The ALPS REITs Dividend dogs ETFs (RDOG ) gained 4.88% last week, topping the overall REITs market and the US stock market.
RDOG was propelled by a series of positive earnings for its underlying REITs, as well as positive sentiment around the “peak” of inflation that could slow the Fed’s tightening cycle, ALPS wrote in a recent preview.
With the month of July CPI impression, REITs have rebounded from their relative low set in June as long-term interest rates also fell in conjunction with weaker inflationary expectations for the future. While REITs tend to act more defensively during periods of inflation due to their CPI rental rate adjustments each year, lower long-term interest rates provide REITs with greater financing flexibility for their real estate acquisitions and renovations, according to ALPS. Rental prices rose another 0.7% sequentially from June and 5.7% year-on-year.
Each of the nine RDOGs REITs The segments saw positive returns last week, led by its Hotels & Resort REITs. Trusting Service Properties (SVCweighting of 2.82% as of August 12) returned 11.40% last week after a consecutive profit recovery in which the company strengthened its liquidity with the sale of 60 hotels to bring it back into compliance with its debt covenants, according to ALPS. The hotel operator also contributed to last week’s comeback RLJ Lodging Trust (RLJweighting of 2.31% as of August 12), which rose almost 8% after excellent funds from operations (FFO) earnings the previous week on increased business travel to the United States.
According ALPSwithin RDOG’s office REIT segment, Vornado Realty Trust (WNV, 2.13% weighting as of Aug. 12) jumped more than 10% last week after a Bloomberg analyst cited higher-quality buildings attracting the bulk of demand for office space in the United States. United with above-average occupancy and pricing power. SL Green Realty (SLGweight of 2.09% as of August 12) also rose more than 8.50% last week on positive sentiment about higher quality office space for its properties in Manhattan, according to ALPS.
RDOG provides exposure in the United States. Investors seeking global exposure may consider the Cambria Global Real Estate ETFs (BLDG ) and the DBX ETFs Trust – Xtrackers International Real Estate ETFs (HAUZ ).
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