STAG Industrial: Company Growth Does Not Equate To Growth In Distributions To Investors

logo

Fundamentals

STAG Industrial (NYSE: STAG), a company in the industrial REIT sector with a market capitalization of $1.4 billion (categorized as a small capitalization stock), has benefited from a rebounding US economy. This is evidenced by:

  • The US has become an increasingly attractive country for manufacturing and distribution due to the size and buying power of the consumer market.
  • Overseas labor costs have been steadily rising.
  • Since 2004, industrial production and inventory levels are at all time highs.
  • Industrial demand continues to outpace supply.
  • The continued increase in E-commerce volume, as opposed to brick and mortar retailers, requires efficient warehouse solutions that can quickly fulfill and ship orders.

STAG Industrial has 253 buildings in 36 states with the majority of those being warehouse facilities. The company focuses on single-tenant industrial properties, a market estimated to be worth $250 billion. The industrial market is fragmented with no single dominant player. STAG’s market share is less than 1% in its niche and approximately 65% of their annualized base rent comes from the secondary market.

The primary market typically experiences an increase in occupancy and rental performance at least 6 months sooner than the secondary market. This should provide a favorable scenario for STAG due to their strong position and high concentration in the secondary market.

Acquisitions

Since their IPO in April 2011, STAG’s growth strategy has primarily been through aggressively seeking acquisitions. Fueled by debt and its ATM program, STAG has tripled in size from 18.3 to 48.5 million square feet in the last three years.

However, the results for investors in STAG have been less than stellar. Over the past three years, AFFO and dividend growth were 23 and 30 percent respectively, significantly lagging the increase in square footage. Same store revenue and cash net operating income has experience meager growth with the vast majority of additional revenue coming from the addition of new properties.

Financials

The positive aspect of STAG’s performance is they have maintained and, in some cases, improved their financial metrics including total debt to enterprise value and net debt to adjusted EBITDA. The average debt maturity has increased from 4 to 7.4 years and STAG has no major payments due in the coming 12 months. In addition, Fitch Ratings has upgraded the company’s credit rating from BBB- to BBB.

The Price-to-FFO multiple has remained below its historical average and STAG has been paying 90 percent of AFFO at a solid dividend yield of 6.5%.

Signup button

Summary

STAG has been issuing debt and equity to drive its aggressive growth strategy while maintaining a prudent eye on the debt metrics. Same store metrics have shown little growth. As a result of STAG’s equity dilution, growth in AFFO and dividend share has lagged the increases in square footage and revenue. Given the current share price, dividend yield has been attractive making STAG a potentially good option for an income oriented portfolio.

 Metrics 2012 2013 2014 2015
Square feet – Q1 18,272,568 31,160,765 39,046,566 48,533,893
Revenues – Q1, $000s 17,539 29,988 39,743 50,989
Revenues – Q1, in percent 71.0 32.5 28.3
Cash NOI – Q1, ‘000s 14,975 25,343 31,908 41,349
Cash NOI – Q1, in percent 69.2 25.9 29.6
Dividend per share, Q1, $ 0.2600 0.3000 0.3150 0.3375
Dividend payout ratio – Q1, in percent 87 91 88 91
Dividend yield – Q1, in percent 7.4 5.6 5.2 5.7
Alternate FFO per share – Q1, $ 0.30 0.33 0.36 0.35
AFFO per share – Q1, $ 0.30 0.33 0.36 0.37
Net Debt to adjusted EBITDA – Q1 6.2 4.7 4.7 5.3
Total debt to total enterprise value – Q1, in percent 46 27.8 27.0 29.9
Weighted average interest rate – Q1, in percent 4.55 4.01 3.82 4.47
Weighted average debt maturity – Q1, years 4.0 5.5 4.8 7.4
Revenue – Same Store – Q1, in percent (0.8) 4.6 (1.4) 1.6
Cash NOI – Same Store – Q1, in percent 3.8 2.3 (4.9) 1.5
Occupancy – Net leased – Q1, in percent 94.2 95.4 95.3 94.4
Average Lease Term – Q1, years 5.5 5.0 4.7 4.2
Share Price on 31 March, $ 13.96 21.27 24.1 23.52
P/FFO on 31 March 11.6 16.1 16.7 16.8

Written by Heli Brecailo

Disclaimer: This newsletter is not engaged in rendering tax, accounting, or other professional advice through this publication. No statement in this issue is to be construed as a recommendation to buy or sell any security or other investment. Please do your own due diligence before making any investment decision. Some information presented in this publication has been obtained from third-party sources considered to be reliable. Sources are not required to make representations as to the accuracy of the information, however, and consequently the publisher cannot guarantee accuracy.

Disclosure: The author has no positions in any shares mentioned, and no plans to initiate any positions within the next 72 hours.​

U.S. REIT – Top Performing Equity Stocks

Here is a look at the best performing stocks from the last five trading sessions. Note that the list includes all equity REIT stocks, which have been ranked by share price percent change, from highest to lowest.

  • Total 169 Equity REITs
  • Ranked by Last Week Share Price Percent Change
  • This Month Share Price Percent Change – 24 April 2015 vs. 31 March 2015
  • Last Week Share Price Percent Change – 24 April 2015 vs. 17 April 2015
  • Dividend Yield – As of 24 April 2015

Signup button

# Company Ticker Property Sector This month share price percent change Last week share price percent change Annual Dividend Div. Yield
1 Associated Estates Realty Corporation AEC Residential 15.3 17.6 0.8 3.0
2 Sotherly Hotels Inc. SOHO Lodging/Resorts 7.4 7.8 0.3 3.4
3 Sun Communities, Inc. SUI Residential (0.7) 5.6 2.6 3.9
4 Equity LifeStyle Properties, Inc. ELS Residential 0.4 5.3 1.5 2.7
5 Pennsylvania Real Estate Investment Trust PEI Retail (2.8) 5.0 0.8 3.7
6 Trade Street Residential, Inc. TSRE Residential 2.2 4.6 0.4 5.2
7 CubeSmart CUBE Self Storage (1.5) 4.5 0.6 2.7
8 Pebblebrook Hotel Trust PEB Lodging/Resorts (0.2) 4.5 1.2 2.7
9 Chesapeake Lodging Trust CHSP Lodging/Resorts (2.5) 4.4 1.4 4.2
10 Equinix, Inc. EQIX Diversified – Data Center 5.7 4.2 6.8 2.7
11 Summit Hotel Properties, Inc., INN Lodging/Resorts (3.6) 4.1 0.5 3.5
12 Xenia Hotels & Resorts, Inc. XHR Lodging/Resorts 1.1 4.0 0.9 4.0
13 Education Realty Trust, Inc. EDR Residential 0.8 3.9 1.4 4.0
14 CoreSite Realty Corporation COR Diversified – Data Center 3.4 3.9 1.7 3.3
15 DCT Industrial Trust Inc. DCT Industrial/Office (1.0) 3.6 1.1 3.3
16 CyrusOne, Inc. CONE Diversified – Data Center 2.7 3.4 1.3 3.9
17 Apartment Investment and Management Company Class A AIV Residential (1.7) 3.3 1.1 2.9
18 Hersha Hospitality Trust Class A HT Lodging/Resorts 1.9 3.1 0.3 4.2
19 QTS Realty Trust, Inc. Class A QTS Diversified – Data Center 4.4 3.1 1.3 3.4
20 LaSalle Hotel Properties LHO Lodging/Resorts (1.2) 3.0 1.8 4.7
21 Home Properties, Inc. HME Residential (0.5) 2.9 3.0 4.4
22 UDR, Inc. UDR Residential (1.5) 2.9 1.1 3.3
23 Post Properties, Inc. PPS Residential (0.1) 2.8 1.6 2.8
24 Investors Real Estate Trust IRET Diversified (1.5) 2.8 0.5 7.0
25 Columbia Property Trust, Inc. CXP Industrial/Office 1.6 2.7 1.2 4.4
26 American Campus Communities, Inc. ACC Residential (1.5) 2.7 1.5 3.6
27 Extra Space Storage Inc. EXR Self Storage 0.1 2.7 1.9 2.8
28 Rexford Industrial Realty, Inc. REXR Industrial/Office 0.4 2.7 0.5 3.0
29 Monmouth Real Estate Investment Corporation Class A MNR Industrial/Office (3.2) 2.6 0.6 5.6
30 American Residential Properties, Inc. ARPI Diversified 6.3 2.6
31 NorthStar Realty Finance Corp. NRF Diversified 4.7 2.5 1.6 8.4
32 Physicians Realty Trust DOC Health Care (0.1) 2.5 0.9 5.1
33 Weyerhaeuser Company WY Timber (2.5) 2.5 1.2 3.6
34 Healthcare Realty Trust Incorporated HR Health Care (3.0) 2.5 1.2 4.5
35 DiamondRock Hospitality Company DRH Lodging/Resorts 0.3 2.4 0.5 3.5
36 Mid-America Apartment Communities, Inc. MAA Residential (0.7) 2.4 3.1 4.0
37 National Health Investors, Inc. NHI Health Care (2.1) 2.3 3.4 4.9
38 BioMed Realty Trust, Inc. BMR Industrial/Office (5.3) 2.2 1.0 4.8
39 Digital Realty Trust, Inc. DLR Diversified – Data Center 1.2 2.2 3.4 5.1
40 Starwood Waypoint Residential Trust SWAY Diversified 1.9 2.1 0.6 2.1
41 Essex Property Trust, Inc. ESS Residential (1.3) 2.0 5.8 2.5
42 FelCor Lodging Trust Incorporated FCH Lodging/Resorts 0.2 2.0 0.2 1.4
43 Ashford Hospitality Prime, Inc. AHP Lodging/Resorts (3.5) 2.0 0.2 1.2
44 Omega Healthcare Investors, Inc. OHI Health Care (5.0) 1.9 2.2 5.6
45 Sabra Health Care REIT, Inc. SBRA Health Care (5.8) 1.9 1.6 5.0
46 Public Storage PSA Self Storage (1.8) 1.9 5.6 2.9
47 Ryman Hospitality Properties, Inc. RHP Lodging/Resorts (1.1) 1.8 2.6 4.3
48 Douglas Emmett, Inc DEI Industrial/Office (1.3) 1.8 0.8 2.9
49 STAG Industrial, Inc. STAG Industrial/Office (4.3) 1.8 1.4 6.0
50 AvalonBay Communities, Inc. AVB Residential (1.7) 1.8 5.0 2.9
51 Terreno Realty Corporation TRNO Industrial/Office (0.5) 1.7 0.6 2.8
52 Camden Property Trust CPT Residential (1.1) 1.7 2.8 3.6
53 Paramount Group, Inc. PGRE Industrial/Office (1.1) 1.7 0.4 2.0
54 SL Green Realty Corp. SLG Industrial/Office 0.3 1.7 2.4 1.9
55 Mack-Cali Realty Corporation CLI Industrial/Office (3.1) 1.7 0.6 3.2
56 Empire State Realty Trust, Inc. Class A ESRT Industrial/Office (3.0) 1.7 0.3 1.9
57 Armada Hoffler Properties, Inc. AHH Diversified (1.4) 1.6 0.7 6.5
58 Equity Residential EQR Residential (1.7) 1.6 2.2 2.9
59 Saul Centers, Inc. BFS Retail (5.1) 1.6 1.7 3.2
60 UMH Properties, Inc. UMH Residential 2.6 1.6 0.7 7.0
61 Healthcare Trust of America, Inc. Class A HTA Health Care (2.7) 1.6 1.2 4.3
62 Retail Properties of America, Inc. Class A RPAI Retail (3.1) 1.6 0.7 4.3
63 Alexander’s, Inc. ALX Diversified (2.6) 1.6 14.0 3.1
64 Retail Opportunity Investments Corp. ROIC Retail (3.2) 1.5 0.7 3.8
65 Sovran Self Storage, Inc. SSS Self Storage (3.1) 1.5 3.0 3.3
66 First Potomac Realty Trust FPO Industrial/Office (4.0) 1.5 0.6 5.3
67 Chatham Lodging Trust CLDT Lodging/Resorts (0.4) 1.5 1.2 4.1
68 Alexandria Real Estate Equities, Inc. ARE Industrial/Office (3.9) 1.5 3.0 3.1
69 CatchMark Timber Trust, Inc. Class A CTT Timber (0.8) 1.5 0.5 4.3
70 Kilroy Realty Corporation KRC Industrial/Office (2.6) 1.5 1.4 1.9
71 Winthrop Realty Trust FUR Diversified 1.2 1.5 0.7 3.9
72 CBL & Associates Properties, Inc. CBL Retail (2.6) 1.4 1.1 5.5
73 W.P. Carey Inc. WPC Diversified (2.5) 1.3 3.8 5.7
74 Lamar Advertising Company Class A LAMR Diversified 1.9 1.3 2.7 4.5
75 Silver Bay Realty Trust Corp. SBY Diversified (1.4) 1.3 0.4 2.3
76 Easterly Government Properties, Inc. DEA Industrial/Office 0.9 1.3
77 Inland Real Estate Corporation IRC Retail (0.5) 1.2 0.6 5.4
78 Hudson Pacific Properties, Inc. HPP Industrial/Office (4.5) 1.2 0.5 1.6
79 Universal Health Realty Income Trust UHT Health Care (5.3) 1.2 2.5 4.8
80 OUTFRONT Media Inc. OUT Diversified (2.4) 1.1 1.4 4.7
81 Highwoods Properties, Inc. HIW Industrial/Office (1.0) 1.1 1.7 3.8
82 Regency Centers Corporation REG Retail (3.0) 1.1 1.9 2.9
83 New Senior Investment Group Inc SNR Health Care (0.4) 1.0 0.9 5.6
84 Federal Realty Investment Trust FRT Retail (4.6) 1.0 3.5 2.5
85 Getty Realty Corp. GTY Retail (2.8) 1.0 0.9 5.0
86 Bluerock Residential Growth REIT, Inc. Class A BRG Residential 2.3 1.0 1.2 8.5
87 Ramco-Gershenson Properties Trust RPT Retail (1.6) 0.9 0.8 4.4
88 Boston Properties, Inc. BXP Industrial/Office (1.9) 0.9 2.6 1.9
89 WP GLIMCHER, Inc WPG Retail (6.3) 0.9 0.4 2.8
90 EPR Properties EPR Diversified (0.7) 0.9 3.6 6.1
91 Sunstone Hotel Investors, Inc. SHO Lodging/Resorts (1.7) 0.9 0.2 1.2
92 Macerich Company MAC Retail (1.3) 0.9 2.6 3.1
93 One Liberty Properties, Inc. OLP Diversified (3.6) 0.9 1.6 6.6
94 Weingarten Realty Investors WRI Retail (4.5) 0.9 1.4 4.0
95 RLJ Lodging Trust RLJ Lodging/Resorts (1.3) 0.8 1.3 4.3
96 Lexington Realty Trust LXP Diversified (2.4) 0.8 0.7 7.1
97 Health Care REIT, Inc. HCN Health Care (1.9) 0.8 3.3 4.4
98 Corrections Corporation of America CXW Diversified (2.1) 0.8 2.2 5.5
99 Rouse Properties, Inc. RSE Retail (3.8) 0.8 0.7 3.9
100 General Growth Properties, Inc. GGP Retail (2.6) 0.8 0.7 2.4
101 Chambers Street Properties CSG Industrial/Office (0.3) 0.8 0.5 6.5
102 American Homes 4 Rent Class A AMH Diversified 3.9 0.8 0.2 1.2
103 American Assets Trust, Inc. AAT Diversified (4.1) 0.8 0.9 2.2
104 CareTrust REIT Inc CTRE Health Care (0.4) 0.7 0.6 4.7
105 Ashford Hospitality Trust, Inc. AHT Lodging/Resorts (1.0) 0.7 0.5 5.0
106 Liberty Property Trust LPT Industrial/Office (1.1) 0.7 1.9 5.4
107 Gladstone Commercial Corporation GOOD Industrial/Office 0.1 0.7 1.5 8.1
108 Gladstone Land Corp. LAND Diversified 1.9 0.7 0.5 3.9
109 DuPont Fabros Technology, Inc. DFT Diversified – Data Center 0.0 0.6 1.7 5.1
110 Strategic Hotels & Resorts, Inc. BEE Lodging/Resorts (3.4) 0.6
111 Plum Creek Timber Company, Inc. PCL Timber (2.2) 0.6 1.8 4.1
112 National Retail Properties, Inc. NNN Retail 0.2 0.6 1.7 4.1
113 Cedar Realty Trust, Inc. CDR Retail (1.7) 0.5 0.2 2.7
114 Kimco Realty Corporation KIM Retail (5.3) 0.5 1.0 3.8
115 First Industrial Realty Trust, Inc. FR Industrial/Office (6.0) 0.5 0.5 2.5
116 New York REIT, Inc. NYRT Industrial/Office (3.5) 0.5 0.5 4.5
117 Preferred Apartment Communities, Inc. APTS Residential 3.2 0.4 0.7 6.3
118 Vornado Realty Trust VNO Diversified (4.1) 0.4 2.5 2.3
119 Host Hotels & Resorts, Inc. HST Lodging/Resorts 2.5 0.4 0.8 3.9
120 Equity One, Inc. EQY Retail (3.4) 0.4 0.9 3.4
121 Acadia Realty Trust AKR Retail (6.6) 0.3 1.0 2.9
122 Gramercy Property Trust Inc. GPT Diversified 0.2 0.3 0.8 2.8
123 Gaming and Leisure Properties, Inc. WI GLPI Diversified (0.8) 0.3 2.2 6.0
124 Brandywine Realty Trust BDN Industrial/Office (6.1) 0.3 0.6 4.0
125 Simon Property Group, Inc. SPG Retail (3.5) 0.2 5.6 3.0
126 Realty Income Corporation O Retail (4.3) 0.2 2.3 4.6
127 Cousins Properties Incorporated CUZ Industrial/Office (3.6) 0.2 0.3 3.1
128 Whitestone REIT WSR Diversified (2.3) 0.2 1.1 7.4
129 Equity Commonwealth EQC Industrial/Office (2.1) 0.2
130 Crown Castle International Corp CCI Infrastructure 4.2 0.2 3.3 3.8
131 Taubman Centers, Inc. TCO Retail (4.5) 0.1 2.3 3.1
132 Monogram Residential Trust Inc MORE Residential 1.1 0.1 0.3 3.2
133 GEO Group Inc GEO Diversified (3.7) 0.1 2.5 5.9
134 Franklin Street Properties Corp. FSP Industrial/Office (2.4) 0.1 0.8 6.1
135 Spirit Realty Capital, Inc. SRC Retail (2.3) 0.7 5.8
136 Excel Trust, Inc EXL Retail 13.0 0.7 4.5
137 Campus Crest Communities, Inc. CCG Residential (9.5)
138 PS Business Parks, Inc. PSB Industrial/Office (4.3) (0.1) 2.0 2.5
139 DDR Corp. DDR Retail (4.4) (0.1) 0.7 3.9
140 Ventas, Inc. VTR Health Care (0.3) (0.1) 2.3 3.2
141 Parkway Properties, Inc. PKY Industrial/Office (2.9) (0.2) 0.8 4.5
142 EastGroup Properties, Inc. EGP Industrial/Office (0.4) (0.2) 2.3 3.8
143 Kite Realty Group Trust KRG Retail (2.9) (0.2) 1.1 4.0
144 LTC Properties, Inc. LTC Health Care (3.2) (0.3) 2.0 4.6
145 CorEnergy Infrastructure Trust, Inc. CORR Infrastructure 0.3 (0.3) 0.5 7.5
146 Duke Realty Corporation DRE Industrial/Office (6.2) (0.3) 0.7 3.3
147 Independence Realty Trust, Inc. IRT Residential (1.5) (0.3) 0.7 7.7
148 Urstadt Biddle Properties Inc. Class A UBA Retail (8.7) (0.3) 1.0 4.8
149 Senior Housing Properties Trust SNH Health Care (3.5) (0.4) 1.6 7.3
150 Piedmont Office Realty Trust, Inc. Class A PDM Industrial/Office (2.3) (0.4) 0.8 4.6
151 Tanger Factory Outlet Centers, Inc. SKT Retail (2.4) (0.4) 1.1 3.3
152 Washington Real Estate Investment Trust WRE Diversified (5.8) (0.5) 1.2 4.6
153 Brixmor Property Group, Inc. BRX Retail (7.2) (0.6) 0.9 3.7
154 Agree Realty Corporation ADC Retail (4.0) (0.6) 1.8 5.7
155 Medical Properties Trust, Inc. MPW Health Care (0.5) (0.7) 0.9 6.0
156 Urban Edge Properties UE Retail (1.3) (0.7) 0.8 3.4
157 Prologis, Inc. PLD Industrial/Office (2.3) (0.7) 1.4 3.4
158 American Tower Corporation AMT Infrastructure 1.2 (0.8) 1.7 1.8
159 Rayonier Inc. RYN Timber (3.1) (0.9) 1.0 3.8
160 Iron Mountain, Inc. IRM Diversified 0.1 (1.0) 1.9 5.2
161 Corporate Office Properties Trust OFC Industrial/Office (4.3) (1.0) 1.1 3.9
162 City Office REIT, Inc. CIO Industrial/Office 2.0 (1.1) 0.9 7.2
163 Hospitality Properties Trust HPT Lodging/Resorts (4.8) (1.2) 2.0 6.4
164 Government Properties Income Trust GOV Industrial/Office (3.5) (1.3) 1.7 7.8
165 Potlatch Corporation PCH Timber (6.0) (1.3) 1.5 4.0
166 HCP, Inc. HCP Health Care (1.8) (1.8) 2.3 5.3
167 Select Income REIT SIR Diversified (5.6) (1.8) 2.0 8.5
168 American Realty Capital Properties, Inc. Class A ARCP Retail (7.4) (3.0)
169 STORE Capital Corporation STOR Retail (6.0) (3.6) 1.0 4.6

