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Value Hunting Among the Hardest Hit Large-Cap Dividend REITs

24/7 Wall St. has been analyzing and evaluating the real estate investment trust (REIT) sector during the past couple of weeks as the risk of rising interest rates is shaking out many of the REIT investors. The sector’s high dividends had reached what some were calling a bubble as the dividend yields had compressed to relative historic lows. Now that stocks, and REITs in particular, have been hit so hard, we wanted to take a look out there to see which REITs in the S&P 500 Index had sold off the most.

The good news is that it appears some investors are now starting to pick through the rubble to look for bargains. If the economy is going to keep improving, some of the battered stocks likely will recover handily, even if they do have interest rate risks attached to them.

We evaluated performance over the past week and month before today’s price changes, and then looked at today’s mid-day price performance. We evaluated the discounts to 52-week highs and the dividend, and also took a look at the market cap of each so that investors can understand how many billions of valuation have eroded in the past month out of the REIT sector.

Kimco Realty Corp. (NYSE: KIM) was off 7.8% in the past week alone and down a total of 11.6% in the past month, but shares so far on Thursday are up 0.9% at $21.55, against a 52-week trading range of $17.77 to $25.09. Kimco is a shopping center REIT with a market cap of $8.8 billion, and its dividend yield is 3.8%.

Weyerhaeuser Co. (NYSE: WY) was down by 7.2% in the past week and down a total of 8.2% over the past month, but shares so far on Thursday are up 0.5% at $28.46, against a 52-week trading range of $20.06 to $33.24. This is a forest-lands REIT with a dividend yield currently of 2.7%, and its market cap is $15.6 billion.

ProLogis Inc. (NYSE: PLD) was off by 7.2% in the past week and down 9.3% over the past month. Unfortunately, these losses are even worse as the shares are down 0.6% at $38.63 for this office warehouse REIT leader. Its 52-week trading range is $30.79 to $45.52, its dividend yield is currently 2.8% and its market cap is $19.2 billion.

Macerich Co. (NYSE: MAC) was off 6.4% in the past week but was down almost twice as much in the past month with a loss of 12.2%. Thursday’s mid-day performance is up about 1.4% at $62.48, against a 52-week trading range of $54.32 to $72.19. This shopping center REIT has a yield of 3.6% and its market cap is $8.6 billion.

Vornado Realty Trust (NYSE: VNO) was down by 6% in the past week and down 8.4% over the past month. Shares are by and large unchanged with the price down two cents at $79.19 so far on Thursday. Vornado is a commercial real estate REIT with a 52-week trading range of $72.64 to $88.73, a dividend yield of 3.7% and a market cap of $14.8 billion.

Host Hotels & Resorts Inc. (NYSE: HST) was down by 5.4% in the past week and down 7.8% over the past month. Thursday’s performance for this hotel REIT is down only three cents at $16.97, against a 52-week trading range of $13.58 to $18.87. Its dividend yield currently is only 2.2%, and its market cap is $12.6 billion.

Keep in mind that these are not the worst performing of all REITs. These are just the worst among those listed in the S&P 500, as we wanted to see how much money has come out of the sector’s leadership players. We used weekly and monthly performance metrics from Finviz.com and other valuation metrics came from Yahoo! Finance.