Five REIT stocks to explore in June: FPI, APTS, NREF, WSR & ACC

Highlights

• NexPoint Real Estate Finance, Inc. (NYSE: NREF) has a dividend yield of 8.19%, with an annualized dividend of US$2.00. 
• Whitestone REIT's (NYSE: WSR) dividend yield is 4%, with an annualized dividend of US$0.48. 
• American Campus Communities Inc (ACC) dividend yield is 2.91%, and its annualized dividend is US$1.88. 

Some investors consider real estate investment trusts (REITs) a stable source of passive income. Besides dividends, they are also considered for their potential inflation-hedging benefits.

Here we discuss five REIT stocks that returned more than 15% gains in one year and YTD besides paying dividends to shareholders. 

Farmland Partners Inc. (NYSE: FPI) 

Closing price on May 20, 2022: US$14.16

Denver, Colorado-based Farmland Partners Inc owns farmland in the US. This internally managed real estate company contracts its properties. It has more than 100 tenants, growing over 26 commercial crops. It earns revenue from renting farmlands. 

For the first quarter ended March 31, 2022, it reported operating revenue of US$13.89 million compared to US$11.58 million in the same quarter the previous year.

Its net income attributable to the company came in at US$1.11 million compared to US$2.36 million in the March quarter of 2021. 

It has a market capitalization of US$716.46 million. It has a dividend yield of 1.41%, with an annualized dividend of US$0.24. Its P/E ratio is 61.57. 

The stock traded in the range of US$16.43 to US$10.62 in the last 52 weeks.

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Preferred Apartment Communities, Inc. (NYSE: APTS)

Closing price on May 20, 2022: US$24.91

Atlanta, Georgia-based Preferred Apartment Communities Inc is a real estate investment trust (REIT). It acquires and operates multifamily properties in the US.

Its operating segments are the Multifamily Communities, Financing, New Market Properties, and Preferred Office properties.

For the three months ended March 31, 2022, its revenue was US$104.9 million compared to US$115.7 million in the same quarter a year ago.

It booked a net loss attributable to the company of US$7.81 million or US$0.62 per share diluted compared to a net loss of US$2.65 million or US$0.73 per share diluted in the March quarter of 2021. 

The company has a market capitalization of US$1.61 billion. Its forward P/E for one year is 23.72. APTS has a dividend yield of 2.81%, with an annualized dividend of US$0.70. 

The stock traded in the range of US$25.80 to US$9.30 in the last 52 weeks.

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NexPoint Real Estate Finance, Inc. (NYSE: NREF)

Closing price on May 20, 2022: US$24.43

NexPoint Real Estate Finance Inc is headquartered in Dallas, Texas. It invests in mid-sized multifamily, extended-stay hospitality, storage, and select-service properties. It provides structured financial solutions to shareholders by investing in properties and generating a risk-adjusted return in the long term.

For the quarter ended March 31, 2022, its net interest income was US$23.16 million compared to US$6.15 million in the same period a year ago.

The net income attributable to common shareholders came in at US$12.9 million or US$0.81 per share diluted compared to US$8.37 million or US$1.26 per share diluted in the March quarter of the previous year. 

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On April 28, it announced a quarterly dividend of US$0.50 per common share payable on June 30, 2022, to stockholders of record on June 15, 2022.

It has a market capitalization of US$356.4 million. Its P/E ratio is 7.02, and the forward P/E for one year is 9.58. NREF has a dividend yield of 8.19%, with an annualized dividend of US$2.00. 

The stock traded in the range of US$25.98 to US$17.96 in one year.

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Whitestone REIT (NYSE: WSR)

Closing price on May 20, 2022: US$11.99

Whitestone REIT owns and operates commercial properties in metropolitan areas. It is headquartered in Houston, Texas. Its portfolio includes retail and office properties. 

The REIT posted revenue of US$34.12 million for the quarter ended March 31, 2022, compared to US$29.05 million in the previous year's quarter.

Its net income came in at US$7.19 million or US$0.14 per share diluted compared to US$1.44 million or US$0.03 per share diluted in the March quarter of 2021. The company expects its GAAP net income to be in the range of US$0.35 to US$0.39 per share diluted in 2022. 

It has a market capitalization of US$589.3 million. Its P/E ratio is 32.41, and the forward P/E for one year is 14.62. WSR has a dividend yield of 4%, with an annualized dividend of US$0.48. 

The stock traded in the range of US$13.66 to US$7.56 in the last 52 weeks.

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American Campus Communities Inc (ACC)

Closing price on May 20, 2022: US$64.56

Austin, Texas-based American Campus Communities Inc is engaged in acquiring, managing, and developing student housing properties in the vicinity of universities and colleges in the US.

Its portfolio comprises owned properties, on-campus participating properties, development services, and property management services. 

For the three months ended March 31, 2022, its revenue was US$273.75 million compared to US$232.7 million a year ago. The net income was US$42.72 million or US$0.27 per share diluted compared to US$15.99 million or US$0.11 per share diluted in the March quarter of 2021. 

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It has a market capitalization of US$9.00 billion. Its P/E ratio is 161.4, and the forward P/E for one year is 26.14. ACC has a dividend yield of 2.91%, with an annualized dividend of US$1.88. 

The stock traded in the range of US$65.02 to US$45.75 in the last 52 weeks.

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Bottom line:

REITs earn their revenues from renting and selling properties. If the interest rate increases, they may also increase their rents for housing, farming, storage services, etc. However, investors should exercise due diligence before investing in the stock market.