Notes from the author

This is not a recommendation to buy or sell stocks. The highest-yield stocks are not necessarily the best choice for your portfolio. The purpose of this ranking is to shorten your stock analysis by enabling comparison of stock and sector performance. This is a snapshot of information available on 24 April 2015. Please perform your own due diligence before acting. The equity REITs are constituent companies of the FTSE NAREIT All REITs Index as of 31 March 2015. Companies whose equity market capitalization is lower than $100 million have been disregarded.Button


Written by Heli Brecailo

Disclaimer: This newsletter is not engaged in rendering tax, accounting, or other professional advice through this publication. No statement in this issue is to be construed as a recommendation to buy or sell any security or other investment. Please do your own due diligence before making any investment decision. Some information presented in this publication has been obtained from third-party sources considered to be reliable. Sources are not required to make representations as to the accuracy of the information, however, and consequently the publisher cannot guarantee accuracy.

Disclosure: The author has no positions in any shares mentioned, and no plans to initiate any positions within the next 72 hours.​

U.S. REIT – Worst Performing Stocks By Sector This Week

Here is a look at the worst and best performing stocks by sector from the last five trading sessions. Note that the list includes all equity REIT stocks, which have been ranked by sector and share price percent change, from lowest to highest.

  • Total 169 Equity REITs
  • Share Price Percent Change – 17 April 2015 vs. 10 April 2015
  • Price-to-FFO, Dividend Yield – As of 17 April 2015
  • Sector’s Price-to-FFO – Median Price-to-FFO by sector
  • FFO in accordance with NAREIT definition from last available quarter (Mostly Q4-2014).
  • Some companies have not published FFO (That explains blank spaces).
WANT TO PLAY WITH THIS RANKING? DOWNLOAD THE EXCEL FILE!
Property Sector Company Ticker Share price percent change Price-to-FFO Sector’s Price-to-FFO Div. Yield
Diversified – Data Center CoreSite Realty Corporation COR (4.1) 19.9 17.1 3.5
Diversified – Data Center CyrusOne, Inc. CONE (2.2) 28.6 17.1 4.1
Diversified – Data Center Equinix, Inc. EQIX (1.5) 2.9
Diversified – Data Center Digital Realty Trust, Inc. DLR 0.1 11.7 17.1 5.2
Diversified – Data Center DuPont Fabros Technology, Inc. DFT 0.2 14.0 17.1 5.2
Diversified – Data Center QTS Realty Trust, Inc. Class A QTS 1.0 17.1 17.1 3.5
Self Storage CubeSmart CUBE (2.8) 21.9 21.9 2.8
Self Storage Sovran Self Storage, Inc. SSS (2.5) 20.7 21.9 3.3
Self Storage Extra Space Storage Inc. EXR (1.9) 26.5 21.9 2.9
Self Storage Public Storage PSA (1.9) 21.9 21.9 2.9
Retail WP GLIMCHER, Inc WPG (3.6) 8.4 18.5 2.8
Retail Retail Properties of America, Inc. Class A RPAI (3.5) 14.7 18.5 4.3
Retail American Realty Capital Properties, Inc. Class A ARCP (3.4)
Retail Acadia Realty Trust AKR (3.0) 27.1 18.5 3.0
Retail Cedar Realty Trust, Inc. CDR (2.9) 15.3 18.5 2.7
Retail Urstadt Biddle Properties Inc. Class A UBA (2.9) 22.0 18.5 4.8
Retail Pennsylvania Real Estate Investment Trust PEI (2.8) 9.1 18.5 3.9
Retail DDR Corp. DDR (2.6) 20.3 18.5 3.9
Retail Agree Realty Corporation ADC (2.5) 14.0 18.5 5.7
Retail STORE Capital Corporation STOR (2.4) 17.8 18.5 4.4
Retail Federal Realty Investment Trust FRT (2.4) 30.8 18.5 2.5
Retail Kimco Realty Corporation KIM (2.4) 16.6 18.5 3.8
Retail Weingarten Realty Investors WRI (2.3) 16.7 18.5 4.1
Retail Taubman Centers, Inc. TCO (1.8) 34.1 18.5 3.1
Retail Urban Edge Properties UE (1.8) 3.4
Retail Brixmor Property Group, Inc. BRX (1.7) 14.4 18.5 3.6
Retail Kite Realty Group Trust KRG (1.7) 13.7 18.5 4.0
Retail Simon Property Group, Inc. SPG (1.6) 19.1 18.5 3.0
Retail Regency Centers Corporation REG (1.6) 20.9 18.5 3.0
Retail Equity One, Inc. EQY (1.5) 25.7 18.5 3.4
Retail Retail Opportunity Investments Corp. ROIC (1.5) 20.8 18.5 3.9
Retail Rouse Properties, Inc. RSE (1.4) 12.6 18.5 4.0
Retail Getty Realty Corp. GTY (1.1) 11.5 18.5 5.0
Retail Ramco-Gershenson Properties Trust RPT (1.1) 90.7 18.5 4.4
Retail General Growth Properties, Inc. GGP (0.9) 18.8 18.5 2.4
Retail Tanger Factory Outlet Centers, Inc. SKT (0.7) 21.5 18.5 3.3
Retail Saul Centers, Inc. BFS (0.7) 21.5 18.5 3.2
Retail Inland Real Estate Corporation IRC (0.6) 10.5 18.5 5.4
Retail Realty Income Corporation O (0.5) 19.2 18.5 4.6
Retail CBL & Associates Properties, Inc. CBL (0.5) 5.8 18.5 5.6
Retail Spirit Realty Capital, Inc. SRC (0.3) 14.8 18.5 5.8
Retail Excel Trust, Inc EXL 0.1 26.4 18.5 4.5
Retail National Retail Properties, Inc. NNN 0.3 18.2 18.5 4.1
Retail Macerich Company MAC 1.4 20.8 18.5 3.2
Health Care Sabra Health Care REIT, Inc. SBRA (3.6) 14.2 17.3 5.1
Health Care Omega Healthcare Investors, Inc. OHI (2.7) 13.9 17.3 5.7
Health Care National Health Investors, Inc. NHI (2.7) 15.9 17.3 5.0
Health Care Universal Health Realty Income Trust UHT (2.1) 18.0 17.3 4.8
Health Care Physicians Realty Trust DOC (2.1) 22.6 17.3 5.2
Health Care Healthcare Realty Trust Incorporated HR (1.9) 17.3 17.3 4.6
Health Care Ventas, Inc. VTR (1.5) 15.7 17.3 3.2
Health Care Healthcare Trust of America, Inc. Class A HTA (1.4) 20.2 17.3 4.3
Health Care New Senior Investment Group Inc SNR (1.4) 17.8 17.3 5.6
Health Care LTC Properties, Inc. LTC (1.3) 17.4 17.3 4.6
Health Care Health Care REIT, Inc. HCN (1.2) 21.9 17.3 4.4
Health Care Medical Properties Trust, Inc. MPW (1.1) 24.6 17.3 6.0
Health Care CareTrust REIT Inc CTRE (0.5) 14.0 17.3 4.8
Health Care Senior Housing Properties Trust SNH 0.2 11.2 17.3 7.3
Health Care HCP, Inc. HCP 1.4 15.4 17.3 5.2
Industrial/Office Empire State Realty Trust, Inc. Class A ESRT (3.4) 20.4 16.0 1.9
Industrial/Office Monmouth Real Estate Investment Corporation Class A MNR (3.2) 18.7 16.0 5.7
Industrial/Office Douglas Emmett, Inc DEI (3.2) 18.5 16.0 2.9
Industrial/Office Rexford Industrial Realty, Inc. REXR (2.8) 20.3 16.0 3.1
Industrial/Office Kilroy Realty Corporation KRC (2.6) 23.4 16.0 1.9
Industrial/Office Alexandria Real Estate Equities, Inc. ARE (2.2) 27.0 16.0 3.2
Industrial/Office Mack-Cali Realty Corporation CLI (2.1) 13.5 16.0 3.3
Industrial/Office Terreno Realty Corporation TRNO (2.1) 27.9 16.0 2.9
Industrial/Office New York REIT, Inc. NYRT (2.0) 10.9 16.0 4.6
Industrial/Office Hudson Pacific Properties, Inc. HPP (2.0) 32.6 16.0 1.6
Industrial/Office DCT Industrial Trust Inc. DCT (1.9) 18.0 16.0 3.4
Industrial/Office Corporate Office Properties Trust OFC (1.8) 20.9 16.0 3.9
Industrial/Office Brandywine Realty Trust BDN (1.6) 12.5 16.0 4.0
Industrial/Office PS Business Parks, Inc. PSB (1.6) 17.4 16.0 2.5
Industrial/Office Easterly Government Properties, Inc. DEA (1.4)
Industrial/Office Parkway Properties, Inc. PKY (1.3) 13.6 16.0 4.4
Industrial/Office Highwoods Properties, Inc. HIW (1.2) 15.1 16.0 3.8
Industrial/Office BioMed Realty Trust, Inc. BMR (1.1) 15.0 16.0 5.0
Industrial/Office City Office REIT, Inc. CIO (1.1) 18.2 16.0 7.2
Industrial/Office Liberty Property Trust LPT (1.0) 13.1 16.0 5.4
Industrial/Office First Industrial Realty Trust, Inc. FR (1.0) 15.7 16.0 2.5
Industrial/Office Equity Commonwealth EQC (1.0) 13.8 16.0
Industrial/Office SL Green Realty Corp. SLG (0.9) 22.1 16.0 1.9
Industrial/Office STAG Industrial, Inc. STAG (0.9) 16.3 16.0 6.1
Industrial/Office First Potomac Realty Trust FPO (0.9) 10.4 16.0 5.3
Industrial/Office Boston Properties, Inc. BXP (0.7) 27.1 16.0 1.9
Industrial/Office Government Properties Income Trust GOV (0.7) 10.0 16.0 7.7
Industrial/Office Franklin Street Properties Corp. FSP (0.4) 11.6 16.0 6.1
Industrial/Office Duke Realty Corporation DRE (0.3) 25.6 16.0 3.3
Industrial/Office EastGroup Properties, Inc. EGP (0.1) 16.5 16.0 3.8
Industrial/Office Gladstone Commercial Corporation GOOD 7.1 16.0 8.1
Industrial/Office Piedmont Office Realty Trust, Inc. Class A PDM 0.1 11.4 16.0 4.6
Industrial/Office Chambers Street Properties CSG 0.1 13.9 16.0 6.5
Industrial/Office Columbia Property Trust, Inc. CXP 0.4 13.6 16.0 4.5
Industrial/Office Paramount Group, Inc. PGRE 0.5 12.0 16.0 2.0
Industrial/Office Prologis, Inc. PLD 0.9 21.0 16.0 3.4
Industrial/Office Cousins Properties Incorporated CUZ 1.0 10.6 16.0 3.1
Lodging/Resorts Summit Hotel Properties, Inc., INN (3.6) 17.1 16.1 3.6
Lodging/Resorts Xenia Hotels & Resorts, Inc. XHR (3.2) 4.2
Lodging/Resorts Ryman Hospitality Properties, Inc. RHP (2.3) 8.4 16.1 4.4
Lodging/Resorts Strategic Hotels & Resorts, Inc. BEE (2.1) 21.3 16.1
Lodging/Resorts Ashford Hospitality Prime, Inc. AHP (2.0) 18.9 16.1 1.3
Lodging/Resorts Chatham Lodging Trust CLDT (1.8) 31.4 16.1 4.2
Lodging/Resorts Ashford Hospitality Trust, Inc. AHT (1.5) 14.8 16.1 5.1
Lodging/Resorts LaSalle Hotel Properties LHO (1.4) 16.1 16.1 4.0
Lodging/Resorts Hersha Hospitality Trust Class A HT (1.4) 13.3 16.1 4.4
Lodging/Resorts RLJ Lodging Trust RLJ (0.9) 14.5 16.1 4.3
Lodging/Resorts Chesapeake Lodging Trust CHSP (0.9) 20.8 16.1 4.4
Lodging/Resorts DiamondRock Hospitality Company DRH (0.8) 18.2 16.1 3.6
Lodging/Resorts Sotherly Hotels Inc. SOHO (0.7) 10.5 16.1 3.7
Lodging/Resorts Pebblebrook Hotel Trust PEB (0.6) 25.9 16.1 2.8
Lodging/Resorts Hospitality Properties Trust HPT (0.5) 9.1 16.1 6.2
Lodging/Resorts FelCor Lodging Trust Incorporated FCH (0.4) 25.6 16.1 1.4
Lodging/Resorts Sunstone Hotel Investors, Inc. SHO (0.4) 15.6 16.1 1.2
Lodging/Resorts Host Hotels & Resorts, Inc. HST 3.4 12.9 16.1 3.9
Residential Campus Crest Communities, Inc. CCG (5.4)
Residential UMH Properties, Inc. UMH (2.6) 15.9 19.0 7.1
Residential Trade Street Residential, Inc. TSRE (2.5) 35.0 19.0 5.4
Residential Independence Realty Trust, Inc. IRT (1.8) 16.8 19.0 7.7
Residential American Campus Communities, Inc. ACC (1.8) 14.1 19.0 3.7
Residential UDR, Inc. UDR (1.2) 20.4 19.0 3.4
Residential Home Properties, Inc. HME (1.1) 14.4 19.0 4.5
Residential Apartment Investment and Management Company Class A AIV (1.0) 17.3 19.0 3.0
Residential Post Properties, Inc. PPS (0.9) 19.0 19.0 2.9
Residential Mid-America Apartment Communities, Inc. MAA (0.9) 13.9 19.0 4.1
Residential Equity LifeStyle Properties, Inc. ELS (0.9) 19.8 19.0 2.9
Residential Camden Property Trust CPT (0.9) 19.2 19.0 3.7
Residential Sun Communities, Inc. SUI (0.8) 31.4 19.0 4.1
Residential Associated Estates Realty Corporation AEC (0.7) 18.3 19.0 3.5
Residential Education Realty Trust, Inc. EDR (0.4) 16.5 19.0 4.2
Residential Equity Residential EQR (0.4) 21.6 19.0 2.9
Residential Preferred Apartment Communities, Inc. APTS (0.2) 11.1 19.0 6.3
Residential AvalonBay Communities, Inc. AVB 23.9 19.0 3.0
Residential Monogram Residential Trust Inc MORE 0.1 39.2 19.0 3.2
Residential Essex Property Trust, Inc. ESS 0.1 24.3 19.0 2.6
Residential Bluerock Residential Growth REIT, Inc. Class A BRG 0.7 8.5
Diversified Alexander’s, Inc. ALX (3.1) 21.9 17.1 3.2
Diversified OUTFRONT Media Inc. OUT (2.5) 12.7 17.1 4.7
Diversified Corrections Corporation of America CXW (2.4) 14.6 17.1 5.5
Diversified GEO Group Inc GEO (2.3) 15.0 17.1 5.9
Diversified W.P. Carey Inc. WPC (2.2) 16.5 17.1 5.8
Diversified American Assets Trust, Inc. AAT (2.2) 24.5 17.1 2.3
Diversified Investors Real Estate Trust IRET (1.9) 10.6 17.1 7.2
Diversified Whitestone REIT WSR (1.8) 17.6 17.1 7.4
Diversified Lexington Realty Trust LXP (1.8) 9.5 17.1 7.2
Diversified Armada Hoffler Properties, Inc. AHH (1.7) 12.9 17.1 6.6
Diversified Select Income REIT SIR (1.7) 9.5 17.1 8.3
Diversified Silver Bay Realty Trust Corp. SBY (1.1) 32.8 17.1 2.3
Diversified American Homes 4 Rent Class A AMH (0.9) 38.8 17.1 1.2
Diversified One Liberty Properties, Inc. OLP (0.8) 17.7 17.1 6.7
Diversified Iron Mountain, Inc. IRM (0.8) 32.9 17.1 5.2
Diversified Starwood Waypoint Residential Trust SWAY (0.7) 23.9 17.1 2.2
Diversified Gaming and Leisure Properties, Inc. WI GLPI (0.6) 16.0 17.1 6.0
Diversified Lamar Advertising Company Class A LAMR (0.6) 10.4 17.1 4.6
Diversified Vornado Realty Trust VNO (0.4) 21.9 17.1 2.4
Diversified Gramercy Property Trust Inc. GPT (0.3) 35.1 17.1 2.9
Diversified Washington Real Estate Investment Trust WRE 0.2 16.3 17.1 4.6
Diversified Winthrop Realty Trust FUR 0.2 4.0
Diversified Gladstone Land Corp. LAND 0.3 32.4 17.1 3.9
Diversified American Residential Properties, Inc. ARPI 0.8 116.6 17.1
Diversified EPR Properties EPR 1.0 13.4 17.1 6.1
Diversified NorthStar Realty Finance Corp. NRF 1.0 8.6
Timber Potlatch Corporation PCH (2.7) 19.4 27.1 3.9
Timber Weyerhaeuser Company WY (2.2) 25.4 27.1 3.7
Timber Plum Creek Timber Company, Inc. PCL (0.8) 27.1 27.1 4.2
Timber Rayonier Inc. RYN 94.1 27.1 3.8
Timber CatchMark Timber Trust, Inc. Class A CTT 0.9 57.3 27.1 4.4
Infrastructure CorEnergy Infrastructure Trust, Inc. CORR 0.7 21.8 21.8 7.5
Infrastructure American Tower Corporation AMT 1.1 24.0 21.8 1.7
Infrastructure Crown Castle International Corp CCI 1.4 18.3 21.8 3.8

Notes from the author

This is not a recommendation to buy or sell stocks. The highest-yield stocks are not necessarily the best choice for your portfolio. The purpose of this ranking is to shorten your stock analysis by enabling comparison of stock and sector performance. This is a snapshot of information available on 17 April 2015. Please perform your own due diligence before acting. The equity REITs are constituent companies of the FTSE NAREIT All REITs Index as of 31 March 2015. Companies whose equity market capitalization is lower than $100 million have been disregarded.Button



Signup button


Written by Heli Brecailo Disclaimer This newsletter is not engaged in rendering tax, accounting, or other professional advice through this publication. No statement in this issue is to be construed as a recommendation to buy or sell any security or other investment. Please do your own due diligence before making any investment decision. Some information presented in this publication has been obtained from third-party sources considered to be reliable. Sources are not required to make representations as to the accuracy of the information, however, and consequently the publisher cannot guarantee accuracy. Disclosure The author has no positions in any shares mentioned, and no plans to initiate any positions within the next 72 hours.​

Self-storage industry: On a need or want basis?

book-2869_1920

Being minimalist oriented, I must admit that I never understood the logic of the self-storage industry until I began to pay more attention to how my friends and family — myself partially included — treated their personal belongings.

A study done by the Self-Storage Association has revealed not only that 65 percent of all storage renters have a garage, but also that 47 and 33 percent of them have an attic and a basement respectively. In addition, almost half the renters in the United States have below-average household incomes.

The self-storage companies say that you must have storage if you:

  • are moving out and need an intermediary place for your possessions
  • are a member of the military who is being deployed overseas for at least six months
  • have things that require a climate-controlled environment
  • feel that your possessions will be safer in a nearby facility.

On the other hand, you can argue that you don’t want to throw your things away or sell them. You are not the kind to let things go so easily. Whoever has never personally struggled to get rid of that beloved sofa, kayak or model fighter aircraft collection (or in my case, the books, which are part of my self-esteem), let her/him cast the first stone. Raise your hand if you don’t know at least one person from your circle of friends who is a “hoarder at heart.” After all, for every year you pay in storage rentals, you could buy the stored stuff again and again and it would be new.

Whether you are motivated by need or want, the self-storage industry has been one of the most rapidly-growing sectors of the United States commercial real estate industry for about forty years.

Signup button

Below are some other insightful facts extracted from the Self-Storage Association’s website.

