Average short interest across US equity real estate investment trusts ticked down in November, slipping seven basis points from the previous month to 3.6% of shares outstanding, according to S&P Global Market Intelligence data.
Casino sector logs largest short-interest drop
The casino segment had the biggest decline in average short interest across all property types with a 71-basis-point drop from the previous month to 1.4% of shares outstanding as of Nov. 30.
The fall was largely attributed to the significant decline in Gaming & Leisure Properties Inc.'s short interest, which dropped 1.2 percentage points to 1.7% of the casino REIT's shares outstanding, the ninth-largest decline among all US REITs in November.
Casino landlord VICI Properties Inc. also reported a decrease in short interest, down about 25 basis point to 1.1% of its shares outstanding at month-end.
The second-biggest decline was recorded in the office REIT segment, which fell 61 basis points to 6% of shares outstanding.
The shopping center segment logged the third-biggest drop, down 18 basis points to 2.6% of shares outstanding.
By contrast, the advertising sector had the largest gain in average short interest across all property types, up 69 basis points over the preceding month to 3.8% of shares outstanding as of November-end.
Advertising REIT OUTFRONT Media Inc. registered the biggest hike in short interest in the sector and was the 10th-largest gainer across the entire REIT industry, posting an increase of 91 basis points to 4.7% of its outstanding shares. Lamar Advertising Co. also reported a 47-basis-point increase during the month to 2.9% of its shares outstanding.
The farmland sector posted the next-biggest increase with a 33-basis-point hike in average short interest to 4.2% of shares outstanding as of Nov. 30.
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REITs with largest change in short interest
Healthcare-focused Sabra Health Care REIT Inc. logged the largest increase in short interest in November with a 1.8-percentage-point hike to 6.8% of its shares outstanding. Short interest for hotel landlord Park Hotels & Resorts Inc. and multifamily REIT Aimco increased by roughly 1.4 percentage points each during the month.
On the other side of the spectrum, office landlord Douglas Emmett Inc. had the largest decline in short interest, down 4.3 percentage points to 11.3% of its outstanding shares.
REITs with largest short positions
Office-focused SL Green Realty Corp. was the most-shorted US REIT stock, with 16.1 million shares sold short as of Nov. 30, or 25.1% of its shares outstanding.
Healthcare REIT Medical Properties Trust Inc. was the second most-shorted REIT stock at 22.6% of its shares outstanding, followed by office REIT Hudson Pacific Properties Inc. and hotel landlord Pebblebrook Hotel Trust, with short interests of 16.1% and 15.9%, respectively.
