The Real Deal Miami

Real estate firms bloodied in stock market tumble

REITs among worst-hit on volatile day of trading

August 25, 2015 11:00AM
By Rey Mashayekhi

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The New York Stock Exchange and Marc Holliday and Steven Roth (inset)

The New York Stock Exchange with Marc Holliday and Steven Roth (inset)

From the New York website: From commercial brokerages to real estate investment trusts, it was hard to find a publicly-traded real estate firm that didn’t take a beating on one of the most volatile days in the stock market’s history.

As markets in China and Europe plunged early Monday morning, so too did prices in New York when trading opened — with the Dow Jones Industrial Average falling 1,000 points shortly after 9 a.m. before gradually making up ground over the course of the day. The Dow still ended the day down 3.6 percent while the Standard & Poor’s 500 dropped 3.9 percent, and real estate stocks followed suit — with the MSCI US REIT Index, which measures national REIT performance, falling 4.7 percent on the day.

Equity One, based in Miami and New York, saw its REIT shares drop 16.5 percent to close at $20.48.

New York’s other major REITs were not exempt from the decline, with SL Green Realty’s stock falling 5.7 percent to close at $105.25 per share and Vornado Realty Trust slipping 5.1 percent to $87.43. Boston Properties saw its share price drop 5.3 percent to close at $112.33 per share, while residential REITs like AvalonBay ($165.55 per share, -4.6 percent) and Equity Residential ($70.55, -5.2 percent) experienced declines of their own.

Among other REITs, Acadia Realty Trust ($29.89, -5.4 percent), Empire State Realty Trust ($16.41, -5.6 percent) and New York REIT ($9.53, – 5.3 percent) all saw share prices take a tumble, while non-REIT status didn’t offer a reprieve to Brookfield Property Partners ($20.51, -4.1 percent) and Forest City Enterprises ($21.40, -3.2 percent).

Commercial brokerages, meanwhile, were among the hardest hit — with Monday’s volatility compounding losses already felt this month. CBRE Group’s share price experienced a 6.9 percent drop to close at $32.51 per share, while JLL slipped 8.2 percent to $149.28 per share. HFF fell 3.4 percent to $36.60 at close, while Marcus & Millichap dropped 6.9 percent to $42.71 per share.

How these stock values — and the global economy at large — fare through the rest of the week remains to be seen.