  • The top-5 self storage companies, including 4 real estate investment trusts (Public Storage, Extra Space, Sovran and CubeSmart) plus U-Haul (a public company / non-REIT), own, operate and/or manage some 5,600 self storage facilities, or about 11.5% of all US facilities.  Several public companies are now offering third-party management of facilities owned by other investors.  Hundreds of facilities are now being managed by the three public companies that have moved into this service area.
  • There is a total U.S. self storage space capacity of about 21 sq. ft. per American household.
  • About 13% of all self storage renters say they will rent for less than 3 months; 18% for 3-6 months; 18% for 7-12 months; 22% for 1-2 years; and 30% for more than 2 years.

Written by Heli Brecailo Disclaimer This newsletter is not engaged in rendering tax, accounting, or other professional advice through this publication. No statement in this issue is to be construed as a recommendation to buy or sell any security or other investment. Please do your own due diligence before making any investment decision. Some information presented in this publication has been obtained from third-party sources considered to be reliable. Sources are not required to make representations as to the accuracy of the information, however, and consequently the publisher cannot guarantee accuracy. Disclosure The author has no positions in any shares mentioned, and no plans to initiate any positions within the next 72 hours.​

U.S. REIT – Top Self-Storage Yielding Stock with Solid History & Fundamentals (Series 2 of 5)

I first discovered Sovran Self Storage (NYSE:SSS), or Uncle Bob’s Self Storage, as it is known commercially, during my weekly grocery visits in Somerville, MA. The location I noticed is a discreet brownstone, although their more recent sites have an office building look with bright signage. Since its foundation in 1985, Sovran has been serving millions of customers at 518 properties spread across 25 states.

The company has an impressive dividend distribution history of 19 years with only 2 dividend reductions – one in 2009 and another in 2010. Compared to the largest REITs in its category, Sovran has a relatively small market capitalization of US$3.3 billion (as of March 31, 2015), but for that same reason, it has greater potential for growth. For comparison purposes, Public Storage (NYSE:PSA) has over 2,200 storage facilities and a market capitalization of US$34 billion. Sovran has exhibited faster growth rates than Public Storage.

Performance

Sovran has an impressive projected growth profile for 2015: Dividend growth of 10 percent, Q4 dividend growth of 10 percent, and FFO per share growth of 17 percent. In addition, the number of facilities in operation rose from 478 to 518 with more planned for 2015.

Operationally, the company has been able to grow revenues both from existing facilities and by adding new facilities. Occupancy has increased slightly in 2014. The only caveat is 39 percent of location revenues are generated from facilities in Texas and Florida. Sovran has maintained a conservative debt profile with an investment grade credit rating from Fitch, BBB- Positive, and Standard & Poor’s, BBB- Positive. Debt maturities have been wisely staggered allowing for flexibility in future capital requirements.

Among its peers, Sovran’s 3.3 percent dividend yield is well above the 2.8 percent median. Nonetheless, REITs on average have yielded 3.5 percent. Also, the dividend payout ratio has been conservative (even when comparing to other sectors within the REIT space).

Valuation

Since 2011, year-end price-to-FFO has fluctuated between 17.5 and 21.3 for a median of 18.7. Projected FFO for 2015 is $4.79 and the year-end target stock price is $89.49. With the stock currently trading slightly above this level (Stock price on 13 April 2015 was $91.22), the market seems to have priced in 2015 growth.

 Metrics 2011 2012 2013 2014 2015P*
Dividends declared per common share, $ 1.80 1.80 2.02 2.72 3.00
Q4 Dividend, $ 0.45 0.45 0.53 0.68 0.75
Dividend payout ratio, percent 65 55 53 62
Dividend yield, percent 4.2 2.9 3.1 3.1 3.4
FFO per share, $ 2.43 3.14 3.72 4.09 4.79
FFO per share (Q4 only), $ 0.73 0.77 0.98 1.08
AFFO per share, $ 2.75 3.28 3.83 4.37
Debt to Enterprise Value, percent 33.4 26.4 22.7 21.1
Debt to EBITDA Ratio 5.3x 5.4x 3.9x 4.4x
Revenue Growth – Total, percent 9.9 16.4 16.8 19.2
Revenue Growth – Same Store, percent 4.2 6.3 7.7 7.5 5.5
NOI Growth – Same Store, percent 6.2 10.3 9.9 9.1 6.5
Occupancy – Same Store, percent 82 87 89 89
Share Price on 31 December, $ 42.67 62.10 65.17 87.22 89.49
P/FFO on 31 December, $ 17.6 19.8 17.5 21.3 18.7
 *2015P = 2015 Projection

Takeaway

Sovran is a solid growth stock whose 2015 projected growth has been priced in by the market.

The company will release Q1 2015 financial results on April 30 at 9am EST. Looking forward to it!


Signup button


Written by Heli Brecailo Disclaimer This newsletter is not engaged in rendering tax, accounting, or other professional advice through this publication. No statement in this issue is to be construed as a recommendation to buy or sell any security or other investment. Please do your own due diligence before making any investment decision. Some information presented in this publication has been obtained from third-party sources considered to be reliable. Sources are not required to make representations as to the accuracy of the information, however, and consequently the publisher cannot guarantee accuracy. Disclosure The author has no positions in any shares mentioned, and no plans to initiate any positions within the next 72 hours.​

U.S. – Top Yield Equity REITs – Find Price-To-FFO

Dividend yield is one of the main reasons why investors buy REIT stocks. Do not fall into the trap that higher yield means better stock. Funds from operations (FFO) is an important metric that measures cash generation. For REITs, FFO is a better indicator of performance than earnings.

Equity REITs Ranked by Dividend Yield

Total 169 Equity REITs

Share Price, Price-to-FFO, Dividend Yield – As of 10 April 2015

Sector’s Price-to-FFO – Median Price-to-FFO by sector

FFO in accordance with NAREIT definition from last available quarter (Mostly Q4-2014).

Some companies have not published FFO (That explains blank spaces).

# COMPANY TICKER PROPERTY SECTOR SHARE PRICE PRICE-TO-FFO SECTOR’S PRICE-TO-FFO DIV. YIELD
1 NorthStar Realty Finance Corp. NRF Diversified 18.31 8.7
2 Bluerock Residential Growth REIT, Inc. Class A BRG Residential 13.4 8.7
3 Gladstone Commercial Corporation GOOD Industrial/Office 18.5 7.1 16.1 8.1
4 Select Income REIT SIR Diversified 24.44 9.7 16.9 7.9
5 Government Properties Income Trust GOV Industrial/Office 22.49 10.0 16.1 7.6
6 Independence Realty Trust, Inc. IRT Residential 9.55 17.1 19.1 7.5
7 CorEnergy Infrastructure Trust, Inc. CORR Infrastructure 6.92 21.6 21.6 7.5
8 Senior Housing Properties Trust SNH Health Care 21.45 11.2 17.6 7.3
9 Whitestone REIT WSR Diversified 15.76 17.9 16.9 7.2
10 Investors Real Estate Trust IRET Diversified 7.33 10.8 16.9 7.1
11 City Office REIT, Inc. CIO Industrial/Office 13.27 18.4 16.1 7.1
12 Lexington Realty Trust LXP Diversified 9.68 9.7 16.9 7.0
13 UMH Properties, Inc. UMH Residential 10.44 16.3 19.1 6.9
14 One Liberty Properties, Inc. OLP Diversified 23.55 17.8 16.9 6.6
15 Chambers Street Properties CSG Industrial/Office 7.79 13.9 16.1 6.5
16 Armada Hoffler Properties, Inc. AHH Diversified 10.52 13.2 16.9 6.5
17 Preferred Apartment Communities, Inc. APTS Residential 11.14 11.1 19.1 6.3
18 EPR Properties EPR Diversified 58.5 13.3 16.9 6.2
19 Hospitality Properties Trust HPT Lodging/Resorts 31.97 9.2 16.3 6.1
20 Franklin Street Properties Corp. FSP Industrial/Office 12.55 11.6 16.1 6.1
21 STAG Industrial, Inc. STAG Industrial/Office 22.33 16.4 16.1 6.0
22 Gaming and Leisure Properties, Inc. WI GLPI Diversified 36.7 16.1 16.9 5.9
23 Medical Properties Trust, Inc. MPW Health Care 14.93 24.9 17.6 5.9
24 GEO Group Inc GEO Diversified 43.07 15.4 16.9 5.8
25 Spirit Realty Capital, Inc. SRC Retail 11.84 14.8 18.6 5.7
26 W.P. Carey Inc. WPC Diversified 66.92 16.9 16.9 5.7
27 Omega Healthcare Investors, Inc. OHI Health Care 38.86 14.3 17.6 5.6
28 CBL & Associates Properties, Inc. CBL Retail 19.1 5.8 18.6 5.5
29 Monmouth Real Estate Investment Corporation Class A MNR Industrial/Office 10.83 19.3 16.1 5.5
30 New Senior Investment Group Inc SNR Health Care 16.62 18.1 17.6 5.5
31 Agree Realty Corporation ADC Retail 32.65 14.3 18.6 5.5
32 Inland Real Estate Corporation IRC Retail 10.57 10.6 18.6 5.4
33 Corrections Corporation of America CXW Diversified 40.08 15.0 16.9 5.4
34 Liberty Property Trust LPT Industrial/Office 35.41 13.2 16.1 5.4
35 HCP, Inc. HCP Health Care 42.64 15.2 17.6 5.3
36 Trade Street Residential, Inc. TSRE Residential 7.18 35.9 19.1 5.3
