Average short interest in US REITs relatively unchanged in May

Average short interest across US equity real estate investment trusts barely budged in May, ticking up a single basis point from the month prior, according to S&P Global Market Intelligence data.

Advertising sector logs biggest increase in short interest

The advertising segment saw the most new short interest on average across all property types, rising 72 basis points from the previous month to 3.4% of shares outstanding as of May 31.

That spike was mainly attributed to OUTFRONT Media Inc., which saw short interest increase 1.0 percentage points to 4.1% of its shares outstanding, the ninth-largest gain among all US REITs in May.

Fellow advertising REIT Lamar Advertising Co., logged a 45 basis-point increase to 2.5% of its shares outstanding during the same period.

The regional mall sector had the next-largest hike in average short interest in May, with a 44 basis point rise to 4.2% of shares outstanding. Within the sector, Macerich Co. had the largest increase and was the fourth-biggest gainer across the entire REIT industry, with a 1.3 percentage point rise to 6.9% of shares outstanding. Another regional mall landlord, CBL & Associates Properties Inc., recorded a slight increase of 8 basis points to 4.5% of shares outstanding.

In contrast, Simon Property Group Inc. logged a 7 basis-point decline in short interest to 1.3% of shares outstanding.

The farmland REIT sector followed with the third-highest increase in short interest with a 28 basis-point hike to 4.3% of shares outstanding as of the end of May.

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On the other side of the spectrum, the communications sector saw the biggest decline in average short interest across all property types, falling 45 basis points from the previous month to 2.7% of shares outstanding as of May 31.

The healthcare segment was next with a 14 basis-point drop in average short interest to 4.4% of shares outstanding as of May 31. It was followed by the industrial sector, which posted a decrease of 11 basis points to 2.0% of shares outstanding.

REITs with the most change in short interest

Diversified REIT Clipper Realty Inc. logged the largest increase in short interest in May with a 2.5 percentage point jump to 3.0% of shares outstanding. Following were multifamily focused Apartment Income REIT Corp., which saw short interest rise about 2.2 percentage points and office REIT Net Lease Office Properties, with an increase of 2.0 percentage points.

REITs with largest short positions

Despite posting the largest short interest drop in the month of May, healthcare REIT Medical Properties Trust Inc. remained the most-shorted US REIT stock, with 205.7 million shares sold short, or 34.3% of shares outstanding, as of May 31.

Office REIT SL Green Realty Corp. was the second most-shorted US REIT stock at 21.5% of shares outstanding, followed by single tenant-focused NETSTREIT Corp. at 18.4% of shares outstanding.