Real property concern trusts (REITs) are publically traded companies that let idiosyncratic investors to buy shares successful existent property portfolios that person income from a assortment of properties. They let investors to easy put successful the real estate sector, which includes companies that own, develop, and negociate residential, commercial, and concern properties. Among different requirements, REITs are required to wage retired astatine slightest 90% of their taxable income arsenic dividends. A cardinal REIT metric is funds from operations (FFO), a measurement of net peculiar to the industry. Some large names wrong the assemblage see American Tower Corp. (AMT), Crown Castle International Corp. (CCI), and Prologis Inc. (PLD). The COVID-19 pandemic has importantly disrupted the commercialized existent property manufacture arsenic workers astir the satellite person adapted to moving from location and assorted lockdown measures person been enacted. Still, immoderate analysts foretell that the manufacture volition retrieve quickly.
REITs, arsenic represented by the Real Estate Select Sector SPDR ETF (XLRE), person narrowly outperformed the broader market. XLRE's 35.1% full instrumentality implicit the past 12 months is conscionable supra the Russell 1000 index, which has provided a full instrumentality of 34.5%. These marketplace show numbers and the statistic successful the tables beneath are arsenic of Aug. 23, 2021.
Here are the apical 3 REITs with the champion value, the fastest growth, and the astir momentum.
Best Value REITs
These are the REITs with the lowest 12-month trailing price-to-earnings (P/E) ratio. Because profits tin beryllium returned to shareholders successful the signifier of dividends and buybacks, a debased P/E ratio shows you’re paying little for each dollar of nett generated.
| Price ($) | Market Cap ($B) | 12-Month Trailing P/E Ratio | |
| Annaly Capital Management Inc. (NLY) | 8.60 | 12.4 | 3.7 |
| AGNC Investment Corp. (AGNC) | 16.28 | 8.5 | 4.7 |
| New Residential Investment Corp. (NRZ) | 9.86 | 4.6 | 7.8 |
Source: YCharts
- Annaly Capital Management Inc.: Annaly Capital Management invests successful existent property and related assets, including bureau mortgage-backed securities (MBS), residential and commercialized existent estate, and mediate marketplace lending. On Aug. 11, the institution announced currency dividends of $0.434375, $0.40625, and $0.421875 of its Series F Preferred Stock, Series G Preferred Stock, and Series I Preferred Stock, respectively. All dividends are payable connected Sep. 30 to preferred shareholders of grounds arsenic of Sep. 1, 2021.
- AGNC Investment Corp.: AGNC Investment invests chiefly successful residential MBS connected a leveraged ground done collateralized borrowings. It uses an progressive portfolio absorption strategy successful bid to supply risk-adjusted returns. AGNC announced connected Aug. 12 that it would wage a currency dividend of $0.12 per stock of communal banal for August 2021. The dividend is payable connected Sept. 10 to shareholders of grounds arsenic of Aug. 31, 2021.
- New Residential Investment Corp.: New Residential Investment invests successful the residential lodging sector. The institution owns owe servicing-related assets, residential loans, and akin investments. It besides owns a owe originator and servicer.
Fastest Growing REITs
These are the apical REITs arsenic ranked by a growth model that scores companies based connected a 50/50 weighting of their astir caller quarterly year-over-year (YOY) percentage revenue growth and their astir caller quarterly YOY earnings-per-share (EPS) growth. Both income and net are captious factors successful the occurrence of a company. Therefore ranking companies by lone 1 maturation metric makes a ranking susceptible to the accounting anomalies of that 4th (such arsenic changes successful taxation instrumentality oregon restructuring costs) that whitethorn marque 1 oregon the different fig unrepresentative of the concern successful general. Companies with quarterly EPS oregon gross maturation of implicit 2,500% were excluded arsenic outliers.
| Price ($) | Market Cap ($B) | EPS Growth (%) | Revenue Growth (%) | |
| Weyerhaeuser Co. (WY) | 34.53 | 25.9 | 1,270 | 92.8 |
| Jones Lang LaSalle Inc. (JLL) | 239.58 | 12.2 | 1,220 | 22.5 |
| Sun Communities Inc. (SUI) | 196.40 | 22.8 | 60.7 | 100.0 |
Source: YCharts
- Weyerhaeuser Co.: Weyerhaeuser is simply a wood products institution that grows and harvests trees and develops existent estate. The institution besides provides operation services and wood products.
- Jones Lang LaSalle Inc.: Jones Lang LaSalle is simply a existent property and concern absorption work provider. The institution provides services specified arsenic tenant representation, spot management, leasing, finance, and valuation services to a assortment of firm and organization clients globally. Jones Lang LaSalle reported important gains crossed a assortment of net metrics for Q2 2021, including nett income and revenue, driven by maturation successful each of its businesses.
- Sun Communities Inc.: Sun Communities owns and operates manufactured lodging communities. The institution owns properties passim the Midwest and the Southeast regions of the U.S., arsenic good arsenic Canada.
REITs with the Most Momentum
These are the REITs that had the highest full instrumentality implicit the past 12 months.
| Price ($) | Market Cap ($B) | 12-Month Trailing Total Return (%) | |
| Jones Lang LaSalle Inc. (JLL) | 239.58 | 12.2 | 147.3 |
| Simon Property Group Inc. (SPG) | 129.46 | 42.5 | 112.1 |
| CBRE Group Inc. (CBRE) | 93.16 | 31.3 | 107.4 |
| Russell 1000 | N/A | N/A | 34.5 |
| Real Estate Select Sector SPDR ETF (XLRE) | N/A | N/A | 35.1 |
Source: YCharts
- Jones Lang LaSalle Inc.: See supra for institution description.
- Simon Property Group Inc.: Simon Property Group is simply a REIT that owns, develops, and manages malls, outlet centers, assemblage centers, and different related properties. For Q2 2021, Simon reported 142.8% YOY maturation successful nett income attributable to communal stockholders connected an 18.1% YOY summation successful revenue. The institution cited accrued shopper traffic, retail sales, and leasing enactment astatine its properties arsenic drivers of the performance.
- CBRE Group Inc.: CBRE Group is simply a existent property work provider. The institution offers valuation, advisory, existent property investment, and spot absorption services. It focuses connected offices, hotels, gaming properties, multi-family residences, and information centers. On July 29, the institution announced the promotion of main concern serviceman Emma Giamartino to planetary radical president, main fiscal officer, and main concern officer. Leah Stearns, CBRE's existent main fiscal officer, volition proceed with the institution successful an advisory capableness done the extremity of 2021.
The comments, opinions and analyses expressed herein are for informational purposes lone and should not beryllium considered idiosyncratic concern proposal oregon recommendations to put successful immoderate information oregon to follow immoderate concern strategy. While we judge the accusation provided herein is reliable, we bash not warrant its accuracy oregon completeness. The views and strategies described connected our contented whitethorn not beryllium suitable for each investors. Because marketplace and economical conditions are taxable to accelerated change, each comments, opinions, and analyses contained wrong our contented are rendered arsenic of the day of the posting and whitethorn alteration without notice. The worldly is not intended arsenic a implicit investigation of each worldly information regarding immoderate country, region, market, industry, investment, oregon strategy.
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