Most of the major real estate investment trusts (REITs) closed in the red Wednesday as the Federal Open Market Committee minutes became available. The hawkish tone of those minutes apparently makes it tough on dividend payers like REITs.
The Real Estate Select SPDR FUND (XLRE) ETF ended off by 0.07%:
This is the NASDAQ-traded fund consisting of more than 20 real estate investment trusts. For a basic idea of what it covers, its top three components are American Tower Corp AMT, ProLogis Inc PLD and Crown Castle International Corp CCI.
At this closing price, the Real Estate Select SPDR pays a dividend of 3.06%. Note how much the sector has declined over the last 6 months or so and how it seems to be bouncing off of that mid-June low.
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Park Hotels & Resorts Inc PK dropped today by 3.82%:
Although this REIT is a major part of the real estate investment trust sector, it’s also treated by institutional investors as a “consumer discretionary” item because of Park’s destination resort holdings, such as those in Hawaii and Miami Beach. A more hawkish Fed could mean fewer or less lengthy vacation trips for consumers.
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That’s a lower closing low than the earlier summer dips. Park Hotel & Resorts pays a 0.29% dividend.
Not investment advice. For educational purposes only.
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