More REIT sub-sectors end in the green ahead of quarterly earnings release

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The hotel, office and wood sub-sectors ended in the green this week, ahead of the release of their quarterly results.

REIT balance sheets are the strongest they’ve ever been, and future earnings should raise their values. Market sentiment looks more positive this week.

Hotel REITs continued to benefit from a recovery in the travel industry, gaining 3.15% in W/W value. The office and timber REIT sub-sectors also advanced significantly, finishing up 1.37% and 1.27% respectively.

The risk-reward ratio has turned slightly positive on office REITs, Mizuho analyst Vikram Malhotra said in July.

The infrastructure REIT and data center sub-sectors were the main laggards, with infrastructure REITs losing 5.11% in value this week.

Baird analyst David Rodgers downgraded a number of REIT names on Monday given a change in macroeconomic assumptions.

“We are reducing estimates across our coverage for a longer higher rate outlook and expect continued downward revisions to fundamental expectations and a longer period of price discovery in the sell-off market. investments,” he explained.

Investors have dividends to count on, with more than 100 REITs having increased their dividends this year, according to Hoya Capital, author of Seeking Alpha.

However, with FFO growth significantly outpacing dividend growth, total dividend payout ratios are near all-time lows.

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