Hunting for Undervalued REITs

Sept. 14, 2018 8:45 p.m. ET

Shares of real estate investment trusts have surged recently, and some, including CyrusOneand Simon Property,are trading at their 52-week highs.

What are the undervalued REITs?

Douglas Harter

Analyst, Credit Suisse

“Our August survey data show a continuation of the favorable supply and demand dynamics for the single-family rental sector. This backdrop will support high levels of occupancy and allow for continued rent growth. We reiterate our Outperform ratings on Invitation Homesand Front Yard Residential as our preferred names in the sector.”

Jennifer M. Fritzsche

Analyst, Wells Fargo Securities

“Compared to its broader real estate investment trust peers, Outperform-rated Digital Realty Trusttrades at a notable discount to sectors including industrials, residential, and office. Outperform-rated InterXion Holdingcurrently trades below its peer average, despite our expectation for a superior growth outlook.

David Katz

Analyst, Jefferies

Pebblebrook Hotel Trustand LaSalle Hotel Propertiesentered a definitive merger agreement, an announcement that should continue to support Extended Stay America.

Last Week Blue Skies for Stocks

Stocks rose on the week as trade concerns eased. The August consumer price index rose 0.1%, below the consensus, with core inflation up 2.2% from a year earlier. Turkey’s central bank defied the Erdogan government and raised rates. Bitcoin, however, continued to fall, ending the week at $6,538. The Dow Jones industrials finished the week up 0.92%, to 26,154.67; the S&P 500 rose 1.2% to 2904.98; and the Nasdaq Composite ticked up 1.36%, to 8010.04.

Trade Talk

Trade talks with Canada continued, as time grows short for the current Congress to be able to vote on

Read More Here...

Bookmark the permalink.