37 First Potomac Realty Trust FPO Industrial/Office 11.34 10.5 16.1 5.3
38 Digital Realty Trust, Inc. DLR Diversified 65.22 11.6 16.9 5.2
39 DuPont Fabros Technology, Inc. DFT Diversified 32.43 14.0 16.9 5.2
40 Physicians Realty Trust DOC Health Care 17.53 23.1 17.6 5.1
41 Iron Mountain, Inc. IRM Diversified 37.17 33.2 16.9 5.1
42 Ashford Hospitality Trust, Inc. AHT Lodging/Resorts 9.59 15.0 16.3 5.0
43 Getty Realty Corp. GTY Retail 17.72 11.7 18.6 5.0
44 Sabra Health Care REIT, Inc. SBRA Health Care 31.78 14.7 17.6 4.9
45 BioMed Realty Trust, Inc. BMR Industrial/Office 21.24 15.2 16.1 4.9
46 National Health Investors, Inc. NHI Health Care 69.8 16.3 17.6 4.9
47 CareTrust REIT Inc CTRE Health Care 13.47 14.0 17.6 4.8
48 Universal Health Realty Income Trust UHT Health Care 53.81 18.4 17.6 4.7
49 Urstadt Biddle Properties Inc. Class A UBA Retail 21.76 22.7 18.6 4.7
50 Piedmont Office Realty Trust, Inc. Class A PDM Industrial/Office 18.25 11.4 16.1 4.6
51 Washington Real Estate Investment Trust WRE Diversified 26.11 16.3 16.9 4.6
52 Realty Income Corporation O Retail 49.51 19.3 18.6 4.6
53 OUTFRONT Media Inc. OUT Diversified 29.63 13.0 16.9 4.6
54 Excel Trust, Inc EXL Retail 15.82 26.4 18.6 4.6
55 Lamar Advertising Company Class A LAMR Diversified 60 10.5 16.9 4.5
56 LTC Properties, Inc. LTC Health Care 45.21 17.7 17.6 4.5
57 Columbia Property Trust, Inc. CXP Industrial/Office 26.62 13.6 16.1 4.5
58 Home Properties, Inc. HME Residential 67.68 14.6 19.1 4.5
59 New York REIT, Inc. NYRT Industrial/Office 10.27 11.2 16.1 4.5
60 Healthcare Realty Trust Incorporated HR Health Care 26.82 17.6 17.6 4.5
61 CatchMark Timber Trust, Inc. Class A CTT Timber 11.36 56.8 27.3 4.4
62 Chesapeake Lodging Trust CHSP Lodging/Resorts 31.88 21.0 16.3 4.4
63 Parkway Properties, Inc. PKY Industrial/Office 17.1 13.8 16.1 4.4
64 Ramco-Gershenson Properties Trust RPT Retail 18.34 91.7 18.6 4.4
65 Health Care REIT, Inc. HCN Health Care 76.19 22.1 17.6 4.3
66 Hersha Hospitality Trust Class A HT Lodging/Resorts 6.48 13.5 16.3 4.3
67 Ryman Hospitality Properties, Inc. RHP Lodging/Resorts 60.52 8.6 16.3 4.3
68 Healthcare Trust of America, Inc. Class A HTA Health Care 27.08 20.5 17.6 4.3
69 STORE Capital Corporation STOR Retail 23.36 18.3 18.6 4.3
70 RLJ Lodging Trust RLJ Lodging/Resorts 30.93 14.6 16.3 4.3
71 Retail Properties of America, Inc. Class A RPAI Retail 15.85 15.2 18.6 4.2
72 Education Realty Trust, Inc. EDR Residential 34.48 16.6 19.1 4.2
73 National Retail Properties, Inc. NNN Retail 40.68 18.2 18.6 4.1
74 Plum Creek Timber Company, Inc. PCL Timber 42.63 27.3 27.3 4.1
75 Sun Communities, Inc. SUI Residential 63.28 31.6 19.1 4.1
76 Chatham Lodging Trust CLDT Lodging/Resorts 29.4 32.0 16.3 4.1
77 Mid-America Apartment Communities, Inc. MAA Residential 75.67 14.0 19.1 4.1
78 Xenia Hotels & Resorts, Inc. XHR Lodging/Resorts 22.84 4.0
79 Host Hotels & Resorts, Inc. HST Lodging/Resorts 19.93 12.5 16.3 4.0
80 Winthrop Realty Trust FUR Diversified 16.24 4.0
81 CyrusOne, Inc. CONE Diversified 31.62 29.3 16.9 4.0
82 LaSalle Hotel Properties LHO Lodging/Resorts 37.83 16.3 16.3 4.0
83 Weingarten Realty Investors WRI Retail 34.86 17.1 18.6 4.0
84 Brandywine Realty Trust BDN Industrial/Office 15.21 12.7 16.1 3.9
85 Rouse Properties, Inc. RSE Retail 18.36 12.8 18.6 3.9
86 Kite Realty Group Trust KRG Retail 27.87 13.9 18.6 3.9
87 Crown Castle International Corp CCI Infrastructure 84.69 18.1 21.6 3.9
88 Retail Opportunity Investments Corp. ROIC Retail 17.71 21.1 18.6 3.8
89 Potlatch Corporation PCH Timber 39.14 20.0 27.3 3.8
90 Corporate Office Properties Trust OFC Industrial/Office 28.92 21.3 16.1 3.8
91 Pennsylvania Real Estate Investment Trust PEI Retail 22.12 9.4 18.6 3.8
92 Rayonier Inc. RYN Timber 26.35 94.1 27.3 3.8
93 EastGroup Properties, Inc. EGP Industrial/Office 60.13 16.5 16.1 3.8
94 DDR Corp. DDR Retail 18.3 20.8 18.6 3.8
95 Highwoods Properties, Inc. HIW Industrial/Office 45.32 15.3 16.1 3.8
96 Kimco Realty Corporation KIM Retail 25.91 17.0 18.6 3.7
97 Sotherly Hotels Inc. SOHO Lodging/Resorts 7.63 10.6 16.3 3.7
98 Camden Property Trust CPT Residential 76.63 19.4 19.1 3.7
99 American Campus Communities, Inc. ACC Residential 41.83 14.3 19.1 3.6
100 Weyerhaeuser Company WY Timber 32.25 26.0 27.3 3.6
101 DiamondRock Hospitality Company DRH Lodging/Resorts 13.95 18.4 16.3 3.6
102 Brixmor Property Group, Inc. BRX Retail 25.22 14.7 18.6 3.6
103 QTS Realty Trust, Inc. Class A QTS Diversified 36.5 16.9 16.9 3.5
104 Summit Hotel Properties, Inc., INN Lodging/Resorts 13.52 17.8 16.3 3.5
105 Gladstone Land Corp. LAND Diversified 12.16 32.3 16.9 3.5
106 Associated Estates Realty Corporation AEC Residential 24.37 18.5 19.1 3.4
107 Prologis, Inc. PLD Industrial/Office 42.49 20.8 16.1 3.4
108 Equity One, Inc. EQY Retail 26.09 26.1 18.6 3.4
109 UDR, Inc. UDR Residential 32.99 20.6 19.1 3.4
110 Urban Edge Properties UE Retail 23.99 3.3
111 CoreSite Realty Corporation COR Diversified 50.52 20.7 16.9 3.3
112 DCT Industrial Trust Inc. DCT Industrial/Office 33.76 18.3 16.1 3.3
113 Duke Realty Corporation DRE Industrial/Office 20.54 25.7 16.1 3.3
114 Tanger Factory Outlet Centers, Inc. SKT Retail 34.73 21.7 18.6 3.3
115 Sovran Self Storage, Inc. SSS Self Storage 91.95 21.3 22.4 3.3
116 Saul Centers, Inc. BFS Retail 53.79 21.7 18.6 3.2
117 Mack-Cali Realty Corporation CLI Industrial/Office 18.77 13.8 16.1 3.2
118 Macerich Company MAC Retail 81.35 20.5 18.6 3.2
119 Monogram Residential Trust Inc MORE Residential 9.4 39.2 19.1 3.2
120 Cousins Properties Incorporated CUZ Industrial/Office 10.1 10.5 16.1 3.2
121 Ventas, Inc. VTR Health Care 74.05 16.0 17.6 3.1
122 Alexandria Real Estate Equities, Inc. ARE Industrial/Office 95.01 27.6 16.1 3.1
123 Alexander’s, Inc. ALX Diversified 451.98 22.6 16.9 3.1
124 Rexford Industrial Realty, Inc. REXR Industrial/Office 15.91 20.9 16.1 3.0
125 Taubman Centers, Inc. TCO Retail 74.93 34.7 18.6 3.0
126 AvalonBay Communities, Inc. AVB Residential 168.31 23.9 19.1 3.0
127 Apartment Investment and Management Company Class A AIV Residential 37.83 17.5 19.1 3.0
128 Simon Property Group, Inc. SPG Retail 191.27 19.4 18.6 2.9
129 Regency Centers Corporation REG Retail 66.35 21.3 18.6 2.9
130 Equity Residential EQR Residential 75.62 21.7 19.1 2.9
131 Public Storage PSA Self Storage 193.69 22.3 22.4 2.9
132 Acadia Realty Trust AKR Retail 33.47 27.9 18.6 2.9
133 Post Properties, Inc. PPS Residential 55.87 19.1 19.1 2.9
134 Gramercy Property Trust Inc. GPT Diversified 28.14 35.2 16.9 2.8
135 Equity LifeStyle Properties, Inc. ELS Residential 52.89 20.0 19.1 2.8
136 Equinix, Inc. EQIX Diversified 239.65 2.8
137 Douglas Emmett, Inc DEI Industrial/Office 29.85 19.1 16.1 2.8
138 Terreno Realty Corporation TRNO Industrial/Office 22.76 28.5 16.1 2.8
139 Extra Space Storage Inc. EXR Self Storage 67.08 27.0 22.4 2.8
140 Pebblebrook Hotel Trust PEB Lodging/Resorts 44.78 26.0 16.3 2.8
141 WP GLIMCHER, Inc WPG Retail 16.01 8.7 18.6 2.7
142 CubeSmart CUBE Self Storage 23.41 22.5 22.4 2.7
143 Cedar Realty Trust, Inc. CDR Retail 7.54 15.7 18.6 2.7
144 Essex Property Trust, Inc. ESS Residential 222.19 24.3 19.1 2.6
145 First Industrial Realty Trust, Inc. FR Industrial/Office 20.25 15.8 16.1 2.5
146 PS Business Parks, Inc. PSB Industrial/Office 80.81 17.7 16.1 2.5
147 Federal Realty Investment Trust FRT Retail 142.42 31.5 18.6 2.4
148 General Growth Properties, Inc. GGP Retail 28.81 19.0 18.6 2.4
149 Vornado Realty Trust VNO Diversified 107.42 22.0 16.9 2.3
150 Silver Bay Realty Trust Corp. SBY Diversified 15.91 33.1 16.9 2.3
151 American Assets Trust, Inc. AAT Diversified 42.1 25.1 16.9 2.2
152 Starwood Waypoint Residential Trust SWAY Diversified 25.98 24.1 16.9 2.2
153 Paramount Group, Inc. PGRE Industrial/Office 18.67 12.0 16.1 2.0
154 Boston Properties, Inc. BXP Industrial/Office 137.58 27.3 16.1 1.9
155 SL Green Realty Corp. SLG Industrial/Office 127.85 22.4 16.1 1.9
156 Kilroy Realty Corporation KRC Industrial/Office 75.06 24.1 16.1 1.9
157 Empire State Realty Trust, Inc. Class A ESRT Industrial/Office 18.59 21.1 16.1 1.8
158 American Tower Corporation AMT Infrastructure 95.07 23.8 21.6 1.8
159 Hudson Pacific Properties, Inc. HPP Industrial/Office 31.97 33.3 16.1 1.6
160 FelCor Lodging Trust Incorporated FCH Lodging/Resorts 11.33 25.8 16.3 1.4
161 Ashford Hospitality Prime, Inc. AHP Lodging/Resorts 16.2 19.3 16.3 1.2
162 Sunstone Hotel Investors, Inc. SHO Lodging/Resorts 16.31 15.7 16.3 1.2
163 American Homes 4 Rent Class A AMH Diversified 17.23 39.2 16.9 1.2
164 American Residential Properties, Inc. ARPI Diversified 18.5 115.6 16.9
165 Easterly Government Properties, Inc. DEA Industrial/Office 16.22
166 Equity Commonwealth EQC Industrial/Office 26.2 13.9 16.1
167 Strategic Hotels & Resorts, Inc. BEE Lodging/Resorts 12.2 21.8 16.3
168 Campus Crest Communities, Inc. CCG Residential 6.85
169 American Realty Capital Properties, Inc. Class A ARCP Retail 9.73

