REITs, real estate.
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While the overall performance of real estate investment trusts over the past year has been unremarkable, some REITs have outperformed others. The sector is sensitive to interest rates, and if you look at the ETF chart and the chart of a Treasury ETF, you can see how similar their movements are.
Here is a daily price chart for the iShares Realty Trust ETF:
iShares US Real Estate ETF daily price chart, 6 29 24.
Stock Chart
See how the high appeared in late December 2023 and the low appeared in mid-April 2024?
Below is the daily price chart for the iShares 20 Year Treasury Bond ETF.
iShares 20+ Year Treasury Bond ETF Daily Price Chart, 6 29 24.
Stock Chart
The high for bonds came in late December 2023, while the low, like for real estate investment trust ETFs, came in late April 2024. Of course, there are other factors at play depending on the type of real estate involved, but expectations around interest rates are a big consideration for investors.
Either way, some REITs are outperforming the entire sector…
Four REITs that performed well.
Iron Mountain (NYSE: IRM) offers “asset lifecycle management, data center, warehousing, and logistics.” Its market capitalization is $26.27 billion. Its price-to-earnings ratio is 136x. Its debt-to-equity ratio is 837x. Revenues have grown 1.46% this year and are down 12.68% over the past five years. The company pays a 2.90% dividend.
Iron mountain daily price chart, 6 29 24.
Stock Chart
Independence Realty Trust (NYSE: IRT) specializes in multifamily real estate throughout the United States, primarily in the Southeast, but also with properties in Colorado, Texas, and Indiana. It has a market capitalization of $4.22 billion. The stock trades at 1.23 times book value. Earnings have grown 457% this year. There is no five-year EPS record yet. Independence Realty pays a 4.27% dividend.
Independence Realty Trust daily price chart, 6 29 24.
Stock Chart
Omega Healthcare (NYSE: OHI) is a medical facilities real estate investment trust focused on skilled nursing and assisted living facilities. The company specializes in net lease financing structures. Revenues are up 56% this year and down 6.35% over the past five years. The price-to-earnings ratio is 31. The debt-to-equity ratio is 1.43. Omega offers investors a 7.82% dividend.
Omega Healthcare daily price chart, 6 29 24.
Stock Chart
Urban Edge Properties (NYSE: UE) is a retail REIT focused on shopping centers in the Boston-Washington DC corridor. The company leases, redevelops, and manages 75 properties. Revenues are down 98% this year. EPS growth over the past five years has increased 18.09%. The price-to-earnings ratio is 8. The debt-to-equity ratio is 1.66. Urban Edge pays a 3.57% dividend.
Urban Edge Properties daily price chart, 6 29 24.
Stock Chart
Statistics from FinViz.com. Charts from Stockcharts.com.
For further price chart analysis and commentary, please visit johnnavin.substack.com.