While the general performance of real estate investment trusts over the last year has been unexciting, a few REITs have managed to outperform the rest. This sector is interest rate sensitive and if you examine the ETF chart and then that of the Treasury Bond ETF, you can see how similarly they behave.
The iShares Realty Trust ETF daily price chart looks like this:
See how the high showed up in late December 2023 and how the low came in mid-April 2024.
And here’s the daily price chart for the iShares 20-year Treasury Bond ETF:
The high for bonds arrived in late December 2023 and the low hit in late April 2024, just like the real estate investment trusts ETF. Of course, other factors are present depending on the type of real estate properties involved, but expectations about interest rates is a big consideration for investors.
Whatever the case, a few REITs have done better than the sector as a whole…
4 REITs That Outperformed.
Iron Mountain (NYSE: IRM) provides “asset lifecycle management, data centers and warehousing and logistics.” Market capitalization is $26.27 billion. The stock trades with a price-earnings ratio of 136. The debt-to-equity ratio is 837. Earnings this year are up by 1.46% and down over the past 5 years by 12.68%. The company pays a dividend of 2.90%.
Independence Realty Trust (NYSE: IRT) specializes in multi-family real estate across the country, mainly in the Southeast but also with properties in Colorado, Texas and Indiana. The market cap is $4.22 billion. The stock trades at 1.23 times book value. This year’s earnings are up by 457%. There is not yet a 5-year EPS record. Independence Realty pays a 4.27% dividend.
Omega Healthcare (NYSE: OHI) is a healthcare properties real estate investment trust with a focus on skilled nursing and assisted living facilities. The company specializes in net-lease financing structures. Earnings this year are up by 56% and down over the past 5 years by 6.35%. The price-earnings ratio is 31. Debt-to-equity is 1.43. Omega offers investors a 7.82% dividend.
Urban Edge Properties (NYSE: UE) is a retail REIT which specializes in shopping centers in the corridor between Boston and Washington, D. C. The company leases, redevelops and manages properties in 75 locations. This year’s earnings are down by 98%. The EPS growth over the past 5 years is up by 18.09%. The price-to-earnings ratio is 8. Debt-to-equity is 1.66. Urban Edge pays a dividend of 3.57%.
Stats courtesy of FinViz.com. Charts courtesy of Stockcharts.com.
More price chart analysis and commentary at johnnavin.substack.com.
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