Notes from the author

This is not a recommendation to buy or sell stocks. The highest-yield stocks are not necessarily the best choice for your portfolio. The purpose of this ranking is to shorten your stock analysis by enabling comparison of stock and sector performance. This is a snapshot of information available on 10 April 2015. Please perform your own due diligence before acting. The equity REITs are constituent companies of the FTSE NAREIT All REITs Index as of 31 March 2015. Companies whose equity market capitalization is lower than $100 million have been disregarded.Button



Signup button


Written by Heli Brecailo Disclaimer This newsletter is not engaged in rendering tax, accounting, or other professional advice through this publication. No statement in this issue is to be construed as a recommendation to buy or sell any security or other investment. Please do your own due diligence before making any investment decision. Some information presented in this publication has been obtained from third-party sources considered to be reliable. Sources are not required to make representations as to the accuracy of the information, however, and consequently the publisher cannot guarantee accuracy. Disclosure The author has no positions in any shares mentioned, and no plans to initiate any positions within the next 72 hours.​

How did these U. S. REIT stocks manage so well in Q1-15?

Stokado_Self_Storage1

Yes, you can cry over spilled milk. You should know that, on the whole, REITs did quite well during the first quarter of 2015; what you probably don’t know is that a smaller subset — the self-storage REITs — did even better still, generating a return of 8.8 percent, as opposed to the total returns of several indicators, including:

• S & P 500 — 0.95 percent

• MSCI US REIT — 4.8 percent

• FTSE NAREIT All REITs Index — 4.0 percent

Self-storage has developed into a niche market within the realm of commercial real estate. Its market concentration is low, with only thirteen percent of the facilities controlled by the top ten players and the remainder managed by numerous small businesses.

Self-Storage REITs

The FTSE NAREIT All REITs Index includes four self-storage REITs: Sovran Self Storage, Inc. (NYSE:SSS), Public Storage (NYSE:PSA), Extra Space Storage Inc. (NYSE:EXR), and CubeSmart (NYSE:CUBE).

The four companies share many consecutive years of strong operational performance. As a result of a combination of steady same-store growth and store expansion, their overall revenues have grown by two digits, and net operational income has grown slightly higher than revenues, a sign of how strong their operational efficiency is.

On the cash flow front, funds from operations (FFO) and cash dividends have increased over time and, according to the guidance of management, it is unlikely they will stop in 2015. Last but not least, expansion has been carried out wisely and a healthy debt profile maintained — the company has held its debt-to-enterprise level within reasonable bounds.

Demand drivers

On the macro level, as long as U.S. demographics and the current state of the economy help increase the number of personal possessions which thus need to be stored outside the owner’s residence, self-storage will be in demand. Some believe baby boomers will strengthen this trend by moving into smaller houses. As a result, future growth prospects look positive.

Since convenience is an important reason for choosing a facility (those near home or office are preferred), other drivers of demand have been associated with local market conditions like population growth and average household size and income. Competition and excess supply can also affect occupancy levels and rental rates.

Mixture of self-storage and U-Haul with an office feel

The self-storage concept has quickly evolved into a combination of self-storage and U-Haul with an office “feel.” Operators have begun focusing on generating income by offering additional services like truck rentals, moving and packing supplies, and tenant insurance. To further meet customer expectations, they have adopted innovative products and services, including online and automated kiosk rentals, climate-controlled and wine storage, 24-hour accessibility, customer service call center access and after-hours storage. Self-storage has changed radically.

Signup button

Click here to check out self-storage performance in the first quarter of 2015.


Written by Heli Brecailo

Disclaimer This newsletter is not engaged in rendering tax, accounting, or other professional advice through this publication. No statement in this issue is to be construed as a recommendation to buy or sell any security or other investment. Please do your own due diligence before making any investment decision. Some information presented in this publication has been obtained from third-party sources considered to be reliable. Sources are not required to make representations as to the accuracy of the information, however, and consequently the publisher cannot guarantee accuracy. Disclosure The author has no positions in any shares mentioned, and no plans to initiate any positions within the next 72 hours.​

U.S. REIT – First Quarter 2015 Performance

Release Date: 05 April 2015 (Extra Edition)

Total 170 Equity REITs Ranked by First Quarter 2015 Performance

# Q1-15 Ret – Ranking by First Quarter 2015 Return

# Div Yield – Ranking by Dividend Yield

Share Price, Dividend Yield – As of 02 April 2015


Property Sector: Self Storage

Sector’s Median First Quarter 2015 Return: 8.6

Sector’s Median Dividend Yield: 2.8

Q1-15 RET # DIV YIELD # COMPANY TICKER RETURN MAR-15 RETURN Q1-15 SHARE PRICE DIV. YIELD
1 3 Extra Space Storage Inc. EXR 2.7 15.2 67.87 2.8
2 4 CubeSmart CUBE 4.1 9.4 24.01 2.7
3 1 Sovran Self Storage, Inc. SSS 2.1 7.7 93.95 3.2
4 2 Public Storage PSA (0.0) 6.6 197.31 2.8

