Real Estate Investment Trusts (REITs) represent a distinctive segment of the stock market that allows investors to venture into real estate indirectly, without the need to directly purchase property. At its core, a REIT is a company that owns, operates, or finances income-producing real estate across a range of property sectors. They are unique in that they are required by law to distribute at least 90% of their taxable income to shareholders in the form of dividends. This structure not only provides a consistent stream of income for investors but also makes REITs a favored choice for income-focused portfolios.
Investing in REIT stocks provides a way for investors to diversify their portfolios beyond traditional equities. As the performance of REITs is often uncorrelated with the broader stock market, they offer a degree of protection against market volatility. Furthermore, REITs can serve as a hedge against inflation, as real estate properties typically appreciate over time, leading to increased rental incomes.
However, it’s paramount for investors to realize that, like all stocks, REITs come with their own set of risks. It is vital to assess the property sectors the REIT specializes in, the quality of its holdings, and its history of dividend payouts before making an investment decision. Given this, here are three REIT stocks to check out in the stock market this week.
REIT Stocks To Buy [Or Sell] Right Now
- Simon Property Group, Inc. (NYSE: SPG)
- Equity Residential (NYSE: EQR)
- Digital Realty Trust, Inc. (NYSE: DLR)
Simon Property Group (SPG Stock)
Starting off, Simon Property Group, Inc. (SPG) Simon Property Group, Incorporated is recognized as one of the preeminent REITs on a global scale, specializing in premium retail real estate holdings such as upscale malls and distinguished shopping centers.
Earlier this month, Simon Property Group reported its second quarter of 2023 financial results. In detail, the company notched in earnings of $2.88 per share, on revenue of $1.37 billion. This is versus analysts’ estimates for the quarter of $2.91 per share, with revenue of $1.25 billion. Meanwhile, the company also reported a revenue increase of 7.01% versus the same period, the previous year.
Over the last month of trading, shares of SPG stock are down modestly by 0.68%. While, just this past Friday, Simon Property Group stock closed the day trading at $118.29 a share.
Equity Residential (EQR Stock)
Next, Equity Residential is a distinguished REIT that is proficient in the procurement, development, and management of multifamily residential properties. Located predominantly in urban and densely populated suburban locales within the United States.
At the end of last month, Equity Residential announced its second quarter 2023 earnings results. Diving in, the company posted earnings of $0.94 per share, with revenue of $717.31 million for Q2 2023. This is compared to Wall Street’s estimates which were an EPS of $0.94 and revenue estimates of $715.95 million. Additionally, revenue increased by 4.41% on a year-over-year basis.
Looking at the last month of trading action, shares of EQR stock have dropped by 2.45%. Moreover, as of this past Friday’s closing bell, Equity Residential is trading at $65.40 per share.
Digital Realty Trust (DLR Stock)
Last but not least, Digital Realty Trust (DLR) has carved a niche in the ownership, acquisition, and stewardship of state-of-the-art data centers. Their vast operational expanse covers critical markets in North America, Europe, Asia, and Australia, catering to a clientele that includes leading technology and social media enterprises.
At the end of July, Digital Realty also reported its Q2 2023 financial results. Getting right into it, the REIT announced earnings of $1.68 per share, with revenue of $1.37 billion for the second quarter of 2023. This is in comparison with consensus estimates on Wall Street which were earnings of $1.65 per share, and revenue of $1.36 billion. In addition, Digital Realty also posted a 19.92% increase in revenue versus the same period, the prior year.
In the last month of trading, DLR stock has advanced by 4.78%. Meanwhile, as of this past Friday’s closing bell, shares of Digital Realty Trust stock are trading at $119.96 a share.