- Shares of New York-based VICI Properties have grown 18.14 percent this year.
- SL Green, which invests in office buildings, saw its share price rally 13 percent year to date.
Real estate investment trusts, or REITs, are companies that invest in property assets such as office buildings, shopping centers and other commercial properties. It makes money by renting, leasing or selling the properties.
The commercial real estate sector took a severe impact in 2020 from the coronavirus pandemic amid the work from home arrangement. Also, shopping malls and entertainment zones saw fewer people last year because of stay at home orders and social distancing norms.
Here, we explore the stocks of two REITs - VICI Properties Inc. (NYSE: VICI) and SL Green Realty Corp. (NYSE: SLG) - that are performing well on Wall Street and have reported strong earnings last year.
VICI Properties Inc. (VICI)
The New York-based real investment trust primarily focuses on gaming, hospitality and entertainment properties.
VICI’s stock remained almost flat in 2020. But the shares are up 18.14 percent year to date. VICI ended trading on April 20 at US$30.15.
In 52-weeks period, the shares hit a low of US$13.97 and it rallied to a high of US$30.43.
Refinitiv, VICI Properties share performance since January 2020.
In 2020, VICI’s total revenues grew 37 percent year over year to US$1.2 billion while adjusted fund from operations rose 28.7 percent year over year to US$835.5 million. Adjusted fund from operations per share was US$1.64, up 10.8 percent.
Net income attributable to common stockholders totaled US$891.7 million or US$1.75 per share, against US$546.0 million or US$1.24 per share in the year-ago period.
For full-year 2021, VICI has projected its adjusted funds from operations per share in the range of US$1.82 to US$1.87.
SL Green Realty is also a real estate investment trust based in New York but invests in office buildings and shopping centers.
The share price lost 36.5 percent in 2020. However, the stock rallied over 13 percent this year. SL Green closed at US$70.14 on April 20.
The company’s 52-week trading range is US$77.99 to US$36.21.
Source: Refinitiv, SL Green share price since January 2020.
In 2020, SL Green’s total revenue fell to US$1.05 billion from US$1.24 billion in 2019.
Funds from operations during the year came in at US$562.7 million, or US$7.11 per share, against US$605.7 million, or US$7 per share, in 2019.
However, net income attributable to common stockholders totaled US$356.1 million, or US$4.87 per share, up from US$255.5 million or US$3.19 per share in the previous year.
SL Green paid a special dividend of US$1.6967 per share to shareholders in January following asset disposals in 2020.
SL Green is forecasting its funds from operations per share during the full-year 2021 to be between US$6.30 and US$6.70.