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%.












All copyrights for this article are reserved to This Publisher