Best and Worst Performing REITs for 2013
The list of Best and Worst REIT stock performers for 2013 highlights outperformance
by Financial Commercial REITs and Hotel REITs, as well as
underperformance by Financial Mortgage REITs. As always, the greatest stock
price rebound is delivered by smaller cap stocks that tend to
exaggerate perceived negatives, demonstrating sudden improvement as investors
change focus from risk to opportunity.
The list of Best performers for 2013 includes 2 REITs driven by merger
and takeover interest, CommonWealth REIT and Parkway Properties.
Investors may want to consider potential turnaround for those on the list
of Worst performers, as the list includes some well established REITs
with excellent long term records of dividend distributions, including Digital
Realty Trust, HCP Inc, Rayonier and Universal Health
Income Trust. Financial Mortgage REITs offer investors the highest
yields, despite dividend reductions, and are now trading at significant
to book values. Outlook for Financial Mortgage REITs is still unresolved,
given uncertainties over Fannie Mae and Freddie Mac, and the need for
eventual tapering by the Federal Reserve.