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By: Aquib Nawab
Finance
Welltower Inc., a leading healthcare REIT, showcased an 18% growth rate with $1.4B in Q3 acquisitions. Benefiting from the Affordable Care Act, Morningstar holds a "buy" rating with a $103 fair value estimate for WELL stock, which closed at $87.93 on 2nd Feb.
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Crown Castle Inc. (CCI), a REIT for wireless towers, saw a 33% stock drop amid challenges like activist pressure and spending slowdowns. Despite fears of a dividend cut, analysts see the dividend as secure, with a "buy" rating and a $130 fair value estimate.
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Realty Income Corp. (O), a retail REIT, offers a 5.7% dividend yield and focuses on single-tenant properties with tenants resistant to e-commerce competition and economic downturns. Morningstar maintains a "buy" rating with a $76 fair value estimate for O stock, which closed at $54.19 on 2nd Feb.
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AvalonBay (AVB) thrives in upscale multifamily REITs, despite supply impacts. With 4.9% job and income growth in key markets, it's set for NOI growth above inflation. Morningstar rates it "buy" with a $233 fair value, closing at $175.06 on 2nd Feb.
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SBA Communications, a REIT with a global tower network, is praised for its U.S. dominance and potential in developing markets. Analyst Dolgin advises less focus on buybacks, more on expansion. Morningstar rates it "buy" with a $260 fair value estimate for SBAC stock, which closed at $224.71 on 2nd Feb.
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Equity Residential (EQR), a multifamily REIT, expects slower growth but remains strong long-term, focusing on urban coastal markets like LA and San Diego. Morningstar rates it "buy" with an $87 fair value estimate for EQR stock, which closed at $60.17 on 2nd Feb.
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Boston Properties (BXP), an office REIT in top U.S. cities, offers a high 6% dividend yield. Despite a forecasted 2.5% decline in 2024 FFO, it's praised for premium properties and stable occupancy. Morningstar rates it "buy" with a $95 fair value estimate for BXP stock, which closed at $63.69 on 2nd Feb.
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Invitation Homes (INVH) forecasts 3% growth in single-family starts in 2024, with rent costs below homeownership, driving high occupancy and rent growth. It leverages in-house technicians for better margins. Morningstar rates it "buy" with a $41 fair value.
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Ventas Inc., a healthcare REIT, saw a 1.3% rise in senior housing occupancy and 7.9% NOI growth, outperforming expectations. With demand set to exceed supply, it aims to match 2019 levels by 2025. Morningstar rates it "buy" with a $72 estimate for VTR stock, last at $46.36.
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