These four real estate investment trusts are now trading below their 200-day moving averages. It’s a sign of real weakness as these same names had hit new 52-week highs just a few months ago. That enough selling has taken place to move the price from highs to below a significant measure like the 200-dma is a problem.
Although each REIT has its own factors, the overall issue might be interest rates and a change in expectations about them. Fed Chair Jerome P
owell this week said inflation is likely to go up as a result of the Trump tariffs. He added that the Fed is “well positioned to wait for greater clarity” before adjusting rate policy.
4 REITs Below 200-Day Moving Averages
Healthcare Realty
The REIT first dropped below its 200-day moving average in January 2025. The price finally slid below it with apparent finality in early April. This week’s bounce is a positive and yet the trust remains below both the 50-day and the 200-day moving averages.
Healthcare Realty Trust has a market capitalization of $5.62 billion. It trades at 1.01 times book value. The debt-to-equity ratio is .99. The REIT pays a 7.75% dividend. The investment firm Wedbush in January downgraded their opinion of Healthcare Realty from “neutral” to “underperform” with a price target reduced from $18 to $16.
LXP Industrial Trust
The price slid below the 200-day moving average in December 2024 and has not crossed above it since then. The early April drop took the price below the January low. This week’s bounce has been unable to take the REIT above the 50-day or the 200-day moving averages.
LXP is an industrial real estate investment trust with a market cap of $2.29 billion. The price-earnings ratio is 56 and it trades at 1.09 times book. The debt-to-equity ratio is .76. The company pays a 7.04% dividend.
Ready Capital Corporation
The early May gap down came as news of a lawsuit emerged, alleging misleading statements on loans. The REIT had already dropped below its 200-day moving average in early August 2024 and had remained below it.
Ready Capital has a market cap of $754 million. It’s a holding of the Russell 2000 exchange traded fund. The forward price-earnings ratio is 6 and the REIT trades at 41% of its book value. The debt-to-equity ratio is 4.16. Ready’s most recent dividend came to 11.72%.
UMH Properties Trust
The price tested the 200-day moving average in January, February and March and then finally dropped below it in April. Note that the peak in September 2024 was just above $20 and that this month’s low hit $15.
UMH’s market cap is $1.43 billion. The residential REIT is a Russell 2000 stock. Average daily volume is just 389, 000 shares, a lower number of shares traded than others in the sector. The company pays a 5.03% dividend.
Real Estate Select Sector SPDR Fund
This fund holds a portolio of 31 REITS. It’s a way of looking at the overall performance of the sector. Note how the price trades below the 200-day and the 50-day moving average even after a decent bounce off the early April low.
Stats courtesy of FinViz.com. Charts courtesy of Stockcharts.com.
More analysis and commentary at johnnavin.substack.com.
Read the full article here