AMT to PSA: 5 top REIT stocks to explore amid stagflation fear

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 AMT to PSA: 5 top REIT stocks to explore amid stagflation fear

Highlights:

  • American Tower Corporation (NYSE: AMT) revenue jumped more than 23% in Q1, FY22.
  • Prologis, Inc. (NYSE: PLD) will report its second-quarter fiscal 2022 results on July 18.
  • Public Storage (NYSE: PSA) revenue soared 15% in the quarter ended March 31, 2022.

The Federal Reserve’s aggressive interest rate drive to curb inflation has raised concerns about looming stagflation. The US last witnessed a period of stagflation during the 1970s, and real estate was among the few sectors that stood their ground in a tumultuous market.

While purchasing properties could be both difficult and expensive during stagflation, investors could find a way around the situation by boosting REIT holdings in their real estate portfolio. Though REITs are varied, many of them pay handsome dividends. Hence, REIT stocks are considered haven assets during downturns. Furthermore, Real estate prices generally move in tandem with inflation. Here we discuss some of the top REIT stocks to explore in Q3.

American Tower Corporation (NYSE: AMT)

American Tower Corporation owns and operates various wireless and broadcast communication infrastructures. It is based in Boston, Massachusetts.

The shares of the company closed at US$258.40 on July 1, up 1.1% from their closing price of June 30. Its stock value decreased by 9.77% YTD.

The firm has a market cap of US$120.07 billion, a P/E ratio of 44.71, and a forward one-year P/E ratio of 27.14. Its current yield is 2.21%, and its annualized dividend is US$5.72.

The 52-week highest and lowest stock prices were US$303.72 and US$220.00, respectively. Its trading volume was 1,363,377 on July 1.

The company's revenue soared 23.2% YoY to US$2.66 billion in Q1, FY22. Its net income attributable to common shareholders was US$711.7 million, or US$1.56 per diluted share, compared to US$645 million, or US$1.45 per diluted share, in Q1, FY21.

Top REIT stocks to explore in Q3Source: ©2022 Kalkine Media®

Prologis, Inc. (NYSE: PLD)

Prologis is a REIT firm engaged in the logistics real estate business focusing on high-growth markets. The company is based in San Francisco, California.

The stock closed at US$120.03 on July 1, up 2.02% from its previous closing price. The PLD stock fell 27.21% YTD. Its market cap is US$88.86 billion, the P/E ratio is 24.05, and the forward one-year P/E ratio is 23.26. Its current yield is 2.63%, and its annualized dividend is US$3.16.

The stock touched the highest price of US$174.54 and the lowest price of US$106.46 in the last 52 weeks. Its share volume on July 1 was 2,672,744.

The company will report its second-quarter fiscal 2022 results on July 18.

Meanwhile, in the first quarter of fiscal 2022, its total revenue was US$1.21 billion, compared to US$1.14 billion in the year-ago quarter. Its net earnings attributable to common shareholders were US$1.14 billion, or US$1.54 per share, versus US$366 million, or US$0.49 per share, in Q1, FY21

Realty Income Corporation (NYSE: O)

Realty Income is a REIT firm focusing on free-standing commercial properties in the US. It is based in San Diego, California.

Its shares closed at US$70.15 on July 1, up 2.77% from their closing price of June 30. Its stock value declined 1.47% YTD.

The firm has a market cap of US$42.20 billion, a P/E ratio of 68.77, and a forward one-year P/E ratio of 17.90. Its current yield is 4.23%, and its annualized dividend is US$2.97.

The 52-week highest and lowest stock prices were US$75.40 and US$62.28, respectively. Its trading volume was 2,950,229 on July 1.

The company reported total revenue of US$807.3 million for the three months ended on March 31, 2022, compared to US$442.3 million in the same period of the previous year. Its net income was US$199.4 million, against an income of US$95.9 million for the three months ended March 31, 2021.

Public Storage (NYSE: PSA)

Public Storage is a REIT firm focusing on self-storage facilities. The firm is based in Glendale, California.

The stock closed at US$317.37 on July 1, up 1.5% from its previous closing price. The PSA stock tumbled 13.12% YTD. Its market cap is US$55.86 billion, the P/E ratio is 30.84, and the forward one-year P/E ratio is 20.45. Its current yield is 2.52%, and its annualized dividend is US$8.00.

The stock touched the highest price of US$421.76 and the lowest price of US$292.32 in the last 52 weeks. Its share volume on July 1 was 489,210.

The company's revenue jumped 15.8% YoY to US$749.27 million for the three months ended March 31, 2022, while its net operating income rose 20.5% YoY to US$561.34 million.

Top REIT stocks: AMT, PLD, O, PSA, WELL

Welltower Inc. (NYSE: WELL)

Welltower Inc. is a REIT firm based in Toledo, Ohio. The company primarily invests in the healthcare infrastructure sector.

Its shares closed at US$83.21 on July 1, up 1.04% from their previous close. The stock fell 2.75% YTD. Welltower has a market cap of US$37.77 billion, a P/E ratio of 110.95, and a forward one-year P/E ratio of 23.64. Its current yield is 2.93%, and its annualized dividend is US$2.44.

The 52-week highest and lowest stock prices were US$99.43 and US$76.56, respectively. Its trading volume was 1,724,947 on July 1.

The company's total revenue was US$1.39 billion in Q1, FY22, compared to US$1.05 billion in the same quarter of the previous year. Its net income was US$65.75 million, against an income of US$72.19 million in Q1, FY21.

Meanwhile, the company has raised its diluted EPS guidance range to between US$0.22 and US$0.25 apiece in Q2, FY22, from its previous guidance of US$0.20 to US$0.25 per share.

Bottom line:

The covid-19 pandemic has disrupted all the economic sectors, including real estate. The S&P 500 real estate sector dropped 19.78% YTD while decreasing 6.38% over the past 12 months. On the other hand, the overall S&P 500 index slumped 19.74% YTD.

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