HST to VTR: Should you explore these 5 REITs as inflation shoots up?

Highlights:

• Sabra Health Care REIT, Inc’s (NASDAQ: SBRA) annualized dividend is US$1.20.
• EPR Properties (NYSE: EPR) annualized dividend is US$3.3, with a 6.57% yield.
• Ventas, Inc’s (NYSE: VTR) P/E ratio is 135.44, with an annualized dividend of US$1.80.

Real estate investment trusts or REITs are companies that invest in the real estate sector. Buying real estate shares allows people to invest in the industry with little money without spending on expensive properties for returns.

These companies must pay at least 90% of their taxable income to investors in the form of dividends. Due to this, REITs could be a reliable source of passive income.

Some well-known REITs include American Tower Corp. and Crown Castle International Corp. However, here we discuss five REITs that gave positive returns YTD besides dividends.

Host Hotels & Resorts, Inc. (NASDAQ: HST)

Closing price: US$19.91
Dividend yield: 0.57% 

Maryland-based Host Hotels & Resorts owns upscale urban hotel and resort properties, mainly in the US, comprising over 45,000 rooms. Its top brands include Marriott and Starwood.

HST earned revenue of US$1.07 billion for the quarter ended March 31, 2022, up 169% YoY, compared to US$0.399 billion in the previous year’s March quarter.

The net income came in at US$118 million or US$0.16 per share diluted, compared to a net loss of US$153 million or US$0.22 per share diluted in the March quarter of 2021.

The stock has a market capitalization of US$13.52 billion and a P/E ratio of 54.04. Its forward P/E for one year is 12.21, and the annualized dividend is US$0.24.

HST traded between US$21.63 and US$14.67 in the last 52 weeks.  

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American Campus Communities Inc (NYSE: ACC)

Closing price: US$64.77
Dividend yield: Nil 

American Campus Communities Inc acquires, manages, and develops student housing properties near US universities and colleges. Its segments are On-campus properties, Owned properties, Development Services, and Property management services. 

For the March quarter of 2022, the company generated revenue of US$273.7 million compared to US$232.7 million in the same quarter a year ago. The revenue growth was driven by improvement in operations compared to the Covid-affected period in the prior academic year.

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The net income attributable to the company came in at US$39.2 million or US$0.27 per diluted share compared to US$15.6 million or US$0.11 per diluted share for the same quarter in 2021.

The stock has a market capitalization of US$9.04 billion and a P/E ratio of 162. Its forward P/E for one year is 26.22. The ACC stock traded between US$65.22 and US$46.72 in one year.

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Sabra Health Care REIT, Inc. (NASDAQ: SBRA)

Closing price: US$14.01
Dividend yield: 8.61% 

Sabra is a healthcare real estate investment trust based in Irvin, California. It owns and invests in healthcare real estate, including nursing and mental health facilities and assisted living centers. 

For the quarter ended March 31, 2022, its revenue totaled US$163.1 million compared to US$152.4 million in the previous year.

The net income was US$40.6 million or US$0.18 per share diluted compared to US$33.45 million or US$0.16 per share diluted in the March quarter of the previous year. 

During Q1, 2022, it acquired a senior housing complex for US$26.0 million.

The stock has a market capitalization of US$3.23 billion. Its forward P/E ratio for one year is 9.34, and the annualized dividend is US$1.20.

SBRA traded between US$19.02 and US$11.44 in the last 52 weeks.

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EPR Properties (NYSE: EPR)

Closing price: US$49.22
Dividend yield: 6.57% 

EPR Properties is based in Kansas, Missouri and leases experiential properties in the US and Canada. It invests in experiential and educational properties, including family entertainment centers, theaters, ski resorts, early childhood education centers and private school properties. 

EPR reported revenue of US$157.47 million for the March quarter of 2022 compared to US$111.77 million in the same quarter in the previous year.

It posted a net income of US$42.19 million or US$0.48 per share diluted compared to US$3.38 million or US$0.04 per share diluted in the March quarter of 2021.

The stock has a market capitalization of US$3.62 billion and a P/E ratio of 31.96. Its forward P/E for one year is 11.21, and the annualized dividend is US$3.30.

EPR traded between US$56.38 to US$41.14 in one year.

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Ventas, Inc. (NYSE: VTR)

Closing price: US$53.32
Dividend yield: 3.29%

Chicago, Illinois-based Ventas owns a diversified healthcare portfolio. Its more than 1,200 properties include medical offices, senior housing, hospital, life science, and post-acute care. 

For the three months ended March 31, 2022, its revenue totaled US$1.02 billion compared to US$0.910 billion in the prior year.

The net income attributable to common shareholders came in at US$38.73 million or US$0.10 per diluted share compared to a net loss of US$57.21 million or US$0.15 per diluted share in the previous year.

The stock has a market capitalization of US$21.11 billion and a P/E ratio of 135.44. Its forward P/E for one year is 17.60, and the annualized dividend is US$1.80.

It traded between US$64.02 and US$45.44 in the last 52 weeks.

Bottom line:

The current high mortgage rates have slowed down the pace of the housing market. However, demand for new homes still remains high and far exceeds the current inventory.