U.S. Industrial/Office REITs – Prospecting The Best Performing REIT Stocks

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We recently compiled an operational performance ranking of the best REIT stocks based on the Second Quarter results. Download our report free of charge>>

U.S. Self Storage REITs – What’s the Best Performing Company?

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We recently compiled an operational performance ranking of the best REIT stocks based on the Second Quarter results.

We tried to be as straightforward as possible because we want you to understand why particular stocks are leading the charts. We also constructed the operational performance ranking to be concise in order to show how we pick the key drivers of performance. Finally, we ensured… Download Report>>

U.S. Industrial REITs—How Are Small Cap Stocks Faring In Volatile Times?

I’ve been searching for a growth stock in the Industrial arena for my REIT portfolio. While large pure play Industrial REITs grew revenues between 6 and 11 percent last quarter, I’ve instead been entertaining the possibility of investing in two promising stocks whose growth rates have been more aggressive.

Sourced through Scoop.it from: www.gurufocus.com

STAG Industrial (NYSE:STAG) has suffered an amazing thirty-percent loss over the first eight months of the year, making it the worst performing stock amongst pure play Industrial Real Estate Investment Trusts, or REITs for short. To give you an idea just how incredible of a loss that is, Rexford Industrial (NYSE:REXR), the second worst performer, is down nearly half as much at eighteen percent. Another company that took a major hit is Monmouth Real Estate Investment (NYSE:MNR). Their share price fell by fourteen percent. All three companies are small capitalization stocks with a market cap below $1.2 billion.

That being said, STAG Industrial happens to be a stock with a greater chance for a quick recovery if the market bounces back to normal levels. STAG has a price to FFO of 12x, which is significantly below the average of 16x, and the small cap average of 16x. Operationally, we do not believe it is amongst the best, but the current market has beaten down the company mercilessly. We do see STAG as a short-term purchase. At least, if the stock does not appreciate, you will be able to profit from their eight-percent dividend yield.

In the Industrial REIT arena, small cap stocks have suffered far more than larger cap stocks. While larger cap stocks have returned an average of negative ten percent year to date, small cap investments are at negative sixteen percent. The general perception is that small cap stocks are far more vulnerable to volatile markets, and those figures appear to reinforce that perception. Although they are subject to larger swings, small cap stocks enjoy a greater upside because of their growth potential.

Terreno Realty Corporation (NYSE:TRNO) is the only small cap stock that has performed decently. So far this year, the company has a negative 1.4 percent return. Given all of the recent market ups and downs, especially considering the hits REITs have suffered, this figure is far better than average. We have performed extensive research on Terreno’s advantage over other Industrial REITs in our Q2-2015 Industrial REIT Ranking. The company is leading our ranking operationally, however not in yield or valuation criteria. Download our report for free.

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.

Does CubeSmart suffer from middle child syndrome with reason? (Series 4 of 5)

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As a middle child, it can often be difficult to get attention, especially as the third in a family of four children. The first typically gets more attention as there were not any siblings around vying for attention and the last gets coddling.

Does it get better if it changes its name to a tricky one?

That’s how I feel about CubeSmart (NYSE:CUBE). As of March 31, 2015, the Company’s market capitalization is US$3.9 billion. This is slightly higher than Sovran Self Storage, but not as high as Extra Space’s and Public Storage’s. However, that doesn’t mean CubeSmart’s not a quality company. It is a solid company that has strategically grown, which is ideal for a dividend growth investor.

Previously known as U-Store-It Trust, it changed its name to CubeSmart in 2011 to enjoy the branding benefits of joining the “big names” club, especially in a highly fragmented industry where customer service is a big differentiator. Furthermore, it takes pride for having re-positioned the portfolio, moving away from slow growth and less population, into high growth and more populated core markets such as New York, Washington DC, and Philadelphia. The result is a high quality, urban-oriented portfolio, which tends towards millennials who live in tight blocks and boomers who downsize to smaller homes.

As the portfolio changed, average occupancy increased from mid-seventy to ninety percent. Currently it is at an all-time high. Additionally, it has positioned itself in the highest income household neighborhoods versus its peers.

Since 2011, CubeSmart has checked all the following boxes:

  • 2-digit total revenue growth
  • 2-digit FFO growth rate
  • 2-digit dividend growth
  • Conservative dividend payout ratio
  • 6 percent average same store revenue growth
  • 8 percent average net operating income growth

2015 Projected Growth Rates 

  • 7 percent net operating income growth
  • 6 percent same store revenue growth
  • 4 percent FFO growth
  • 6 percent dividend

CubeSmart’s debt profile has improved over time and is currently on par with its peers. Nonetheless, the average interest rate of 4.0 percent is relatively high; Sovran’s is 3.7 and Extra Storage’s is 3.4 percent. Public Storage’s debt is less than one percent of its total market capitalization. The average maturity is six years. Most debt is fixed-rate and unsecured. The Company has mid-tier, investment-grade credit ratings from both Standard & Poor’s and Moody’s.

Although CubeSmart has seen capitalization rates of quality acquisitions decrease to approximately five percent, it has kept a good pace of acquisitions. Over the last three years, it has added 3.9, 1.5, and 2.6 million square feet to existing properties (2014, 2013 and 2012 respectively). As of December 31, 2014, the 421 owned self-storage facilities encompassed an aggregate of approximately 28.6 million rentable square feet.

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Valuation wise, price-to-FFO is on par with the last four year’s year-end price-to-FFO mean, as well as the sector’s mean. The dividend yield is acceptable at 2.8 percent.

The Company will release Q1 2015 financials after the market close on Thursday, April 30, 2015.

Takeaway

Although I like the growth story, there doesn’t seem to be much appreciation upside and the dividend yield is just okay. The middle child will have to do more to excel.

Summary

2011 2012 2013 2014 2015P*
Dividends declared per common share, $ 0.29 0.35 0.46 0.55 0.64
Q4 Dividend, $ 0.08 0.11 0.13 0.16
Dividend payout ratio, in percent 45 47 51 51
Dividend yield, in percent 2.7 2.4 2.9 2.5
FFO per share, $ 0.56 0.71 0.87 1.03 1.17
FFO per share (Q4 only), $ 0.09 0.21 0.21 0.26
AFFO per share, $ 0.65 0.74 0.91 1.08
Debt to total capitalization, in percent 37.3 33.3 32.8 23.8
Revenues – Total, $ 000s 227,245 266,322 318,395 376,963
Revenues – Same Store, in percent 3.6 3.8 7.4 7.2 5.5
NOI – Same Store, in percent 5.7 6.0 9.3 9.6 6.5
Year End Occupancy – Same Store, in percent 79.1 85.1 88.8 90.0
Share Price on 31 December, $ 10.64 14.57 15.94 22.07 23.12
P/FFO on 31 December 19.0 20.5 18.3 21.4 19.8
 *2015P=2015 Projection

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



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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

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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.​