NEW YORK (TheStreet) -- Stocks in the real estate investment trust space were mostly higher on Wednesday as the sector gains traction with the investing community.
REIT's have a distinct advantage over broader market investing, Greg Genovese, president and CEO of Pacific Valley Realty Capital, told TheStreet. He said the group's rise is due in part to the equities' ability to generally offer better yields and cash flow than dividend-paying stocks.
There is simply more demand for REITs nowadays as well, he said, and that demand continues to increase.
Morningstar (MORN) noted that REITs have been catching on with a number of exchange-traded fund investors who consider them as potential hedges against inflation. The investment research firm pointed to inflows of $312 million to the iShares Dow Jones U.S. Real Estate (IYR), and $371 million of net inflows to the Vanguard REIT Index (VNQ), in the third quarter as evidence of the growing interest in REITs.Genovese added that the REIT sector as a whole has not yet fully recovered from its highs before the recession, offering greater upside potential for investors in the space because "the blood has already been spilled and the liquidity crisis is no longer what it was." Among REIT gainers on Wednesday was Host Hotels & Resorts (HST), gaining 1.4% in afternoon trading. The lodging REIT said Wednesday it narrowed its quarterly losses, grew revenue by 11.4% and revPAR, or revenue per available room -- a key metric in the hotel industry -- by 8.8% thanks to higher average daily rates and an increase in occupancy. Shares of Plum Creek Timber (PCL), due to report its quarterly earnings later this month, jumped 3.4%.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- 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 + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV