Michael Mueller, Executive Director and Senior Analyst in Equity research of J.P. Morgan Securities Inc., continues our discussion of REITS with his perspective on the current state of REITS:
TWST: This is the first time in several years that the REITs group has not outperformed the market. What’s going on?
Mr. Mueller: A lot of it has come from pressure due to non-dedicated investors essentially rotating out of this space. I think we have a group of folks who have, over the past few years, not necessarily liked the valuation levels of the REIT space. I think they would have preferred to be elsewhere but didn’t really have a trigger to rotate out of this space given the momentum and larger benchmark weightings. I think what happened at the beginning of the year is there was a lot of confidence in the broader markets and people saw higher growth rates picking up outside of the REIT space. They just thought they could make more money elsewhere in the market. That was the trigger to actually start rotating out of this space.
For our full report on REITS, including several industry analysts and CEO interviews, click here.
Mall REITs and Strip Center REITs Outlook
July 31, 2009
BMO Capital Markets REITs Mavens John Kim and Jeremy Metz See REITs Rebound, but only for Specific Names
May 07, 2018
Current Diagnostic Test Suppliers to Benefit from Regulatory Changes
November 18, 2010
Questcor Pharmaceuticals Inc (QCOR) Positioned for 50% Gain from Current Price with Steady Growth of Acthar Drug
August 07, 2013
Suncor Energy Inc. (USA) (SU) Returns 5% of Current Stock Price to Investors Through Dividends and Buybacks
October 11, 2013
