PLD to SPG: Can these 5 REIT stocks provide hedge against inflation?

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PLD to SPG: Can these 5 REIT stocks provide hedge against inflation?

PLD to SPG: Can these 5 REIT stocks provide hedge against inflation?
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Highlights:

  • Prologis, Inc. (NYSE: PLD) expects its net earnings per diluted share to be between US$4.85 and US$5.00 in fiscal 2022.
  • American Tower Corporation (NYSE: AMT) total revenue increased by 23.2% YoY in Q1, FY22.
  • Simon Property Group, Inc. (NYSE: SPG) will report its first-quarter fiscal 2022 financial results on May 9.

Real estate investment trusts (REITs) are publicly traded firms that provide exposure to different real estate businesses, including residential, commercial, or industrial properties, etc.

REITs generally provide higher dividends than most other companies. The REIT companies pay 90% of the taxable income to shareholders.

The following are the top REIT stocks worth exploring amid the high inflationary pressures.

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Prologis, Inc. (NYSE: PLD)

Prologis is a leading real estate investment trust (REIT) based in San Francisco, California. It focuses on logistic real estate business.

The shares of the company traded at US$152.13 at 1:41 pm ET on May 2, down 5.09% from their closing price of April 29. Its stock value decreased by 2.8% YTD.

The firm has a market cap of US$113.00 billion, a P/E ratio of 30.59, and a forward one-year P/E ratio of 31.18. Its current yield is 1.97%, and its annualized dividend is US$3.16.

The 52-week highest and lowest stock prices were US$174.54 and US$112.00, respectively. Its trading volume was 9,997,287 on April 29.

The company reported revenue of US$1.21 billion in Q1, FY22, as compared to US$1.14 billion in the year-ago quarter. its net earnings attributable to common shareholders came in at US$1.14 billion, or US$1.54 per diluted share, as compared to US$366 million, or US$0.49 per diluted share in Q1, FY21.

Meanwhile, Prologis has raised its fiscal 2022 guidance range for its net earnings per diluted share to US$4.85-US$5.00, from its previous forecast of US$4.40-US$4.55.

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PLD to SPG: Can these 5 REIT stocks provide hedge against inflation?Source: ©2022 Kalkine Media®

American Tower Corporation (NYSE: AMT)

American Tower Corporation is engaged in wireless and broadcast communications infrastructure. It is based in Boston, Massachusetts.

The stock of the company traded at US$235.37 at 1:59 pm ET on May 2, down 2.34% from its previous closing price. The AMT stock fell 15.84% YTD.

The market cap of the company is US$107.90 billion, the P/E ratio is 40.92, and the forward one-year P/E ratio is 24.64. Its current yield is 2.32%, and its annualized dividend is US$5.60.

The stock saw the highest price of US$303.72 and the lowest price of US$220.00 in the last 52 weeks. Its share volume on April 29 was 2,151,909.

The company's total revenue increased by 23.2% YoY to US$2.66 billion in Q1, FY22, while its net income surged 7.7% to US$703 million.

Meanwhile, it now expects its net income to be between US$2.02 billion and US$2.13 billion in fiscal 2022.

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Crown Castle International Corp. (NYSE: CCI)

Crown Castle is a real estate investment trust (REIT) that owns, operates, and leases cell towers and fiber route miles to support communication services in the US. It is based in Houston, Texas.

The shares of the company traded at US$179.356 at 2:04 pm ET on May 2, down by 3.16% from their closing price of April 29. Its stock value declined 10.85% YTD.

The firm has a market cap of US$78.08 billion, a P/E ratio of 53.67, and a forward one-year P/E ratio of 26.23. Its current yield is 3.17%, and its annualized dividend is US$5.88.

The 52-week highest and lowest stock prices were US$209.87 and US$157.16, respectively. Its trading volume was 1,827,689 on April 29.

The company has reported a revenue of US$1.74 billion in Q1, FY22, compared to US$1.48 billion in the same quarter of the previous year. Its net income came in at US$421 million, or US$0.97 per diluted share, compared to US$58 million, or US$0.28 per diluted share in Q1, FY21.

It has raised its income from continuing operations outlook for fiscal 2022 to US$1.71 billion from its previous forecast of US$1.67 billion.

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Welltower Inc. (NYSE: WELL)

Welltower is a real estate investment trust focused on healthcare infrastructure. It is based in Toledo, Ohio.

The stock of the company traded at US$88.97 at 2:13 pm ET on May 2, down by 2.03% from its previous closing price. The WELL stock rose 6.14% YTD.

The market cap of the company is US$40.55 billion, the P/E ratio is 114.53, and the forward one-year P/E ratio is 25.58. Its current yield is 2.69%, and its annualized dividend is US$2.44.

The stock saw the highest price of US$99.43 and the lowest price of US$70.74 in the last 52 weeks. Its share volume on April 29 was 2,480,340.

The company will report its first-quarter fiscal 2022 financial results on May 10, after the closing bell.

Meanwhile, in Q4, FY21, it reported revenue of US$1.30 billion, while its net income came in at US$66.19 million, or US$0.13 per diluted share.

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REIT stocks: PLD, AMT, CCI, WELL, SPG

Simon Property Group, Inc. (NYSE: SPG)

Simon Property is a self-administered and self-managed real estate investment trust that owns, develops, and operates shopping malls, outlet centers, community centers, and entertainment avenues. It is based in Indianapolis, Indiana.

The shares of the company traded at US$113.70 at 2:17 pm ET on May 2, down 3.64% from their closing price of April 29. Its stock value slipped 26.39% YTD.

The firm has a market cap of US$37.59 billion, a P/E ratio of 16.74, and a forward one-year P/E ratio of 10.06. Its current yield is 5.59%, and its annualized dividend is US$6.60.

The 52-week highest and lowest stock prices were US$171.12 and US$114.72, respectively. Its trading volume was 3,160,463 on April 29.

The company will report its first-quarter fiscal 2022 financial results on May 9, after the market close.

In Q4, FY21, the company's total revenue was US$1.32 billion, while its net income attributable to common shareholders came in at US$503.24 million.

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Bottom line:

The S&P 500 real estate sector declined 10.28% YTD while increasing 9.11% over the past 12 months. Investors should exercise due diligence before investing in the stock market.

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