Average short interest across US equity real estate investment trusts had a modest increase in September, rising 28 basis points from the previous month to 3.9% of shares outstanding, according to S&P Global Market Intelligence data.
Wheeler REIT boosts shopping center sector's average short interest
The shopping center segment had the largest gain in average short interest across all property types, with a 1.6-percentage-point increase from the prior month to 4.2% of shares outstanding as of Sept. 29.
The hike was largely attributed to the jump in Wheeler REIT Inc.'s short interest. It rose by 19.6 percentage points to 23.2% of the shopping center REIT's shares outstanding as of September-end. This recent increase was the biggest gain in short interest across all US REITs during the month and landed the company in the 2nd spot among the list of most-shorted REIT stocks by month-end.
Within the same sector, RPT Realty and Acadia Realty Trust also posted significant increases in short interest during month-end at 1.8 percentage points and 1.0 percentage point, respectively.
The casino sector had the second-biggest increase, posting a 96-basis-point hike in average short interest to 2.8% of shares outstanding as of Sept. 29. The "other retail" segment, which includes outlet centers and single tenant REITs, notched the third-highest gain with a 72-basis-point increase to 3.6% of shares outstanding.
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On the other side of the spectrum, the healthcare segment had the largest decline in average short interest across all property types, declining 21 basis points over the preceding month to 4.3% of shares outstanding as of September-end. Healthcare REIT CareTrust REIT Inc. had the largest decline in short interest within the healthcare sector and across the entire REIT industry, posting a plunge of 3.6 percentage points to 7.9% of its outstanding shares.
The datacenter sector saw the next-biggest drop with a 10-basis-point decline in average short interest to 3.4% of shares outstanding as of Sept. 29.
REITs with largest short positions
Office-focused SL Green Realty Corp. remains the most-shorted US REIT stock, with 17.5 million shares sold short as of Sept. 29, or 27.2% of its shares outstanding. Wheeler REIT Inc. was the 2nd most-shorted REIT stock at 23.2% of its shares outstanding, followed by healthcare REIT Medical Properties Trust Inc. and hotel landlord Pebblebrook Hotel Trust, with short interests of 20.9% and 16.8%, respectively.
