- via Bloomberg's Lily Katz
- While analyst Michael Mueller and team don't sound thrilled about REIT prospects their balanced stance for 2018 compares to the cautious outlook issued one year ago. The largest negative: Investors' "risk-on" attitude means money won't be gushing into the defensive REIT sector (VNQ, IYR).
- There's also the idea that lower corporate tax rates won't be of that much benefit to REITs (which mostly don't pay corporate taxes).
- Positives include decent valuations and possibly better tax treatment for dividends.
- Top ideas in malls: Macerich (NYSE:MAC) and GGP; in strip centers: Retail Properties (NYSE:RPAI) and Federal Realty (NYSE:FRT); in apartments: Camden Property (NYSE:CPT) and Essex Property (NYSE:ESS); in offices: SL Green (NYSE:SLG) and Washington REIT (NYSE:WRE); in net lease: Vereit (NYSE:VER); in industrial: STAG; in health care: HCP.
- Upgraded to Overweight from Neutral: American Homes 4 Rent (NYSE:AMH), Camden Property (CPT), HCP, Retail Property (RPAI), and STAG.
- Downgraded to Underweight from Neutral: ACC, DCT, DRE, EDR, EPR, FR, LPT, PSB, REXR, RLGY, RMAX
- Now read: Weekly Update: Redeemed Issues
Original article