Analyst decries REITs sell-off

Raymond James & Associates Inc. analyst Paul Puryear upgraded eight real estate investment trusts today in the belief that the recent sell-off in the sector has been overdone.
OCT 16, 2008
Raymond James & Associates Inc. analyst Paul Puryear upgraded eight real estate investment trusts today in the belief that the recent sell-off in the sector has been overdone. “Enough, already!” he wrote in a note. “Given our years of real estate experience, we can recognize compelling value when it appears.” Mr. Puryear said there’s been an “unprecedented sell-off among REIT stocks” that caused REIT prices plummet more than 30% so far in October. He blames “indiscriminant selling” by hedge funds, closed-end funds’ facing redemptions and broader market turmoil for the decline. The analyst, who works out of the company’s headquarters in St. Petersburg, Fla., office, raised his ratings on Digital Realty Trust Inc. (DLR) in San Francisco, Corporate Office Properties Trust Inc. (OFC) in Columbia, Md., and Essex Property Trust Inc. (ESS) in Palo Alto, Calif., to “strong buy,” from “outperform.” He also lifted Public Storage Inc. (PSA) of Glendale, Calif., Host Hotels & Resorts Inc. (HST) in Bethesda, Md., Simon Property Group Inc. (SPG) in Indianapolis, Equity Residential (EQR) in Chicago and Realty Income Corp. (O) of Escondido, Calif. to “outperform,” from “market perform.” Many of these REITs represent “the best-in-class REITs operating in various sectors,” with stronger-than-average balance sheets and the ability to weather tough economic times. Mr. Puryear wrote. Wednesday marked the largest-ever single-day decline in the REIT index, he said. So far in 2008, equity REIT returns, which include dividends, are down 22.1%, according to the National Association of Real Estate Investment Trusts of Washington. This still outpaces the Standard & Poor’s 500 index, which is off 30.9%.

Latest News

Mesirow acquires part of flexPATH in second retirement deal of 2026
Mesirow acquires part of flexPATH in second retirement deal of 2026

Chicago-based Mesirow Fiduciary Solutions adds flexPATH's plan-level outsourced fiduciary book, boosting its retirement market reach to $164 billion.

Advisor moves: LPL lands $350M veteran advisor duo in Florida
Advisor moves: LPL lands $350M veteran advisor duo in Florida

Also, Raymond James's employee advisor channel adds breakaways from Wells Fargo and Stifel, while UBS welcomes an ex-Morgan Stanley duo in Indiana.

SEC accuses crypto firm founder of running $425 million Ponzi scheme
SEC accuses crypto firm founder of running $425 million Ponzi scheme

It promised guaranteed principal and 10% monthly returns. The SEC says it invested nothing.

MassMutual Ascend tops $2 billion in RIA annuity sales as advisors warm to income products
MassMutual Ascend tops $2 billion in RIA annuity sales as advisors warm to income products

Ten years after entering the fee-based annuity market, MassMutual Ascend says nearly half its lifetime sales came in the past two years alone – but barriers remain among fee-only advisors.

Fintech bytes: Wealth tech firms target advisor productivity with new integrations
Fintech bytes: Wealth tech firms target advisor productivity with new integrations

Amplify, WealthReach, Zeplyn and Zocks have unveiled partnerships aimed at automating portfolio management, content creation, account opening, and client communication.

SPONSORED Direct indexing webinar targets tax-loss harvesting amid market swings

Northern Trust’s Ken Lassner shows advisors how to convert volatility into after-tax portfolio gains

SPONSORED Who builds the income when the pension disappears?

Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income