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 industry, arsenic workers astir the satellite adapted to moving from location and assorted lockdown measures person been enacted. Despite the economy's rebound, the industry's betterment has been uneven. Some analysts foretell a speedy betterment to pre-pandemic levels.
REITs, arsenic represented by an exchange-traded money (ETF)—the Real Estate Select Sector SPDR Fund (XLRE)—have narrowly outperformed the broader market. XLRE’s 42.2% full instrumentality implicit the past 12 months exceeded the benchmark iShares Russell 1000 ETF (IWB), which has provided a full instrumentality of 36.5%. These marketplace show numbers and the statistic successful the tables beneath are arsenic of Oct. 27, 2021.
Here are the apical 3 REITs with the champion value, fastest growth, and 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) | 8.69 | 12.6 | 3.8 |
| AGNC Investment Corp. (AGNC) | 16.51 | 8.7 | 4.8 |
| SL Green Realty Corp. (SLG) | 73.07 | 4.9 | 7.6 |
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 middle-market lending.
- AGNC Investment Corp.: AGNC Investment invests chiefly successful residential MBS connected a leveraged ground done collateralized borrowings. It uses an progressive portfolio absorption strategy to supply risk-adjusted returns.
- SL Green Realty Corp.: SL Green Realty invests successful bureau properties successful the New York metropolitan area. On Oct. 21, the institution declared a monthly mean dividend of $0.30 per stock payable Nov. 15 to shareholders of grounds arsenic of Oct. 29, 2021.
Fastest Growing REITs
These are the apical REITs arsenic ranked by a growth model that scores companies based connected a 50/50 weighting of their astir caller quarterly year-over-year (YOY) percentage revenue growth and their astir caller quarterly YOY earnings-per-share (EPS) growth. Both income and net are captious factors successful the occurrence of a company. Therefore, ranking companies by lone 1 maturation metric makes a ranking susceptible to the accounting anomalies of that 4th (such arsenic changes successful taxation instrumentality oregon restructuring costs) that whitethorn marque 1 fig oregon the different unrepresentative of the concern successful general. Companies with quarterly EPS oregon gross maturation of much than 2,500% were excluded arsenic outliers.
| Price ($) | Market Cap ($B) | EPS Growth (%) | Revenue Growth (%) | |
| Weyerhaeuser Co. (WY) | 36.76 | 27.6 | 1,270 | 92.8 |
| Jones Lang LaSalle Inc. (JLL) | 263.43 | 13.4 | 1,220 | 22.5 |
| Sun Communities Inc. (SUI) | 197.94 | 23.0 | 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. On Oct. 29, 2021 the institution reported $0.64 successful EPS connected $2.3 cardinal successful revenue. These are up from $0.38 successful EPS connected $2.1 cardinal successful gross a twelvemonth earlier.
- 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. On Oct. 21, 2021 the institution announced the acquisition of Building Engines, a Boston-based spot absorption platform, for astir $300 million.
- Sun Communities Inc.: Sun Communities owns and operates manufactured-housing communities, recreational conveyance resorts, and marinas. The institution owns properties passim the Midwest and the Southeast regions of the United States, arsenic good arsenic Canada.
REITs with the Most Momentum
These are the REITs that had the highest full instrumentality implicit the past 12 months.
| Price ($) | Market Cap ($B) | 12-Month Trailing Total Return (%) | |
| Jones Lang LaSalle Inc. (JLL) | 263.43 | 13.4 | 138.5 |
| Simon Property Group Inc. (SPG) | 146.37 | 48.1 | 137.6 |
| CBRE Group Inc. (CBRE) | 104.59 | 35.1 | 129.5 |
| iShares Russell 1000 ETF (IWB) | N/A | N/A | 36.5 |
| Real Estate Select Sector SPDR Fund (XLRE) | N/A | N/A | 42.2 |
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 crossed North America, Europe, and Asia.
- 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, multifamily residences, and information centers. In September, the institution announced it was the top-ranked steadfast for commercialized existent property concern income globally in the archetypal fractional of 2021, according to Real Capital Analytics. CBRE Group had a 23.7% marketplace stock crossed each spot types connected a worldwide ground during that period, astir doubly arsenic large arsenic the 2 adjacent biggest rivals, according to RCA.
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