A modest rise in average short interest was recorded across U.S. equity real estate investment trusts during the last month of 2022, increasing 16 basis points to 3.2% of shares outstanding, according to S&P Global Market Intelligence data.

Advertising segment sees largest gain

The advertising sector gained the most short interest on average in December 2022, posting a 1.1 percentage point hike from the previous month to 4.7% of shares outstanding.

OUTFRONT Media Inc. logged the biggest hike in short interest in the sector, with a 1.9 percentage point increase in short interest relative to shares outstanding to 6.9% as of Dec. 30, 2022, the seventh-largest gain across all U.S. REITs. Lamar Advertising Co. booked an increase in short interest over the same period, up 26 basis points to 2.5% of shares outstanding.

Next to the advertising sector, communications REITs' average short interest was up 69 basis points to 2.5% of shares outstanding. The healthcare segment saw the third-biggest hike, increasing 55 basis points to 4.1% of shares outstanding.

* Set email alerts for future Data Dispatch articles. * Download data featured in this story in Excel format. * Read some of the day's top real estate news and insights from S&P Global Market Intelligence.

By contrast, the regional mall segment saw a drop of 21 basis points in average short interest to 3.8% of shares outstanding as of Dec. 30, 2022, the biggest decline across all property types. The residential sector followed with a drop of 13 basis points to 2.3% of outstanding shares.

Top REITs by change in short interest

Healthcare-focused Medical Properties Trust Inc. saw a 4.3 percentage point hike to 17.4% of its outstanding shares, the highest increase in short interest by December-end. Communications REIT Uniti Group Inc. followed, with its short interest up 2.8 percentage points to 7.2% of shares outstanding.

Meanwhile, diversified REIT Broadstone Net Lease Inc. saw the biggest drop in short interest relative to shares outstanding, down 6.7 percentage points to 2.1% of its shares outstanding.

REITs with largest short positions

Medical Properties Trust was the most shorted U.S. REIT stock, with 104.1 million shares sold short as of December-end. Office REITs SL Green Realty Corp. and Vornado Realty Trust followed, with short interests at 11.9% and 11.6% of shares outstanding, respectively.