The Stockland Corporation Ltd (ASX: SGP) share price lifted 3.2% higher on Thursday to close at $4.86 per share before paring back some of those gains to close out the week at $4.79. Thursday’s closing price helped the Aussie real estate investment trust (REIT) close at a new 52-week high in good news for shareholders.
Let’s take a look at what’s been happening for one of the biggest REITs in the S&P/ASX 200 Index (ASX: XJO).
The week that was for the Stockland share price
Thursday was a good day for Stockland and many of the other Aussie REITs. Shares in Mirvac Group (ASX: MGR) and Goodman Group (ASX: GMG) climbed 1.7% and 2.3%, respectively. But all eyes were on the Stockland share price as it jumped 3.2% to close at a new 52-week high.
Property and tech helped the benchmark Aussie index close above 7,300 points on Thursday. Stockland was chief amongst the market leaders as investors picked their favourites ahead of the release of US inflation data on Thursday night.
Those broader market gains continued on Friday, but the same can’t be said for the Stockland share price. Shares in the Aussie REIT have retreated today, closing down 1.44%, but are still up 3.68% in the last month.
US inflation spikes
As we now know, US inflation numbers have climbed to the highest rate since 2008 in the latest data release. According to the US Bureau of Labor Statistics, headline inflation climbed to an annual rate of 5% in May, up from 4.2% in April and at the highest level since the GFC.
Anticipation of those numbers was one big factor driving markets on Thursday, but there was also some movement in bond markets, which could be having a broader impact.
Bond yields edged lower on Thursday as the tug-of-war between central banks and fixed income investors continues. Lower yields are less attractive to investors from a return perspective which can help other potential strong dividend shares such as REITs.
A fall in yields could also indicate borrowing prices will remain at their record lows for a little longer, which is good news for leveraged companies like the REITs.
The Stockland share price has been a beneficiary of bullish investors in the last week or so. That means the Aussie REIT has closed out the week in the green, despite a soft day of trade today.