REITs are showing impressive growth as the economic recovery continues, which increases the value of their underlying real estate assets. While their reliance on debt may be of concern as the Fed is expected to raise interest rates soon, most REITs’ balance sheets have become less leveraged this year. Additionally, their high dividend-paying nature allows many investors to view REITs as bond substitutes. Thus, the industry should continue to perform well even in an environment of high interest rates.
Investor interest in REITs is evident in the Vanguard Real Estate Index Fund ETF (VNQ) 5.9% returns over the past month versus the SPDR S&P 500 Trust ETF (TO SPY) 2.8% returns.
Therefore, we believe that it might be wise to bet on Public Storage grade SCPI stocks (Message of public interest), Weyerhaeuser company (Wyoming), Regency Centers Corporation (REG) and Lamar Advertising Company (LAMR).
Public storage (Message of public interest)
PSA, a member of the S&P 500 and the FT Global 500, is a REIT that primarily acquires, develops, owns and operates self-storage facilities. With thousands of locations in the United States and Europe, PSA owns more than 170 million net square feet of rentable real estate.
PSA’s self-storage facilities revenue increased 22.9% year-on-year to $ 840.51 million for its fiscal third quarter ended September 30, 2021. Its net profit was $ 491.63, up 50.9% year-on-year. In addition, its EPS stood at $ 2.52, up 78.7% year-on-year.
For its 2021 fiscal year, analysts expect PSA’s revenue to rise to $ 3.38 billion, an increase of 16.1% year-over-year. In addition, the company’s EPS is expected to increase 40.4% year-on-year to $ 8.83 in the current year. Additionally, it has beaten consensus EPS estimates in three of the past four quarters. Over the past year, the stock has gained 63.6% going to close yesterday’s trading session at $ 372.62.
public service announcements POWR odds reflect this promising outlook. The stock has an overall rating of B, which is equivalent to a purchase in our POWR rating system. POWR ratings evaluate stocks based on 118 distinct factors, each with its own weight.
Additionally, the stock has a B rating for momentum, stability, sentiment, and quality. Within the REIT – Industrial industry, PSA is ranked # 1 out of 21 stocks. Click on here to see additional POWR ratings for Growth and Value for PSA.
Weyerhaeuser Company (Wyoming)
WY is one of the largest private owners of forest land in the world, which began operations in 1900. It owns or controls approximately 11 million acres of forest land in the United States and manages additional forest land under long-term licenses in Canada.
On October 29, 2021, Devin W. Stockfish, President and CEO of the Company, said, “Our teams have done an exceptional job in the face of these headwinds and I am extremely proud of their collective focus on safety, solid execution and continuation of our service. clients.”
WY’s net sales increased 11.1% year-on-year to $ 2.35 billion for its fiscal third quarter, ended September 30, 2021. Its net profit was $ 482 million, up by 70.3% year-on-year, while its EPS increased 68.4%. year over year at $ 0.64. In addition, its fit EBITDA was $ 746 million, up from $ 745 million a year ago.
Analysts expect WY’s revenue to grow 34.3% year-on-year to $ 10.12 billion in its 2021 fiscal year. Its EPS is expected to grow 160.5% year-on-year to reach $ 3.36 for the current year. Over the past year, the stock has gained 22.1% to close yesterday’s session at $ 40.68.
WY’s strong fundamentals are reflected in its POWR ratings. The stock has an overall rating of B, indicating a purchase in our proprietary rating system. WY has a B rating for value, momentum, sentiment and quality. Within the REITs – Diversified industry, it is ranked # 4 out of 48 stocks. Click on here to see additional POWR ratings for growth and stability for WY.
Society of Regency Centers (REG)
REG is the nation’s leading owner, operator and developer of shopping centers in affluent and densely populated shopping areas. Operating as a fully integrated real estate company, REG is a Qualified Real Estate Investment Trust (REIT) and a member of the S&P 500 Index.
On November 4, 2021, Lisa Palmer, President and CEO, said, “We are very pleased with another quarter of strong results and continued improvement in operational trends, further accelerating our path to recovery. The increase in the dividend reflects our confidence in the restoration of the NOI and balance sheet strength to pre-pandemic levels, as well as a return to sustained growth over the long term. “
REG’s net income increased 825.3% year-over-year to $ 117.41 million in the third quarter, ended September 30, 2021. Its basic operating income was $ 163.88, up 39.6% year-over-year, and its NAREIT operating funds were $ 192.61 million, up 89.4% year-over-year.
Analysts expect REG revenue and EPS to grow 14.6% and 730.8%, respectively, year-over-year to $ 1.13 billion and $ 2.16 for fiscal 2021. Over the past year, the stock has gained 64% going to close yesterday’s trading session at $ 74.29. .
REG’s strong fundamentals are reflected in its POWR ratings. The stock has an overall rating of B, which translates into a purchase in our proprietary rating system. Plus, it has a B rating for growth, momentum, and stability. It is ranked n ° 5 out of 35 stocks in the REIT – Retail industry. Click on here to see additional POWR ratings for REG (value, sentiment and quality).
Lamar Advertising Company (LAMR)
LAMR is one of the largest outdoor advertising companies in North America, with more than 352,000 displays in the United States and Canada.
On December 07, 2021, LAMR announced the acquisition of Colossal Media, the leading operator of hand-painted walls and murals. LAMR CEO Sean Reilly said, “Colossal has set the standard for colorful and creative works of art that light up cityscapes, create buzz and produce results for the world’s best-known brands. Kelly and her exceptional team are well positioned to continue their growth, and at Lamar, we look forward to partnering with them to elevate Colossal to new heights of success.
LAMR’s net revenue was $ 476.89 million for the third quarter, ended September 30, 2021, up 23.5% year-over-year. Its net profit was $ 106.84 million, up 70.2% year-on-year, and its EPS increased 69.4% year-on-year to $ 1.05.
LAMR’s revenue is expected to increase 12.8% to $ 1.77 billion in its 2021 fiscal year. Its EPS is expected to increase 57.3% to $ 3.79 for the current year. It has beaten EPS estimates in three of the past four quarters. And over the past year, the stock has gained 48.1% in price to close yesterday’s trading session at $ 120.67.
LAMR has an overall rating of B, which translates into a purchase in our POWR rating system. It has a B rating for momentum, feeling, and quality. LAMR is ranked # 5 out of 48 REIT stocks – Diversified industry. Click on here to check other additional assessments for LAMR (Growth, Value and Stability).
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PSA shares remained unchanged in pre-market on Thursday. Year-to-date, PSA has gained 65.76%, compared to a 29.41% increase in the benchmark S&P 500 during the same period.
Riddhima is a financial journalist passionate about the analysis of financial instruments. With a masters in economics, she helps investors make informed investment decisions with her insightful commentary. Following…