Property Sector: Residential

Sector’s Median First Quarter 2015 Return: 5.8

Sector’s Median Dividend Yield: 3.5

Q1-15 RET # DIV YIELD # COMPANY TICKER RETURN MAR-15 RETURN Q1-15 SHARE PRICE DIV. YIELD
1 4 Preferred Apartment Communities, Inc. APTS 5.8 18.9 10.68 6.6
2 20 Essex Property Trust, Inc. ESS 3.4 11.3 229.15 2.5
3 13 UDR, Inc. UDR 6.5 10.4 33.98 3.3
4 9 Sun Communities, Inc. SUI (1.3) 10.4 66.40 3.9
5 17 Equity Residential EQR 1.1 8.4 78.31 2.8
6 1 Bluerock Residential Growth REIT, Inc. Class A BRG 1.4 7.2 13.45 8.6
7 16 AvalonBay Communities, Inc. AVB 3.5 6.6 174.74 2.9
8 19 Equity LifeStyle Properties, Inc. ELS 2.0 6.6 55.14 2.7
9 12 Associated Estates Realty Corporation AEC 3.0 6.3 24.78 3.4
10 15 Apartment Investment and Management Company Class A AIV 4.5 5.9 38.96 2.9
11 10 Camden Property Trust CPT 7.3 5.8 78.52 3.6
12 6 Home Properties, Inc. HME 3.8 5.6 69.97 4.3
13 3 UMH Properties, Inc. UMH 6.4 5.4 10.24 7.0
14 11 American Campus Communities, Inc. ACC 3.9 3.7 43.36 3.5
15 8 Mid-America Apartment Communities, Inc. MAA 6.6 3.5 77.97 4.0
16 2 Independence Realty Trust, Inc. IRT 2.0 1.9 9.44 7.6
17 14 Monogram Residential Trust Inc MORE 1.2 0.6 9.42 3.2
18 21 Campus Crest Communities, Inc. CCG (8.1) (2.1) 6.85
19 18 Post Properties, Inc. PPS 0.1 (3.1) 56.90 2.8
20 7 Education Realty Trust, Inc. EDR 0.9 (3.3) 34.94 4.1
21 5 Trade Street Residential, Inc. TSRE (8.4) (6.9) 7.13 5.3

Property Sector: Infrastructure

Sector’s Median First Quarter 2015 Return: 4.9

Sector’s Median Dividend Yield: 3.9

Q1-15 RET # DIV YIELD # COMPANY TICKER RETURN MAR-15 RETURN Q1-15 SHARE PRICE DIV. YIELD
1 1 CorEnergy Infrastructure Trust, Inc. CORR 3.1 6.9 6.98 7.4
2 2 Crown Castle International Corp CCI (4.4) 4.9 84.15 3.9
3 3 American Tower Corporation AMT (5.0) (4.8) 96.78 1.7

Property Sector: Health Care

Sector’s Median First Quarter 2015 Return: 3.6

Sector’s Median Dividend Yield: 4.6

Q1-15 RET # DIV YIELD # COMPANY TICKER RETURN MAR-15 RETURN Q1-15 SHARE PRICE DIV. YIELD
1 9 Universal Health Realty Income Trust UHT 10.7 16.9 55.86 4.5
2 10 CareTrust REIT Inc CTRE 6.7 10.0 14.25 4.5
3 8 Sabra Health Care REIT, Inc. SBRA 1.4 9.2 33.35 4.7
4 2 Medical Properties Trust, Inc. MPW (2.6) 7.0 14.97 5.9
5 11 LTC Properties, Inc. LTC 3.1 6.6 46.09 4.4
6 6 Physicians Realty Trust DOC 7.1 6.1 17.62 5.1
7 15 Aviv REIT, Inc. AVIV 1.4 5.9 36.75 3.9
8 4 Omega Healthcare Investors, Inc. OHI 1.3 3.8 41.48 5.2
9 14 Healthcare Trust of America, Inc. Class A HTA 0.4 3.4 28.18 4.1
10 13 Health Care REIT, Inc. HCN 0.3 2.2 77.83 4.2
11 16 Ventas, Inc. VTR (1.9) 1.8 73.23 4.3
12 12 Healthcare Realty Trust Incorporated HR (2.7) 1.7 27.95 4.3
13 7 National Health Investors, Inc. NHI (0.2) 1.5 71.57 4.8
14 3 New Senior Investment Group Inc SNR (1.2) 1.1 16.72 5.5
15 1 Senior Housing Properties Trust SNH (0.7) 0.4 22.14 7.0
16 5 HCP, Inc. HCP 2.0 (1.9) 43.99 5.1

Property Sector: Industrial/Office

Sector’s Median First Quarter 2015 Return: 3.4

Sector’s Median Dividend Yield: 3.3

Q1-15 RET # DIV YIELD # COMPANY TICKER RETURN MAR-15 RETURN Q1-15 SHARE PRICE DIV. YIELD
1 26 Terreno Realty Corporation TRNO 3.4 10.5 22.87 2.8
2 23 Alexandria Real Estate Equities, Inc. ARE 2.2 10.5 96.94 3.1
3 35 Hudson Pacific Properties, Inc. HPP 3.8 10.4 33.62 1.5
4 33 Kilroy Realty Corporation KRC 3.0 10.3 76.66 1.8
5 32 Boston Properties, Inc. BXP 2.2 9.2 140.93 1.8
6 1 Gladstone Commercial Corporation GOOD 2.4 8.4 18.65 8.0
7 31 SL Green Realty Corp. SLG 1.1 7.9 129.88 1.8
8 22 Duke Realty Corporation DRE 1.9 7.8 22.04 3.1
9 34 Empire State Realty Trust, Inc. Class A ESRT 6.3 7.0 18.84 1.8
10 12 Columbia Property Trust, Inc. CXP 4.4 6.6 27.23 4.4
11 10 BioMed Realty Trust, Inc. BMR 1.9 5.2 22.55 4.6
12 27 Douglas Emmett, Inc DEI 3.3 5.0 30.32 2.8
13 5 Franklin Street Properties Corp. FSP 1.5 4.5 12.92 5.9
14 28 PS Business Parks, Inc. PSB (0.2) 4.4 83.27 2.4
15 29 First Industrial Realty Trust, Inc. FR 0.7 4.2 21.38 2.4
16 30 Paramount Group, Inc. PGRE 5.2 3.8 19.32 2.0
17 17 Corporate Office Properties Trust OFC (0.1) 3.6 29.53 3.7
18 36 Equity Commonwealth EQC 0.4 3.4 26.61
19 18 Highwoods Properties, Inc. HIW 0.4 3.4 46.29 3.7
20 19 Prologis, Inc. PLD 2.0 1.2 43.59 3.3
21 21 Mack-Cali Realty Corporation CLI 2.5 1.2 19.30 3.1
22 24 Rexford Industrial Realty, Inc. REXR (1.4) 0.6 15.73 3.1
23 7 Monmouth Real Estate Investment Corporation Class A MNR (1.4) 0.4 11.20 5.4
24 15 Brandywine Realty Trust BDN 0.8 15.92 3.8
25 3 City Office REIT, Inc. CIO 1.3 (0.5) 13.05 7.2
26 2 Government Properties Income Trust GOV (2.3) (0.7) 22.92 7.5
27 13 New York REIT, Inc. NYRT 0.9 (1.0) 10.53 4.4
28 11 Piedmont Office Realty Trust, Inc. Class A PDM 1.5 (1.2) 18.83 4.5
29 37 Easterly Government Properties, Inc. DEA (0.3) (1.2) 16.23
30 4 Chambers Street Properties CSG (3.8) (2.2) 7.92 6.4
31 20 DCT Industrial Trust Inc. DCT (3.9) (2.8) 34.98 3.2
32 9 First Potomac Realty Trust FPO (0.5) (3.8) 11.93 5.0
33 6 STAG Industrial, Inc. STAG (5.7) (4.0) 23.58 5.7
34 16 EastGroup Properties, Inc. EGP (4.5) (5.0) 61.05 3.7
35 8 Liberty Property Trust LPT (4.1) (5.1) 36.27 5.2
36 14 Parkway Properties, Inc. PKY (1.5) (5.7) 17.61 4.3
37 25 Cousins Properties Incorporated CUZ (1.2) (7.2) 10.50 3.0


Property Sector: Diversified

Sector’s Median First Quarter 2015 Return: 3.1

Sector’s Median Dividend Yield: 4.6

Q1-15 RET # DIV YIELD # COMPANY TICKER RETURN MAR-15 RETURN Q1-15 SHARE PRICE DIV. YIELD
1 9 Gaming and Leisure Properties, Inc. WI GLPI 8.9 25.7 37.25 5.9
2 23 CoreSite Realty Corporation COR 2.6 24.7 50.41 3.3
3 20 CyrusOne, Inc. CONE 4.7 13.0 31.61 4.0
4 21 Gladstone Land Corp. LAND 1.2 12.6 12.10 3.5
5 7 Armada Hoffler Properties, Inc. AHH (1.3) 12.3 10.58 6.4
6 16 OUTFRONT Media Inc. OUT (0.1) 11.5 29.75 4.6
7 12 Corrections Corporation of America CXW 0.9 10.8 40.36 5.4
8 17 Lamar Advertising Company Class A LAMR 2.0 10.5 59.58 4.6
9 30 American Assets Trust, Inc. AAT 5.5 8.7 43.24 2.2
10 10 GEO Group Inc GEO 1.4 8.4 44.46 5.6
11 22 QTS Realty Trust, Inc. Class A QTS 1.7 7.6 37.06 3.5
12 3 Whitestone REIT WSR 0.6 5.1 15.96 7.1
13 19 Winthrop Realty Trust FUR 1.4 4.7 16.20 4.0
14 24 Alexander’s, Inc. ALX 3.7 4.4 452.99 3.1
15 8 EPR Properties EPR (1.6) 4.2 60.72 6.0
16 6 One Liberty Properties, Inc. OLP 3.1 3.2 24.21 6.4
17 1 NorthStar Realty Finance Corp. NRF (5.7) 3.1 18.22 8.8
18 25 Equinix, Inc. EQIX 3.9 2.7 235.60 2.9
19 32 American Residential Properties, Inc. ARPI 3.7 2.4 18.42
20 2 Select Income REIT SIR 1.2 2.4 25.04 7.7
21 26 Gramercy Property Trust Inc. GPT (0.5) 1.7 28.45 2.8
22 18 Washington Real Estate Investment Trust WRE (2.5) (0.1) 27.88 4.3
23 13 Digital Realty Trust, Inc. DLR (0.6) (0.5) 65.84 5.2
24 15 DuPont Fabros Technology, Inc. DFT 4.4 (1.7) 32.93 5.1
25 29 Starwood Waypoint Residential Trust SWAY 2.7 (2.0) 25.80 2.2
26 28 Silver Bay Realty Trust Corp. SBY (2.4) 16.16 2.2
27 31 American Homes 4 Rent Class A AMH (0.8) (2.8) 16.69 1.2
28 11 W.P. Carey Inc. WPC (0.8) (3.0) 68.72 5.5
29 27 Vornado Realty Trust VNO 1.8 (4.9) 111.21 2.3
30 14 Iron Mountain, Inc. IRM (0.7) (5.6) 37.15 5.1
31 4 Investors Real Estate Trust IRET (2.1) (8.2) 7.40 7.0
32 5 Lexington Realty Trust LXP (9.2) (10.5) 10.05 6.8

Property Sector: Retail

Sector’s Median First Quarter 2015 Return: 2.7

Sector’s Median Dividend Yield: 3.6

Q1-15 RET # DIV YIELD # COMPANY TICKER RETURN MAR-15 RETURN Q1-15 SHARE PRICE DIV. YIELD
1 32 Federal Realty Investment Trust FRT 3.6 10.3 148.45 2.3
2 16 Retail Opportunity Investments Corp. ROIC 9.3 9.0 18.21 3.7
3 28 Acadia Realty Trust AKR 2.1 8.9 34.87 2.8
4 34 American Realty Capital Properties, Inc. Class A ARCP 0.4 8.8 9.92
5 8 Realty Income Corporation O 3.1 8.2 52.05 4.4
6 9 STORE Capital Corporation STOR 3.1 8.1 23.50 4.3
7 27 Simon Property Group, Inc. SPG 2.8 7.4 199.36 2.8
8 20 Brixmor Property Group, Inc. BRX 4.5 6.9 26.44 3.4
9 19 Kimco Realty Corporation KIM 2.2 6.8 26.61 3.6
10 26 Regency Centers Corporation REG 3.7 6.7 68.41 2.8
11 2 Agree Realty Corporation ADC 0.4 6.0 33.23 5.4
12 7 Urstadt Biddle Properties Inc. Class A UBA 1.5 5.4 22.70 4.5
13 22 Equity One, Inc. EQY (0.3) 5.2 26.93 3.3
14 33 General Growth Properties, Inc. GGP 1.9 5.0 30.04 2.3
15 5 Excel Trust, Inc EXL 2.3 4.7 14.06 5.1
16 12 National Retail Properties, Inc. NNN 1.8 4.1 41.60 4.0
17 14 Weingarten Realty Investors WRI (0.7) 3.0 36.03 3.8
18 15 Rouse Properties, Inc. RSE 9.7 2.4 19.22 3.7
19 31 Cedar Realty Trust, Inc. CDR 0.1 2.0 7.56 2.6
20 3 CBL & Associates Properties, Inc. CBL (1.1) 2.0 19.79 5.4
21 1 Spirit Realty Capital, Inc. SRC (1.4) 1.6 12.30 5.5
22 17 DDR Corp. DDR (1.7) 1.4 18.85 3.7
23 23 Macerich Company MAC 0.8 1.1 80.66 3.2
24 25 Taubman Centers, Inc. TCO 6.6 0.9 76.95 2.9
25 24 Saul Centers, Inc. BFS 6.2 0.0 56.92 3.0
26 6 Getty Realty Corp. GTY 0.9 (0.1) 18.27 4.8
27 21 Urban Edge Properties UE (1.0) (0.1) 23.64 3.4
28 10 Ramco-Gershenson Properties Trust RPT (0.6) (0.7) 18.84 4.2
29 18 Pennsylvania Real Estate Investment Trust PEI 2.0 (1.0) 23.08 3.6
30 13 Kite Realty Group Trust KRG (0.5) (2.0) 28.18 3.9
31 4 Inland Real Estate Corporation IRC (0.1) (2.4) 10.79 5.3
32 29 WP GLIMCHER, Inc WPG (4.0) (3.4) 16.40 2.7
33 11 Retail Properties of America, Inc. Class A RPAI 1.3 (4.0) 16.10 4.1
34 30 Tanger Factory Outlet Centers, Inc. SKT (0.8) (4.8) 35.85 2.7

Property Sector: Lodging/Resorts

Sector’s Median First Quarter 2015 Return: (0.7)

Sector’s Median Dividend Yield: 3.9

Q1-15 RET # DIV YIELD # COMPANY TICKER RETURN MAR-15 RETURN Q1-15 SHARE PRICE DIV. YIELD
1 4 Ryman Hospitality Properties, Inc. RHP 1.3 15.5 62.32 4.2
2 13 Summit Hotel Properties, Inc., INN 7.2 13.1 13.98 3.4
3 8 Xenia Hotels & Resorts, Inc. XHR 8.0 8.3 23.21 4.0
4 1 Hospitality Properties Trust HPT 7.1 6.4 33.46 5.9
5 15 FelCor Lodging Trust Incorporated FCH 6.7 6.2 11.94 1.3
6 14 Pebblebrook Hotel Trust PEB (4.1) 2.1 46.33 2.7
7 7 Chatham Lodging Trust CLDT 1.3 1.5 29.67 4.0
8 11 Sotherly Hotels Inc. SOHO 0.1 1.5 7.74 3.6
9 16 Sunstone Hotel Investors, Inc. SHO (4.5) 1.0 16.99 1.2
10 17 Ashford Hospitality Prime, Inc. AHP 3.1 (2.3) 17.09 1.2
11 10 LaSalle Hotel Properties LHO (0.2) (4.0) 39.17 3.8
12 12 DiamondRock Hospitality Company DRH (2.4) (5.0) 14.32 3.5
13 18 Strategic Hotels & Resorts, Inc. BEE (5.3) (6.0) 12.54
14 5 RLJ Lodging Trust RLJ (1.6) (6.6) 31.76 4.2
15 3 Hersha Hospitality Trust Class A HT (3.6) (8.0) 6.55 4.3
16 2 Ashford Hospitality Trust, Inc. AHT (9.7) (8.2) 9.86 4.9
17 6 Chesapeake Lodging Trust CHSP (4.9) (9.1) 33.87 4.1
18 9 Host Hotels & Resorts, Inc. HST (3.9) (15.1) 20.49 3.9

Property Sector: Timber

Sector’s Median First Quarter 2015 Return: (3.5)

Sector’s Median Dividend Yield: 3.8

Q1-15 RET # DIV YIELD # COMPANY TICKER RETURN MAR-15 RETURN Q1-15 SHARE PRICE DIV. YIELD
1 1 CatchMark Timber Trust, Inc. Class A CTT (3.4) 3.5 11.67 4.3
2 2 Plum Creek Timber Company, Inc. PCL 0.0 1.5 43.41 4.1
3 3 Rayonier Inc. RYN (1.6) (3.5) 26.45 3.8
4 4 Potlatch Corporation PCH 0.3 (4.4) 39.70 3.8
5 5 Weyerhaeuser Company WY (5.6) (7.6) 32.64 3.6

Notes from the author This is not a recommendation to buy or sell stocks. The highest-performing stocks are not necessarily the best choice for your portfolio. The purpose of this ranking is to shorten your stock analysis by enabling comparison of stock and sector performance. This is a snapshot of information available on 02 April 2015. Please perform your own due diligence before acting. The equity REITs are constituent companies of the FTSE NAREIT All REITs Index as of 31 March 2015. Companies whose equity market capitalization is lower than $100 million have been disregarded. Button


Did you enjoy our newsletter? Subscribe and receive for free our biweekly newsletter in your inbox. We won’t sell your email address to third parties. It’s our privacy policy! Subscribe for free to our biweekly newsletter


Written by Heli Brecailo Disclaimer This newsletter is not engaged in rendering tax, accounting, or other professional advice through this publication. No statement in this issue is to be construed as a recommendation to buy or sell any security or other investment. Please do your own due diligence before making any investment decision. Some information presented in this publication has been obtained from third-party sources considered to be reliable. Sources are not required to make representations as to the accuracy of the information, however, and consequently the publisher cannot guarantee accuracy. Disclosure The author has no positions in any shares mentioned, and no plans to initiate any positions within the next 72 hours.​

When the fundamentals aren’t being discussed

Release Date: 04 April 2015 (Extra Edition)

Last week, I posted a ranking of the US top-yield equity REITs. NorthStar Realty Finance Corp (NYSE: NRF) topped the list, sporting an 8.8 percent dividend yield. This week the stock is up slightly (0.7 percent), but the dividend yield continues to be attractive. As such, the stock is worth exploring in a little more detail. However, a look at NorthStar’s recent press releases shows that property fundamentals have not been the main point of discussion.

Background

NorthStar Realty is a Maryland-based diversified portfolio REIT in the commercial real estate realm, allocated largely in the health care and hotel sectors (65 percent of the 31 December 2014 portfolio). Its European assets will likely be spun out into a new NYSE publicly-traded company called NorthStar Realty Europe (NRE) by the second half of 2015. Over the past five weeks, NorthStar has raised US$ 353 million in common equity to buy properties in Europe, including the recently-closed acquisition of a €1.1 billion pan-European office portfolio.

Although it went public in October of 2004 as a mortgage REIT, NorthStar recently flipped into an equity REIT. It still has a debt component, but this is a minor portion of the portfolio (6.6 percent of its portfolio).

This past June NorthStar segregated its management off into NorthStar Asset Management Group Inc. (NYSE: NSAM), and since then both companies have been trading separately. NSAM acts as a brokerage firm for four non-traded REITs.

“Tension” between traded and non-traded

Conflict of interest has been the “elephant in the room” for this REIT. NSAM manages several funds, and there are questions about how management will deal with competing interests between different funds’ shareholders.

For instance, one question is whether NSAM will be able to fairly oversee both a traded fund (NRF) and non-traded funds, which have different asset management fee levels (management, acquisition, disposition and incentive fees). Remember that NSAM manages a pipeline of potential acquisitions and so must choose which fund gets to pick the best deals. This concern was also raised when the company decided to use NRF’s common equity offering proceeds to promote NorthStar Realty Europe’s growth and consequently spin it off. Although management argues that the spin-off unlocks value (as they discussed in their 6 March 2015 presentation, “Immediate value to NRF”), it still isn’t clear what’s in it for NRF.

This is a cloud hanging over NRF that could potentially harm stock performance in the long run. In my experience, concerns over conflict of interest have always driven share prices to discount territory that never realizes full value.

European arm

NorthStar’s European assets are valued at approximately $2.0 billion, and the real estate portfolio is comprised of 50 properties with five million square feet in prime locations, mainly in the United Kingdom, Germany, and France.

There are a number of positive points for NorthStar Realty Europe as part of an investment strategy. European real estate valuations haven’t recovered since the Great Recession. Cap rates relative to long-term interest rates have reached an all-time high. Upside on property value as appreciation of European REITs has historically signaled future appreciation of properties. And, of course, property diversification by country and type is almost always a valuable strategy.

Short interest spike

This March, short interest in NorthStar Realty rose more than 1,000 percent to 57,093,856 shares. About 19.2 percent of the company’s shares are now short.

Takeaway

Recent news associated with changes in management arrangements and the European spin-off has put NRF’s fundamentals on the back burner. I’m hoping that NSAM will refocus its energies on what matters. By the way, NorthStar is one of the few REITs (perhaps the only one) that does not disclose the operational metrics AFFO/FFO in its 10-K report.

Source: NorthStar Realty website, WSJ


Did you enjoy our newsletter? Subscribe and receive for free our biweekly newsletter in your inbox. We won’t sell your email address to third parties. It’s our privacy policy!

Subscribe for free to our biweekly newsletter


Written by Heli Brecailo

Disclaimer This newsletter is not engaged in rendering tax, accounting, or other professional advice through this publication. No statement in this issue is to be construed as a recommendation to buy or sell any security or other investment. Please do your own due diligence before making any investment decision. Some information presented in this publication has been obtained from third-party sources considered to be reliable. Sources are not required to make representations as to the accuracy of the information, however, and consequently the publisher cannot guarantee accuracy. Disclosure The author has no positions in any shares mentioned, and no plans to initiate any positions within the next 72 hours.​

U.S. – Top Yield Equity REITs by Sector

Reference Date: 27 March 2015

Total 159 REITs Ranked by Dividend Yield

Sec # – Ranking within property sector

Gen # – Ranking within all equity REITs


Property Sector: Diversified

Sector’s Median Price-to-FFO: 17.2

Sector’s Median Dividend Yield: 5.2

Sec # Gen # Company Ticker Share Price Q4 14 FFO Annual Dividend Price-to-FFO Div. Yield
1 1 NorthStar Realty Finance Corp. NRF 18.09 0.44* 1.60 10.3* 8.8
2 4 Select Income REIT SIR 25.00 0.63 1.92 9.9 7.7
3 9 Whitestone REIT WSR 16.04 0.22 1.14 18.2 7.1
4 11 Investors Real Estate Trust IRET 7.47 0.17 0.52 11.0 7.0
5 12 Lexington Realty Trust LXP 9.85 0.25 0.68 9.9 6.9
6 15 One Liberty Properties, Inc. OLP 24.45 0.33 1.56 18.5 6.4
7 16 Armada Hoffler Properties, Inc. AHH 10.75 0.20 0.68 13.4 6.3
8 17 EPR Properties EPR 59.41 1.10 3.63 13.5 6.1
9 21 Gaming and Leisure Properties, Inc. WI GLPI 36.95 0.57 2.18 16.2 5.9
10 24 GEO Group Inc GEO 43.78 0.70 2.48 15.6 5.7
11 25 W.P. Carey Inc. WPC 67.48 0.99 3.81 17.0 5.6
12 35 Corrections Corporation of America CXW 41.09 0.67 2.16 15.3 5.3
13 37 DuPont Fabros Technology, Inc. DFT 32.36 0.58 1.68 13.9 5.2
14 38 Iron Mountain, Inc. IRM 36.64 0.28 1.90 32.7 5.2
15 39 Digital Realty Trust, Inc. DLR 65.73 1.40 3.40 11.7 5.2
16 48 Lamar Advertising Company Class A LAMR 58.73 1.43 2.72 10.3 4.6
17 51 OUTFRONT Media Inc. OUT 30.09 0.57 1.36 13.2 4.5
18 59 Washington Real Estate Investment Trust WRE 27.45 0.40 1.20 17.2 4.4
19 78 CyrusOne, Inc. CONE 31.64 0.27 1.26 29.3 4.0
20 100 Gladstone Land Corp. LAND 11.98 0.09 0.42 31.9 3.5
21 102 QTS Realty Trust, Inc. Class A QTS 37.15 0.54 1.28 17.2 3.4
22 103 CoreSite Realty Corporation COR 48.84 0.61 1.68 20.0 3.4
23 115 Alexander’s, Inc. ALX 450.19 4.99 14.00 22.6 3.1
24 132 Gramercy Property Trust Inc. GPT 28.55 0.20 0.80 35.7 2.8
25 145 Vornado Realty Trust VNO 110.94 1.22 2.52 22.7 2.3
26 146 Silver Bay Realty Trust Corp. SBY 16.02 0.12 0.36 33.4 2.2
27 147 Starwood Waypoint Residential Trust SWAY 25.49 0.27 0.56 23.6 2.2
28 148 American Assets Trust, Inc. AAT 43.06 0.42 0.93 25.6 2.2
29 157 American Homes 4 Rent Class A AMH 16.29 0.11 0.20 37.0 1.2

*CAD


Property Sector: Health Care

Sector’s Median Price-to-FFO: 17.8

Sector’s Median Dividend Yield: 4.7

Sec # Gen # Company Ticker Share Price Q4 14 FFO Annual Dividend Price-to-FFO Div. Yield
1 10 Senior Housing Properties Trust SNH 22.36 0.48 1.56 11.6 7.0
2 20 Medical Properties Trust, Inc. MPW 14.84 0.15 0.88 24.7 5.9
3 27 New Senior Investment Group Inc SNR 16.69 0.23 0.92 18.1 5.5
4 30 Omega Healthcare Investors, Inc. OHI 40.21 0.68 2.16 14.8 5.4
5 31 HCP, Inc. HCP 42.15 0.70 2.26 15.1 5.4
6 40 Physicians Realty Trust DOC 17.46 0.19 0.90 23.0 5.2
7 44 National Health Investors, Inc. NHI 70.50 1.07 3.40 16.5 4.8
8 45 Sabra Health Care REIT, Inc. SBRA 32.73 0.54 1.56 15.2 4.8
9 46 CareTrust REIT Inc CTRE 13.68 0.24 0.64 14.3 4.7
10 49 Universal Health Realty Income Trust UHT 55.23 0.73 2.54 18.9 4.6
11 52 LTC Properties, Inc. LTC 45.14 0.64 2.04 17.6 4.5
12 58 Healthcare Realty Trust Incorporated HR 27.40 0.38 1.20 18.0 4.4
13 68 Health Care REIT, Inc. HCN 77.78 0.86 3.30 22.6 4.2
14 69 Healthcare Trust of America, Inc. Class A HTA 27.58 0.33 1.16 20.9 4.2
15 77 Aviv REIT, Inc. AVIV 36.10 0.42 1.44 21.5 4.0
16 112 Ventas, Inc. VTR 72.32 1.16 3.16 15.6 4.4*

*updated after posting.


