Money flow creeping back into the laggards, including SRUThe largest retail REIT, Simon Property Group (SPG-NYSE), today reached its highest level since mid June 2020.
The CDN REIT ETF, XRE-TSX, when ratioed against the TSX 60 (XIU-TSX), reached 0.613, the highest level since mid June 2020. The daily Relative Strength Index (RSI) exceeded the 50 level for the first time since, once again, mid June 2020. Interest is building in the REITS, and with low rates virtually assured for years to come, the equity dividend yields will be viewed appetizingly if stability can be shown in the results and outlook for vaccine is encouraging (which it seems to be).
Over the past week, SRU has outperformed the XRE-TSX and the ratio of SRU vs XRE has climbed above the 50 day moving average.
SRU has also been handily outperfoming RIOCAN, which from my perspective, is weighed down by its exposure to enclosed malls, and weaker overall property footprint. Obviously just my perspective, but i feel SRU has more optionality and better mix.
If the IPO of SNOW today on the NASDAQ (valuation of over 100x SALES) represented a cycle peak and we get more distribution to other sectors (the last time we had a greater performance discrepancy between the best and worst sectors of the S&P500 was 1999/2000), the positive early steps back into INDUSTRIALS, RETAIL, AIRLINES and REAL ESTATE will accelerate. But certainly good signs percolating for the time being...
Good luck.