This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Real Estate Funds Rally on Bullish Signals

Stocks in this article: FCH KRC CBL

TALLAHASSEE, Fla. ( TheStreet) -- Real estate funds rallied this week as new-homes sales jumped 11% in June. Existing-home sales rose 3.6%.

For the week ending July 30, the average real estate fund we track gained 3.5%, excluding inverse funds that sell short property stocks.

Competing measurements of housing prices point to a bullish sentiment. The S&P Case-Shiller Index, which reviews prices in 20 metropolitan areas, bottomed out, and the more sensitive Radar Logic RPX Monthly Housing Market Report showed a clear reversal in direction with a two-month increase of 4.8% in the price paid per square foot since late March.

With mortgage applications on the rise and June's median price of existing homes climbing 10.3% since January, Federal Reserve Chairman Ben Bernanke described the real estate recession as "moderating."

The best-performing fund, Direxion Daily Real Estate Bull 3X Shares (DRN), is brand new. It popped 14% in the five trading days under review. The fund is 300% leveraged to the daily performance of the MSCI US REIT Index.

The fund's initial REIT weightings are 29% specialized, 25% retail, 17% office, 15% residential, 9% diversified and 5% industrial. Top-performing real estate investment trusts in the index include FelCor Lodging Trust (FCH), up 14%; Kilroy Realty (KRC), up 13%; CBL & Associates Properties (CBL), up 11%; and SL Green Realty (SLG) up 10%.

The second-best-performing fund is a closed-end fund named DWS RREEF Real Estate Fund (SRQ). One of its 10 largest holdings, Equity Residential (EQR) jumped 9.8% in one week. The company, which owns more apartment buildings than any other tradable REIT, reported second-quarter funds from operations of 58 cents a share, beating estimates.

1 of 2

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs