S&P Capital IQ says rising interest rates will disrupt the real estate investment trust sector in 2017, but there will be winners and losers. Ken Leon, an equity analyst with CFRA, says industrial REITs are best positioned with strong secular growth, and he also likes mulitfamily and retail REITs. Winners among the better-performing REITs could be American Campus Communities (ACC) , Simon Property (SPG) , Prologis (PLD) and General Growth Properties (GGP) . He's less enthusiastic about real estate operating companies and hotel REITs, including CBRE (CBG) , LaSalle Hotel Properties (LHO) , Host Hotels & Resorts (HST) and Forest City Realty Trust (FCE.A) .
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The data center REIT has seen sellers of its shares become more aggressive in the last few weeks, so it may be best to avoid the stock for now.