- BMO analysts expect another volatile year for real estate investment trusts as higher cap rates and financing costs and increased macro concerns are offset by more M&A activity.
- Sees MSCI U.S. REIT Index up 1% in 2019, implying a 5% total return, write the analysts led by John Kim.
- HCP (HCP -0.6%) raised to outperform from market perform on its improving balance sheet; price target boosted to $33 from $30.
- CareTrust REIT (CTRE +0.4%) and Duke Realty (DRE -1.2%) raised to outperform from market perform.
- Healthcare Trust (HTA -2.3%) and CubeSmart (CUBE -2.2%) cut to market perform from outperform.
- REIT 2019 top picks: HCP, Equinix (EQIX -1.1%), Prologis (PLD -0.7%), STORE Capital(STOR -1.1%), Sun Communities (SUI -1.2%), and Vornado (VNO -0.7%).
- Source: Bloomberg First Word.
- ETFs: VNQ, IYR, RQI, SCHH, RNP, RFI, KBWY, DRN, NRO, URE, ICF, XLRE, JRS, RWR, SRS, FREL, DRA, DRV, RIF, LRET, REK-OLD, RIT, FRI, FTY, PSR, USRT, WREI-OLD, IARAX, RORE, BBRE, PPTY
- Now read: Where The Action Is: REITs Are Beating The Market
Original article