REIT stocks stretch win streak to another record as bond yields fall
Shares of real estate investment trusts rallied again Friday, as another drop in Treasury yields helped spark a broad rally in the high-yielding sector. The SPDR Real Estate Select Sector ETF (XLRE) rose 0.8%, with 25 of 31 equity components gaining ground. The ETF (XLRE) was on track for a 7th-straight gain, and 5th-straight record close. The win streak would be the longest since the 7-day up stretch ending Jan. 31, 2019. The REIT sector is viewed by many as a bond proxy, given its relatively stable equity characteristics and high dividend yield. The XLRE's dividend yield is 2.84%, while the yield on the 10-year Treasury note was 1.581%, down 3.6 basis points from Thursday. The 10-year yield has lost 33.8 basis points since the end of 2019, and was approaching the 3-year low of 1.459% hit on Sept. 4, 2019. Meanwhile, the implied yield on the S&P 500 was 1.79%. Among the XLRE's biggest gainers Friday, shares of Digital Realty Trust Inc. (DLR) rose 3.1%,
-Tomi Kilgore; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
February 14, 2020 13:49 ET (18:49 GMT)
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