EPRT - Realty Income Spirit Realty downgraded by Mizuho on rate sensitivity

Spirit Realty (SR) slips 0.9% and Realty Income (O) falls 0.5% after Mizuho Securities USA analyst Haendel St. Juste downgrades the two triple net REITs to Neutral from Buy as he becomes less constructive on the sector overall.St. Juste is bullish on the economic recovery with vaccine production and distribution ahead of schedule and transactions rebounding."The economic resurgence, in part, has led to a 55bp rise in the 10-Year yield YTD, unnerving some and raising questions of whether REITs/Triple Nets can work in a rising rate environment," the analyst writes.Notes that REITs, as illustrated by the RMZ index, are moving higher since the vaccine news and have slightly outperformed the S&P YTD and historically they outperform during multi-year periods of higher rates.However, St. Juste isn't convinced that triple nets will fare as well, given their higher sensitivity to rates. Thus, he moves to Equalweight on triple net sector from Overweight."As such, we

For further details see:

Realty Income, Spirit Realty downgraded by Mizuho on rate sensitivity