REIT stocks suffer broad weakness despite drop in 10-year Treasury …

Shares of real estate investment trusts (REITs) suffered a broad selloff in afternoon trading Tuesday, despite another tumble in the 10-year Treasury yield to a record low. REITs tend to outperform when Treasurys rally and yields fall, as their relatively high dividend yields make them more attractive in a lower yield environment, and their usual relative price stability makes tends to make them attractive in a volatile market environment. The SPDR Real Estate Select Sector ETF

XLRE, -2.51%

dropped 2.4%, with 30 of 31 components losing ground, just a little better than the S&P 500’s

SPX, -3.03%

2.8% decline. The REIT ETF’s yield is 2.93% while the implied yield for the S&P 500 is 1.94%. Meanwhile, the 10-year Treasury yield

TMUBMUSD10Y, -0.13%

fell 6.0 basis points to a record low of 1.317%. Within the REIT sector tracker, the biggest loser and most active stock was Host Hotels & Resorts Inc.

HST, -6.33%,

which slumped 5.8%. Among other more-active components, shares of Ventas Inc.

VTR, -5.14%

declined 5.3%, Digital Realty Trust Inc.

DLR, -1.28%

slipped 0.2% and Simon Property Group Inc.

SPG, -3.91%

gave up 3.7%.

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