AUS
NZ
UK
CA
USA
IND
Highlights
- AvalonBay Communities (NYSE:AVB) owns a portfolio of 275 apartment communities and additional 18 properties under development. Its dividend yield is 2.87%. The stock rose 40.7% YTD.
- Equity Residential’s (NYSE:EQR) portfolio includes 303 apartment communities. Its dividend yield is 3.01%. The stock price increased by 38.8% YTD.
- Prologis, Inc. (NYSE:PLD) has 900 million square feet of industrial and logistics facilities in 19 countries. The stock gave a 28% return YTD, with a P/E ratio of 60.75.
Real estate investment trusts (REITs) are public companies that generate income from owning, operating, and financing real estate projects. REITs provide investors with an opportunity to earn dividends from their investments without engaging in property transaction themselves.
Like mutual funds, investors earn on investments, which might be invested in different properties or projects. Here we discuss five REITs whose YTD stock price return is in two digits.
Also Read: Mastercard (MA) launches buy now, pay later (BNPL) scheme
AvalonBay Communities, Inc. (NYSE:AVB)
AvalonBay owns a portfolio of 275 apartment communities with more than 75,000 units. And 18 other properties are under development, which will add 5,000 more housing units.
AVB's owns properties in New York, New Jersey, California, New England, Washington D.C., and the Pacific Northwest.
The Arlington, Virginia-based AVB has a market capitalization of US$31.5 billion and a P/E ratio of 29.23. AVB REIT’s dividend yield is 2.87%, and its annualized dividend is US$6.36.
For the three months ended June 30, 2021, AVB earned revenue of US$561.7 million compared to US$576.4 million in the same period a year ago. The net income was US$448 million compared to US$170.9 million for the June quarter of 2020. The stock closed at US$222.15 on Sep 28. It rose 40.7% YTD.
Also Read: Five clean energy stocks to watch as renewables take centerstage
Also Read: Explore seven healthcare stocks that are under US$50
Equity Residential (NYSE:EQR)
The Chicago, Illinois-based Equity Residential’s portfolio includes 303 apartment communities with 78,000 units, and three other properties with 825 units are under development.
These properties are in Southern California, Washington, DC, New York, Seattle, Boston, and San Francisco. It has a market cap of US$30.7 billion. EQR has a P/E ratio of 42.92, a forward P/E for one year of 27.62, while the yearly dividend is US$2.41, and the dividend yield is 3.01%.
For the quarter ended June 30, 2021, the company earned revenue of US$598 million compared to US$653.5 million for the same quarter of the previous year. The net income was US$328 million compared to US$271.5 million for the June quarter of 2020.
Also Read: Are you saving enough? Here’s how to build a retirement fund
Funds from operation (FFO) available to common shares and units was US$302 million compared to US$330 million in the previous year’s June quarter.
The stock closed at US$80.37 on Sep 28, 2021. The stock price increased by 38.8% YTD.
Also Read: Ford (F), Toyota (TM) stocks in focus after positive business update
Welltower Inc. (NYSE:WELL)
Welltower Inc's portfolio includes more than 100 properties in Canada and the UK. In addition, the company owns around 1600 in-place healthcare properties in medical offices, senior housing complexes, professional nursing housing societies, etc. The S&P Global Ratings has revised the outlook for the company from negative to stable, with a credit rating of 'BBB+'.
The company is headquartered in Toledo, Ohio and has a market capitalization of US$35.47 million. Its P/E ratio is 60.39, the forward P/E for one year is 25.81, the annualized dividend is US$2.44, and the dividend yield is 2.95%.
Also Read: Amplitude (AMPL), DatChat (DATS) stocks trend as markets rebound
For the quarter ended June 30, 2021, the net income for common shareholders was US$26.26 million, and revenue was US$1.14 billion. The net income and revenue were US$179.2 million and US$1.19 billion, respectively, for the June quarter of 2020.
Its funds from operations for the June quarter of 2021 was US$248.8 million compared to US$287.1 million for the quarter ended March 2021.
The stock price was US$83.1 at the closing of Sep 28 trading. The gain is 31.8% YTD.
Also Read: Cintas (CTAS), Jabil (JBL) stocks in focus after higher quarterly revenue
Prologis, Inc. (NYSE:PLD)
Prologis Inc. acquires, develops, and operates over 900 million square feet of industrial and logistics facilities in 19 countries. The REIT is organized in four divisions geographically as Americas, Europe, Asia, and other Americas.
The company headquarter is situated in San Francisco, California. It has a market capitalization of US$93.4 million and a P/E ratio of 60.75, with a forward P/E ratio for one year of 30.86.
Its current dividend yield is 2%, and the annualized dividend is US$2.52.
PLD posted total revenue of US$1.15 billion for the three months ended June 30, 2021, compared to US$1.27 billion for the comparable quarter of 2020. The net earnings to common shareholders were US$598.6 million compared to US$404.5 million for the June quarter of 2020.
The company’s core fund from operation (FFO) attributable to common stockholders / unitholders was US$1.52 billion for the six months ended June 30, 2021.
The stock was priced at US$125.58 on Sep 28 closing. Its YTD return is 28%.
Also Read: Dalian iron ore climbs up on power curbs
Source – pixabay
Also Read: The Crypto Heist: Who is the Professor in the Crypto World?
American Tower Corporation (REIT) (NYSE:AMT)
The Boston, Massachusetts-based American Tower Corporation owns and operates properties across the world. It owns over 180,000 cell towers and gives them on lease to wireless service providers.
Its market capitalization is US$122.9 billion. The company has a P/E ratio of 54.45, a forward P/E for one year of 28.90, an annualized dividend of US$5.24 and a dividend yield of 1.91%.
The company reported revenue of US$2.30 billion for the quarter ended June 30, 2021, compared to US$1.91 billion for the same quarter in the previous year.
The net income attributable to common shareholders was US$746.3 million compared to US$446.1 million for the corresponding quarter of 2020.
Its adjusted fund from operation (AFFO) attributable to common shareholders was US$1.08 billion for the June quarter of 2021 compared to US$897.8 million in the previous year’s June quarter.
The stock closed at US$268.75 on Sep 28, 2021. AMT stock rose 21.5% YTD.
Also Read: Amplitude (AMPL), DatChat (DATS) stocks trend as markets rebound
Bottomline
Due to the current home supply shortage in the US, house and real estate prices have increased in recent months. But it has also slowed down the housing market. Besides, mortgage rates are rising even as the Federal Reserve moves to reduce monthly bond purchases, tentatively from November. As a result, the number of home loan applications has been falling.
Despite these troubles, the activities of the REITs are in full throttle, with the hope the markets would recover after the short-term challenges disappear. Thus, investors must apply due diligence before investing in stocks.
