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New York Metropolis REIT Inc. NYC slumped to even decrease lows this week and now trades beneath $2 after going for $13 as lately as April.
Many actual property funding trusts (REITs) have had a difficult yr with the Federal Reserve steadily taking rates of interest larger. Few, nonetheless, have skilled the relentless promoting of this REIT.
New York Metropolis REIT invests in properties in all 5 boroughs of the Massive Apple, however many of the portfolio is concentrated in Manhattan. Funds from operations (FFO) for the third quarter confirmed a unfavourable $4.1 million. It might be tough for the corporate to take care of the present dividend yield of 21.7%.
With a market capitalization of $27.77 million, New York Metropolis REIT is small in comparison with many of the different New York Inventory Change-traded actual property funding trusts. Common day by day quantity is comparatively gentle with simply 27,797 shares traded. The REIT is buying and selling at simply 0.08% of its guide worth, a really low determine.
The final information merchandise on the corporate’s web site is dated Sept. 6, and reads “NYC Advisor and Its Associates Categorical Confidence in NYC REIT With $2.5 Million Share Buy, Inventory Election.”
The day by day worth chart for New York Metropolis REIT appears to be like like this:
The slide from April to late August is very deep, and the September rally solely helped for a comparatively temporary second. From the spring peak of $13 to the present worth of $1.84 represents an 86% drop in worth. The REIT is buying and selling properly beneath each the downtrending 50-day transferring common (the blue line) and the 200-day transferring common (the purple line). The relative energy indicator (RSI) beneath the worth chart has dropped into the Oversold vary.
Right here’s the month-to-month chart for New York Metropolis REIT:
After the corporate’s preliminary public providing in August 2020, it by no means made it again to that month’s excessive.
Weekly REIT Report: REITs are some of the misunderstood funding choices, making it tough for traders to identify unimaginable alternatives till it’s too late. Benzinga’s in-house actual property analysis crew has been working arduous to determine the best alternatives in immediately’s market, which you’ll acquire entry to without cost by signing up for Benzinga’s Weekly REIT Report.
Extra on Actual Property from Benzinga
Charts courtesy of StockCharts
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