href":"https:\/\/isafespend.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=13049"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/isafespend.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=13049"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/isafespend.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=13049"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}