Decline comes despite growth in fundamentals
Despite recent challenges, fundamentals still look strong and 70% of the sector is undervalued.
With solid dividends and growth potential, these real estate investment trusts are good investments.
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These three companies are at the top of Morningstar's REIT coverage list.
No 5-star stocks in the sector, which is mostly fairly valued.
The sector currently trades in line with our fair value estimates.
These companies have underperformed the industry, but we see years of solid growth ahead.
Areas hurt most by the pandemic have rebounded.
With vaccine rollout, shoppers are back in the stores and travelers are returning to hotels.
We think the proposed elimination of the 1031 exchange will have limited impact on U.S. REITs.
We think the market misunderstands the ramifications of e-commerce.
Sector trades at a 4% premium to our fair value estimates.
We believe most REITs will continue to pay dividends, making their increased yields attractive to investors.
They have withstood the coronavirus in ways other REITs have not.
A fourth of the real estate sector trades in 5-star territory.
We've reduced our outlook, but attractive values remain.
Mall closures shifted sales online in the second quarter, but we expect shoppers and positive cash flow will quickly return.
We expect malls, hotels, and healthcare subsectors to rebound.
Dependable revenue should allow Healthpeak and Regency Centers to continue paying dividends at current levels.
The pandemic will cause an unprecedented revenue decline, but long-term recovery makes this sector attractive at current prices.
Hotel, mall, and healthcare subsectors should rebound strongly once the global crisis is over.
Long-term leases should mitigate the short-term impact.
What we see as possibilities, whether the coronavirus leaves or lingers.
Income-oriented investors should keep an eye on Macerich, Park Hotels & Resorts, and Ventas.
Overall, sector remains fairly valued and sensitive to interest rates.
Here's why mall and shopping center REITs should still expect solid growth.
Retail REITs in our coverage are undervalued and provide attractive dividend yields.
Opportunities in real estate live in the mall and hotel REITs.
Sector is one of the most fairly valued.
Investors should keep an eye out for high dividend payouts and potential capital gains in these real estate opportunities.
No stocks in our real estate coverage are trading at 5 stars.
After outperforming the market in 2018, we don’t see many real estate opportunities for investors.
Park Hotels & Resorts and Pebblebrook Hotel Trust are new to our coverage and are trading at slight discounts to our fair value estimate.
We think the company has several significant opportunities to create value.
Online retailers will continue to pressure brick-and-mortar outfits, but we believe that sales at high-quality properties will stay positive.
We expect low but steady and positive sales growth for shopping centers like Federal Realty and Kimco Realty.
Income-oriented investors should keep an eye on these healthcare and retail REIT firms.
REITs should have several more years of solid growth in property fundamentals as the economic cycle continues and many sectors have the peak in supply growth behind them.
We see long-term tailwinds and attractive dividend yields.
Ventas and Welltower hold Exemplary stewardship ratings that we believe will create value.