Editor’s note: This data expedition is updated monthly and was last published on September 7. The analysis includes currently publicly traded US real estate investment trusts that trade on the Nasdaq, NYSE or US NYSE with market capitalizations of at least $200 million. Click here to download these graphs in Excel format.
Publicly traded U.S. equity REITs were trading at a median discount of 27.6% to their consensus estimates of S&P Capital IQ’s net asset value per share as of Oct. 3, a further drop from the 19% discount. .1% at which they were trading at the end of August.
Offices and regional malls received huge median discounts
Office REITs continued to trade at the steepest discount to net asset value, at a median of 51.2%. In the office sector, Hudson Pacific Properties Inc. traded at a 69.6% discount, the second-largest discount to net asset value among all U.S. REITs with a market capitalization greater than $200 million. dollars. Office Property Income Trust followed, trading at a 60.7% discount and ranked seventh in the overall best discount ranking. Two other office REITs included in the overall list of deepest discounts were Brandywine Realty Trust at 59.3% and Paramount Group Inc. at 57.6%, which held the eighth and ninth spots respectively.
The regional shopping center segment also traded at a steep discount alongside the office sector, at a median of 50.5%. Regional mall owner Macerich Co. closed Oct. 3 at $8.07, 64.2% below its consensus estimate of net asset value of $22.55, also the sixth-largest discount to net asset value in all US equity REITs with a market capitalization of at least $200 million. Similarly, mall giant Simon Property Group Inc. was trading at a 36.8% discount as of Oct. 3.
Communications got only a median bonus
The communications sector was the only property type that had a median premium to net asset value as of October 3, at 4.4%. In the communications sector, American Tower Corp. was trading at a premium of 5.1%, tThe seventh largest premium among all US equity REITs over $200 million in market capitalization. SBA Communications Corp. is another communications REIT that ranked ninth on the best premiums list, trading at a premium of 4.4%.
Multi-family REIT Bluerock Residential Growth REIT Inc. snagged the top spot on the overall list of REITs with the highest premiums across all sectors, trading at 39.9%. Healthcare-focused LTC Properties Inc. and sole-tenant REIT Agree Realty Corp. followed, trading at premiums of 16.3% and 11.7%, respectively.