News of Deerfield Capital's (DFR) writedowns and asset sales combined with Gramercy Capital's (GKK) penny miss on FFO estimates pushed shares of commercial-focused mREITs lower today. Particularly hard-hit were Quadra Realty Trust (QRR), dropping 10%, and NorthStar Realty Finance (NRF), which shed 9.7%. Also in the losing column, on sector weakness and the threat of significant Fitch downgrades, were Anthracite Capital (AHR) (-9.4%), Crystal River Capital (CRZ) (-8%), and JRT Investors Trust (-8.7%).
Look for commercial mREIT shares to remain under pressure through the end of January, until a potential Fed rate cut (January 30) and additional earnings news (February 4-7) shakes the sector out of its doldrums.
