4 More REITs Trading Below Book Value And Paying Dividends

This post was originally published on this site

The following real estate investment trusts (REITs) all trade below their book value, and each one pays a dividend. 

If the Federal Reserve ever makes the pivot back to lowering interest rates, REITs such as these may be of interest to patient investors. While the wait continues for a change in the rate environment, an investor continues to receive a dividend.

That’s the idea, anyway. It may or may not work out that way, but for those interested, here are the REITs:

Medical Properties Trust Inc. (NYSE:MPW) is a healthcare facilities real estate investment trust headquartered in Birmingham, Alabama. The company is trading at 85% of its book value and pays a dividend of 9.39%. Market capitalization is $7.46 billion. Although analysts are predicting a much tougher 2023, funds from operations (FFO) this year are up by 36.9. The past five-year FFO growth is up by 5.2%. The REIT pays a 10.25% dividend. The short float sits at 15.83%, indicating a lack of confidence by a significant group of traders. If those shorts are forced to cover at some point, a rally could be substantial. In mid-November, Bank of America Securities upgraded Medical Properties Trust from Neutral to Buy and increased the price target from $13 to $16. 

Latest Offerings on Benzinga’s Real Estate Investment Screener

  • Mercantile Industrial Park – Fully-Leased Light Industrial Portfolio With 17% Target IRR
  • The Chloe Residences – Multifamily Property In Austin, TX, With 17.4%-19.4% Target IRR

Sachem Capital Corp. (NYSEAMERICAN: SACH) is an American Stock Exchange-traded mortgage REIT with a market capitalization of $145 million, making it smaller than most in the sector. It’s available for purchase at a 35% discount from book value. Sachem is paying a dividend of 15%, but that high of a yield may be difficult to sustain. The Connecticut-based firm is showing funds from operations this year at a 7.1% increase and past five-year FFO at 9.7%. It is lightly traded with an average daily volume of about 338,000 shares.

New York-based Safehold Inc. (NYSE:SAFE) invests in and manages commercial real estate nationwide. The REIT trades at 91% of its book value and pays a dividend of 2.29%. With a market capitalization of $1.95 billion, it’s relatively lightly traded for a NYSE-listed security, with an average daily volume of 350,000 shares. The short float is a concerning 17.1% suggesting disbelief from those in the shorting business. Funds from operations gained this year by 15.4% and the past five-year gain is 30%. 

Greenwich, Connecticut-based Starwood Property Trust Inc. (NYSE:STWD) is a mortgage REIT now trading at a discount from its book value of 9%. Market capitalization is $5.9 billion, and the company pays a dividend of 10.01%. This year’s funds from operations increased by 31.9% and the past five-year FFO gain is 0.30%. Trading in Starwood is active with an average daily volume of 2.83 million shares.

Check Out More on Real Estate from Benzinga

  • Bezos-Backed Startup Lets You Become A Landlord With $100
  • This Fund Is Looking To Produce Moderate Returns If The Real Estate Market Doesn’t Collapse – And Spectacular Returns If It Does
  • This Little-Known REIT Is Producing Double-Digit Returns In A Bear Market: How?