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Self storage and hotel REITs dragged the REIT indexes down this week, with the FTSE Nareit All Equity REITs index down by 2.40%.
Comparatively, the broader S&P 500 index and the Real Estate Select Sector SPDR ETF index fell 2.09% on a weekly basis.
CubeSmart (CUBE) was down by 5.67% on an average, Extra Space Storage (EXR) by 4.38% and Public Storage (PSA) by 3.61% in the last five days.
Host Hotels & Resorts (HST) was down 3.95% in the last five days, despite declaring quarterly and special dividend this week. Apple Hospitality REIT (APLE) fell 3.60% this week.
Here is a look at the performance of the REIT subsectors this week:
On a positive note, JPMorgan analysts said they were constructive on U.S. REITs heading into 2023 and sees the sector holding up better than others against recession risks.
Strip malls, net lease-exposed names and industrial stocks were preferred by the analysts, who were especially bullish on commercial real estate brokers.
Offices and malls were still the least preferred sectors for the analysts.
