Major Office REIT Stocks Plunge Amid Slow Return-To-Office Rates: 5 Dramatic Charts To Watch
Portfolio Pulse from Piero Cingari
Major office REIT stocks have plunged due to slow return-to-office rates, with many reaching all-time lows. Office occupancy in the 10 most populous U.S. cities is only half of pre-pandemic levels, indicating a new normal for office occupancy.
May 22, 2023 | 2:39 pm
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NEGATIVE IMPACT
Alexandria Real Estate Equities' share price has declined to $115, a 50% drop from its all-time high of $225. The company is currently testing a key support level, and failure to hold above this level could exacerbate negative market reactions.
The slow return-to-office rates have negatively impacted Alexandria Real Estate Equities' share prices, causing them to decline significantly. The company is currently testing a key support level, and failure to hold above this level could lead to further declines in the stock price.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100
NEGATIVE IMPACT
Douglas Emmett, Inc.'s shares have collapsed 75% since their all-time high in December 2019. The short interest has now risen to 8.7% of the shares outstanding, the third highest among office REITs.
Douglas Emmett, Inc.'s share prices have been severely impacted by the slow return-to-office rates, causing them to collapse 75% since their all-time high. The rising short interest indicates that investors are expecting further declines in the stock price.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100
NEGATIVE IMPACT
Kilroy Realty Corp.'s shares have experienced a steep decline for the past year, mirroring the downturn they saw from February 2007 to March 2009. Short interest on the stock has risen to 5.2% in May 2023, up from a low of 1% three years ago.
Kilroy Realty Corp.'s share prices have been negatively impacted by the slow return-to-office rates, causing them to decline steeply. The rising short interest indicates that investors are expecting further declines in the stock price.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100
NEGATIVE IMPACT
SL Green Realty Corp's shares have lost a third of their value since the start of the year, falling below their IPO levels. The short interest has increased to 28% of outstanding shares, making it the most-shorted office REIT in the market.
The slow return-to-office rates have negatively impacted SL Green Realty Corp's share prices, causing them to fall below their IPO levels. The high short interest indicates that investors are expecting further declines in the stock price.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100
NEGATIVE IMPACT
Vornado Realty Trust's shares have fallen to 27-year lows, losing 37% of their value YTD. The short interest in VNO has risen to about 10% of the shares outstanding, near the all-time high of 13% hit in 2009.
Vornado Realty Trust's share prices have been severely impacted by the slow return-to-office rates, causing them to fall to 27-year lows. The rising short interest indicates that investors are expecting further declines in the stock price.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100