Property Sector: Infrastructure

Sector’s Median Price-to-FFO: 21.5

Sector’s Median Dividend Yield: 3.9

Sec # Gen # Company Ticker Share Price Q4 14 FFO Annual Dividend Price-to-FFO Div. Yield
1 6 CorEnergy Infrastructure Trust, Inc. CORR 6.89 0.08 0.52 21.5 7.5
2 83 Crown Castle International Corp CCI 84.81 1.17 3.28 18.1 3.9
3 154 American Tower Corporation AMT 96.04 1.00 1.68 24.0 1.7

Property Sector: Lodging/Resorts

Sector’s Median Price-to-FFO: 16.2

Sector’s Median Dividend Yield: 3.9

Sec # Gen # Company Ticker Share Price Q4 14 FFO Annual Dividend Price-to-FFO Div. Yield
1 18 Hospitality Properties Trust HPT 32.58 0.87 1.96 9.4 6.0
2 42 Ashford Hospitality Trust, Inc. AHT 9.63 0.21 0.48 11.5 5.0
3 60 Hersha Hospitality Trust Class A HT 6.47 0.12 0.28 13.5 4.3
4 65 RLJ Lodging Trust RLJ 30.63 0.53 1.32 14.4 4.3
5 66 Ryman Hospitality Properties, Inc. RHP 60.85 1.76 2.60 8.6 4.3
6 71 Chesapeake Lodging Trust CHSP 33.70 0.38 1.40 22.2 4.2
7 72 Chatham Lodging Trust CLDT 28.95 0.23 1.20 31.5 4.1
8 76 Host Hotels & Resorts, Inc. HST 20.04 0.40 0.80 12.5 4.0
9 80 LaSalle Hotel Properties LHO 38.51 0.58 1.50 16.6 3.9
10 92 Sotherly Hotels Inc. SOHO 7.54 0.18 0.28 10.5 3.7
11 98 DiamondRock Hospitality Company DRH 13.99 0.19 0.50 18.4 3.6
12 105 Summit Hotel Properties, Inc., INN 13.83 0.19 0.47 18.2 3.4
13 136 Pebblebrook Hotel Trust PEB 45.69 0.43 1.24 26.6 2.7
14 156 FelCor Lodging Trust Incorporated FCH 11.37 0.11 0.16 25.8 1.4
15 158 Sunstone Hotel Investors, Inc. SHO 16.42 0.26 0.20 15.8 1.2
16 159 Ashford Hospitality Prime, Inc. AHP 16.70 0.21 0.20 19.9 1.2

Property Sector: Industrial/Office

Sector’s Median Price-to-FFO: 16.3

Sector’s Median Dividend Yield: 3.8

Sec # Gen # Company Ticker Share Price Q4 14 FFO Annual Dividend Price-to-FFO Div. Yield
1 2 Gladstone Commercial Corporation GOOD 18.46 0.65 1.50 7.1 8.1
2 5 Government Properties Income Trust GOV 22.70 0.56 1.72 10.1 7.6
3 7 City Office REIT, Inc. CIO 12.76 0.18 0.94 17.7 7.4
4 13 Chambers Street Properties CSG 7.85 0.14 0.51 14.0 6.5
5 19 Franklin Street Properties Corp. FSP 12.71 0.27 0.76 11.8 6.0
6 23 STAG Industrial, Inc. STAG 23.54 0.34 1.35 17.3 5.7
7 28 Monmouth Real Estate Investment Corporation Class A MNR 11.04 0.14 0.60 19.7 5.4
8 34 Liberty Property Trust LPT 35.97 0.67 1.90 13.4 5.3
9 41 First Potomac Realty Trust FPO 11.89 0.27 0.60 11.0 5.0
10 47 BioMed Realty Trust, Inc. BMR 22.35 0.35 1.04 16.0 4.7
11 50 Piedmont Office Realty Trust, Inc. Class A PDM 18.46 0.40 0.84 11.5 4.6
12 53 New York REIT, Inc. NYRT 10.26 0.23 0.46 11.2 4.5
13 54 Columbia Property Trust, Inc. CXP 26.88 0.49 1.20 13.7 4.5
14 62 Parkway Properties, Inc. PKY 17.37 0.31 0.75 14.0 4.3
15 84 EastGroup Properties, Inc. EGP 59.32 0.91 2.28 16.3 3.8
16 85 Corporate Office Properties Trust OFC 28.75 0.34 1.10 21.1 3.8
17 86 Brandywine Realty Trust BDN 15.89 0.30 0.60 13.2 3.8
18 90 Highwoods Properties, Inc. HIW 45.33 0.74 1.70 15.3 3.8
19 106 Prologis, Inc. PLD 43.04 0.52 1.44 20.7 3.3
20 109 DCT Industrial Trust Inc. DCT 34.46 0.46 1.12 18.7 3.3
21 113 Mack-Cali Realty Corporation CLI 19.11 0.34 0.60 14.1 3.1
22 114 Duke Realty Corporation DRE 21.70 0.20 0.68 27.1 3.1
23 116 Rexford Industrial Realty, Inc. REXR 15.60 0.19 0.48 20.5 3.1
24 117 Alexandria Real Estate Equities, Inc. ARE 97.40 0.86 2.96 28.3 3.0
27 120 Cousins Properties Incorporated CUZ 10.63 0.24 0.32 11.1 3.0
25 125 Terreno Realty Corporation TRNO 22.32 0.20 0.64 27.9 2.9
26 126 Douglas Emmett, Inc DEI 29.35 0.39 0.84 18.8 2.9
28 141 First Industrial Realty Trust, Inc. FR 20.86 0.32 0.51 16.3 2.4
29 142 PS Business Parks, Inc. PSB 82.16 2.17 2.00 9.5 2.4
30 149 Paramount Group, Inc. PGRE 19.14 0.39 0.38 12.3 2.0
31 150 SL Green Realty Corp. SLG 127.74 1.43 2.40 22.3 1.9
32 151 Boston Properties, Inc. BXP 139.81 1.26 2.60 27.7 1.9
33 152 Kilroy Realty Corporation KRC 75.48 0.78 1.40 24.2 1.9
34 153 Empire State Realty Trust, Inc. Class A ESRT 18.75 0.22 0.34 21.3 1.8
35 155 Hudson Pacific Properties, Inc. HPP 32.30 0.24 0.50 33.6 1.5

Property Sector: Retail

Sector’s Median Price-to-FFO: 18.8

Sector’s Median Dividend Yield: 3.8

Sec # Gen # Company Ticker Share Price Q4 14 FFO Annual Dividend Price-to-FFO Div. Yield
1 22 Spirit Realty Capital, Inc. SRC 11.84 0.20 0.68 14.8 5.7
2 26 Agree Realty Corporation ADC 32.60 0.57 1.80 14.3 5.5
3 29 CBL & Associates Properties, Inc. CBL 19.53 0.82 1.06 6.0 5.4
4 32 Inland Real Estate Corporation IRC 10.65 0.25 0.57 10.7 5.4
5 36 Excel Trust, Inc EXL 13.86 0.15 0.72 23.1 5.2
6 43 Getty Realty Corp. GTY 18.16 0.38 0.88 11.9 4.8
7 55 Realty Income Corporation O 51.06 0.64 2.27 19.9 4.5
8 56 Urstadt Biddle Properties Inc. Class A UBA 22.93 0.24 1.02 23.9 4.4
9 63 STORE Capital Corporation STOR 23.18 0.32 1.00 18.1 4.3
10 64 Ramco-Gershenson Properties Trust RPT 18.55 0.05 0.80 92.8 4.3
11 67 Retail Properties of America, Inc. Class A RPAI 15.61 0.26 0.66 15.0 4.2
12 70 National Retail Properties, Inc. NNN 40.42 0.56 1.68 18.0 4.2
13 81 Kite Realty Group Trust KRG 28.10 0.50 1.09 14.1 3.9
14 82 Weingarten Realty Investors WRI 35.59 0.51 1.38 17.4 3.9
15 87 Retail Opportunity Investments Corp. ROIC 18.03 0.21 0.68 21.5 3.8
16 88 Rouse Properties, Inc. RSE 19.10 0.36 0.72 13.3 3.8
17 91 DDR Corp. DDR 18.47 0.22 0.69 21.0 3.7
18 94 Pennsylvania Real Estate Investment Trust PEI 23.11 0.59 0.84 9.8 3.6
19 95 Kimco Realty Corporation KIM 26.52 0.38 0.96 17.4 3.6
20 101 Brixmor Property Group, Inc. BRX 26.12 0.43 0.90 15.2 3.4
21 107 Equity One, Inc. EQY 26.51 0.25 0.88 26.5 3.3
22 118 Saul Centers, Inc. BFS 56.70 0.62 1.72 22.9 3.0
23 119 Macerich Company MAC 86.15 0.99 2.60 21.8 3.0
24 121 Taubman Centers, Inc. TCO 76.75 0.54 2.26 35.5 2.9
25 122 Simon Property Group, Inc. SPG 194.26 2.47 5.60 19.7 2.9
26 123 Regency Centers Corporation REG 67.46 0.78 1.94 21.6 2.9
27 133 Acadia Realty Trust AKR 34.38 0.30 0.96 28.7 2.8
28 134 Tanger Factory Outlet Centers, Inc. SKT 35.10 0.40 0.96 21.9 2.7
29 137 Cedar Realty Trust, Inc. CDR 7.43 0.12 0.20 15.5 2.7
30 139 WP GLIMCHER, Inc WPG 16.59 0.46 0.44 9.0 2.7
31 143 Federal Realty Investment Trust FRT 145.66 1.13 3.48 32.2 2.4
32 144 General Growth Properties, Inc. GGP 29.55 0.38 0.68 19.4 2.3

Property Sector: Residential

Sector’s Median Price-to-FFO: 19.4

Sector’s Median Dividend Yield: 3.6

Sec # Gen # Company Ticker Share Price Q4 14 FFO Annual Dividend Price-to-FFO Div. Yield
1 3 Independence Realty Trust, Inc. IRT 9.31 0.14 0.72 16.6 7.7
2 8 UMH Properties, Inc. UMH 10.00 0.16 0.72 15.6 7.2
3 14 Preferred Apartment Communities, Inc. APTS 10.88 0.25 0.70 10.9 6.4
4 33 Trade Street Residential, Inc. TSRE 7.13 0.05 0.38 35.7 5.3
5 57 Home Properties, Inc. HME 68.92 1.16 3.04 14.9 4.4
6 73 Education Realty Trust, Inc. EDR 35.00 0.52 1.44 16.8 4.1
7 75 Mid-America Apartment Communities, Inc. MAA 76.73 1.35 3.08 14.2 4.0
8 79 Sun Communities, Inc. SUI 66.30 0.50 2.60 33.2 3.9
9 96 Camden Property Trust CPT 77.48 0.99 2.80 19.6 3.6
10 97 American Campus Communities, Inc. ACC 42.08 0.73 1.52 14.4 3.6
11 104 Associated Estates Realty Corporation AEC 24.62 0.33 0.84 18.7 3.4
12 108 UDR, Inc. UDR 33.91 0.40 1.11 21.2 3.3
13 110 Monogram Residential Trust Inc MORE 9.31 0.06 0.30 38.8 3.2
14 124 AvalonBay Communities, Inc. AVB 174.12 1.76 5.00 24.7 2.9
15 127 Apartment Investment and Management Company Class A AIV 39.38 0.54 1.12 18.2 2.8
16 129 Post Properties, Inc. PPS 56.56 0.73 1.60 19.4 2.8
17 130 Equity Residential EQR 78.45 0.87 2.21 22.5 2.8
18 135 Equity LifeStyle Properties, Inc. ELS 55.11 0.66 1.50 20.9 2.7
19 140 Essex Property Trust, Inc. ESS 232.37 2.29 5.76 25.4 2.5

Property Sector: Timber

Sector’s Median Price-to-Earnings: 27.8

Sector’s Median Dividend Yield: 3.8

Sec # Gen # Company Ticker Share Price Q4 14 Earnings Annual Dividend Price-to-Earnings Div. Yield
1 61 CatchMark Timber Trust, Inc. Class A CTT 11.57 0.05 0.50 57.9 4.3
2 74 Plum Creek Timber Company, Inc. PCL 43.42 0.39 1.76 27.8 4.1
3 89 Potlatch Corporation PCH 39.82 0.49 1.50 20.3 3.8
4 93 Rayonier Inc. RYN 27.00 0.07 1.00 96.4 3.7
5 99 Weyerhaeuser Company WY 33.05 0.31 1.16 26.7 3.5

Property Sector: Self-Storage

Sector’s Median Price-to-FFO: 22.8

Sector’s Median Dividend Yield: 2.8

Sec # Gen # Company Ticker Share Price Q4 14 FFO Annual Dividend Price-to-FFO Div. Yield
1 111 Sovran Self Storage SSS 93.52 1.08 3.00 21.6 3.2
2 128 Public Storage PSA 197.48 2.17 5.60 22.8 2.8
3 131 Extra Space Storage EXR 66.98 0.62 1.88 27.0 2.8
4 138 CubeSmart CUBE 23.80 0.26 0.64 22.9 2.7

Notes from the author

This is not a recommendation to buy or sell stocks. The highest-yielding stocks are not necessarily the best choice for your portfolio. The purpose of this ranking is to shorten your stock analysis by enabling comparison of stock and sector performance. This is a snapshot of information available on 27 March 2015. Please perform your own due diligence before acting.

The equity REITs are constituent companies of the FTSE NAREIT All REITs Index as of 28 February 2015.

Companies whose equity market capitalization is lower than $100 million have been disregarded.

The following companies have been disregarded due to no dividend distribution, lack of FFO data, or negative FFO:

Company
American Realty Capital Properties, Inc. Class A ARCP
Bluerock Residential Growth REIT, Inc. Class A BRG
Xenia Hotels & Resorts, Inc. XHR
Urban Edge Properties UE
InfraREIT, Inc. HIFR
Winthrop Realty Trust FUR
Easterly Government Properties, Inc. DEA
Strategic Hotels & Resorts, Inc. BEE
Equity Commonwealth EQC
American Residential Properties, Inc. ARPI
Equinix, Inc. EQIX
Campus Crest Communities, Inc. CCG

Button


Did you enjoy our newsletter? Subscribe and receive for free our biweekly newsletter in your inbox. We won’t sell your email address to third parties. It’s our privacy policy!

Subscribe for free to our biweekly newsletter


Written by Heli Brecailo

Disclaimer This newsletter is not engaged in rendering tax, accounting, or other professional advice through this publication. No statement in this issue is to be construed as a recommendation to buy or sell any security or other investment. Please do your own due diligence before making any investment decision. Some information presented in this publication has been obtained from third-party sources considered to be reliable. Sources are not required to make representations as to the accuracy of the information, however, and consequently the publisher cannot guarantee accuracy. Disclosure The author has no positions in any shares mentioned, and no plans to initiate any positions within the next 72 hours.​