REITs Blast Higher On Powell Rate Cut Remarks
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REITs
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Real estate investment trusts late this week found many more buyers after Fed Chair Jerome Powell “signaled” that interest rate cuts were just ahead — although he failed to announce actual cuts this time around.
REITs managed to hit new 2023 highs even after New York Fed President John Williams said Friday morning on CNBC that Fed members were not looking at cuts.
Not all real estate investment trusts took off to higher highs but most ended the week with good gains. The daily price chart for the group benchmark, the Real Estate Select Sector SPDR Fund holding a portfolio of 31 REITs, looks like this:
4 REITs With New 52-Week Highs.
Franklin BSP Realty Trust is a REIT mortgage firm with a market capitalization of $1.17 billion. It trades with a price-earnings ratio of 23 and at 90% of book value. The company has a debt-to-price ratio of 2.47, a relatively high figure making it interest rate sensitive, for sure. Investors receive a 10% dividend.
The REIT is having a good year with earnings up by 75.52%. For a New York Stock Exchange-traded security, average daily volume is relatively low at 339,000 shares.
The daily price chart is here:
Essential Properties Realty Trust buys, owns and manages “single tenant properties that are net-leased to middle market companies operating in service-oriented or experience-based business.” That’s according to the company website. Market cap comes to $4.01 billion. Essential pays a dividend of 4.34%.
The REIT’s earnings this year are up by 22.22%. The record over the past 5 years shows EPS growth of 45.13%.
Here’s the daily price chart:
ProLogis is one of the major REITs with a market capitalization of $125 billion. The company has operations in North and South America, in Europe and in Asia. It trades with a price-earnings ratio of 42 and at 2.37 times book value. ProLogis pays a 2.59% dividend.
This year’s earnings are off by 24.72% and, over the past 5 years, earnings are up by 6.73%.
Here’s the daily price chart:
ProLogis daily price chart, 12 16 23.
stockcharts.com
Urban Edge Properties invests in retail properties in urban areas mostly “along the Washington D. C. to Boston corridor.” Market capitalization comes to $2.18 billion and the REIT is trading with a price-earnings ratio of 53 and a negative book value. The company pays a dividend of 3.46%.
Earnings per share this year are down by 23%. Over the past 5 years, EPS is off by 8.43%.
The daily price chart looks like this:
Urban Edge Properties daily price chart, 12 16 23.
stockcharts.com
Those holding real estate investment trusts must be happy with apparent rate cut talk by the Fed Chair and it’s enough for them to keep hitting the buy button this week despite other concerns.
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