4 More REITs Hit New Yearly Lows

Worries about whether the Federal Reserve might slow the pace of interest rate hikes are taking a toll on a few real estate investment trusts (REITs). These four interest-sensitive REITs dropped to new 52-week lows as the sector continues to suffer from the more-sellers-than-buyers problem.

Douglas Emmett Inc. DEI buys, develops and manages office and multifamily properties in Los Angeles and Honolulu. With a market capitalization of $2.7 billion, the stock trades with a price-earnings (P/E) ratio of 30.87. The company pays a dividend of 6.98%, on the high side compared to that of the market as a whole.

The weekly price chart for Douglas Emmett, showing the new lows, is here:

Lument Finance Trust Inc. LFT operates a portfolio of commercial real estate debt investments. The market capitalization is $99 million, relatively small compared to the major real estate investment trusts. Lument is paying a 12.31% dividend, far above what most REITs offer, which raises the question: How long can it maintain that high of a payout?

The weekly price chart for Lument Finance Trust looks like this:

Paramount Group Inc. PGRE is another relatively small real estate investment trust with a market capitalization of $1.2 billion. The company is involved in the acquisition and development of office properties in New York, Washington, D.C., and San Francisco. Paramount pays a dividend of 5.31%.

Here’s the weekly price chart for Paramount Group:

Piedmont Office Realty Trust Inc. PDM is involved in commercial real estate properties throughout the United States, and mostly owns office buildings in major markets. The market capitalization is $1.1 billion, and the stock is trading with a price-earnings ratio of 29. Piedmont pays an 8.86% dividend.

The weekly price chart for Piedmont Office Realty Trust looks like this:

Whether the December consumer price index (CPI) shows more inflation or less inflation will affect these REITs as investors consider how the Fed reacts to the numbers. CPI data is set to be released on Dec. 13.

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