Over the past 22 months, real estate investment trusts (REITs) have been decimated as high inflation, Federal Reserve interest rate hikes, declining tenant occupancy, war and the threat of a hard-landing recession have all impacted these stocks significantly.Thank you for reading this post, don't forget to subscribe!
The peak of REITs was on December 31, 2021 Vanguard Real Estate Index Fund ETF (NYSE:VNQ), which tracks the performance of the MSCI US REIT index, hit a high of $109.09 on the day, but has been falling since then. Its total return including dividends paid since then is negative 32.01%.
But a handful of REITs have been able to defy the bear market and prosper. Take a look at three REITs that have performed particularly well since the beginning of 2022.
Tanger Factory Outlet Centers Inc. (NYSE: SKT) is a Greensboro, North Carolina-based retail REIT with 37 indoor shopping centers and outdoor factory outlet malls spanning 14 million square feet and more than 2,700 stores in 20 states and Canada. Tanger Factory Outlet Centers was founded in 1981 and had its initial public offering (IPO) in May 1993.
Tanger investors recently got some positive news. On October 13, Tanger announced an increase in its quarterly dividend from $0.245 to $0.26 per share, payable on October 31 to stockholders of record on November 15. This represents a 6.1% increase in its annual dividend from $0.98 to $1.04 per share.
On October 12, JPMorgan analyst Michael Mueller upgraded Tanger Factory Outlet Centers from Underweight to Neutral and raised the price target to $25 from $24.
Tanger’s total return since January 1, 2022 is 29.48%.
Omega Healthcare Investors Inc. (NYSE:OHI) is a Hunt Valley, Maryland-based triple-net equity healthcare REIT that provides financing, capital and leases to 66 operators of 893 senior housing, skilled nursing and assisted living facilities in 42 states throughout the United States and the United Kingdom. Is. , Omega Healthcare Investors has no role in the day-to-day management of these operator-run facilities.
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Analysts have been largely supportive of Omega Healthcare recently, citing increased occupancy at its properties and profitable lease restructuring. On October 10, Bank of America Securities analyst Joshua Denerlein upgraded Omega Healthcare from Neutral to Buy and announced a $36 price target. On October 17, Wells Fargo analyst Connor Siversky maintained an equal-weight rating on Omega Healthcare and raised the price target to $34 from $33.
Omega Healthcare pays a quarterly dividend of $0.67, and an annual dividend of $2.68 yields 7.94%.
Omega Healthcare’s third-quarter earnings will be announced on November 2. Omega’s total return since January 1, 2022 is 27.76%.
Iron Mountain Inc. (NYSE:IRM) is a Portsmouth, New Hampshire-based specialty REIT that provides storage and information management services to more than 225,000 organizations worldwide, including 95% of the Fortune 1000 companies. Iron Mountain was founded in 1951 and had its IPO in February 1996.
On August 3, Iron Mountain announced an increase in its quarterly dividend from $0.619 to $0.65 per share. The $2.60 per share annual dividend yields 4.35%. However, the payout ratio is over 90%, so funds from operations (FFO) will be particularly important over the next few quarters.
On August 22, RBC Capital Markets analyst Jonathan Atkin upgraded Iron Mountain from Sector Perform to Outperform and raised the price target from $58 to $68.
There hasn’t been much news for Iron Mountain recently, yet its share price continues to rise slowly and steadily. Unlike most REITs, Iron Mountain has had a rising trend over the past 22 months, shares have traded above the 50- and 200-day moving averages, and its total return since January 1, 2022 is 24.73%.
Iron Mountain will announce its third quarter operating results on November 2.
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This article 3 REITs That Have Crushed the Two-Year REIT Bear Market originally appeared on Benzinga.com
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