Will These Five Real Estate Stocks Shine Amid Rising Home Demand?

Summary

  • Park Hotels' market cap is around US$4.974 billion.
  • Brixmor's net income was US$52.4 million in Q1.
  • Home prices soared to a 15-year high of 13.2% in March.

The US real estate market is currently witnessing a massive shortage of homes for sale as demand climbed to record levels. Home prices rose to a 15-year high of 13.2% in March as the supply and demand balance wobbled.

Still, the current upheaval in the housing sector may prove an opportunity for companies to recalibrate their strategies to make the most out of their investments.

Here are five stocks worth exploring amid a housing market turmoil in the US.

 

Park Hotels & Resorts (NYSE: PK)

The company has reopened three hotels this year after the virus threat waned. The total number of rooms for all these properties is 1,381.

The company had slashed its budget on maintenance projects for 2021 to US$40 million.

It hopes to reopen seven more hotels in the coming quarters when the travel industry is expected to be back on its feet.

Its market cap is about US$4.974 billion.

As of March 31, 2021, Park Hotel's net debt was around US$4.5 billion. Its total cash was around US$868 million.

The stock gained more than 100% in the last 12 months. It was trading at US$21.09 at 11:52 pm ET on May 26.

Source: Pixabay.

Also Read: Two REIT Stocks to Watch on NYSE

Brixmor Property Group (NYSE: BRX)

Its net income was US$52.4 million in the March quarter. The board declared a quarterly dividend of US$0.215. Brixmor's market cap is US$6.66 billion.

Brixmor has acquired The Center of Bonita Springs in Florida for US$48.5 million.

The company collected around 94.2% of its billed rent for April 2021.

The stock was priced at around US$22 on May 26. It gained over 90% in the past year.

The company also had acquired an adjacent plot to Bonita Springs in a multi-million dollar deal this year.

Kimco Realty Corporation (NYSE: KIM)

Its net income was US$131.6 million in Q1 from US$83.7 million YoY.

Kimco's market cap is around US$9 billion. In Q1, Kimco sold two shopping centres and four land parcels for US$56 million and US$18.5 million, respectively. The stock was trading at US$20.76 as of 12:55 pm ET on May 26. It rose nearly 70% over a year.

Kimco had US$2.3 billion in cash at the end of Q1.

The board declared a quarterly cash dividend of US$0.17 per share for shareholders.

Kimco also owns grocery stores and mixed-use assets.

Also Read: Three real estate stocks that might make waves in 2021

Dream Finders Home (NASDAQ: DFH)

Dream Finders is one of the leading home building companies. Its net income was up 145% YoY to US$16.1 million in Q1 of 2021. The net profit margin was 4.7%.

The improvement was due to an increase in home sales revenues.

New home orders surged 137% YoY to a record 2,010 homes. Dream Finders built homes in more than half a dozen states, including Florida, North Carolina, Texas, and Colorado.

Its market cap is around US$2.5 billion.

Dream Finder's stock was priced at US$28.37 at the market close on May 26, up 3.69% from the previous close. It rose around 11% in the past month.

Dream Finders had acquired the North Carolina-based homebuilder H&H Homes In 2020.

Ryman Hospitality Properties (NYSE: RHP)

Ryman posted revenue of US$84.175 million in Q1. On May 3, 2021, it announced to acquire the remaining 35% ownership in Gaylord Rockies and 130 acres of land for US$210 million.

The company's total debt was around US$2.7 billion.

Ryman's market cap is around US$4 billion.

The stock was trading at US$75.74 at the close on May 26, an increase of 3.44% from the previous close.

In Q1, the hotel occupancy rate was 20.4%. Ryman also collected around US$10 million in various fees. The company operates five top hotels in the United States.

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