5 REITs Hitting Higher Highs In February

Five real estate investment trusts (REITs) are successfully kicking off the year 2023, with each reaching higher four- and six-month highs. 

While there are no guarantees that the bullish vibe will continue, it’s a sweet start for the year for people who invested in the REITs. 

Apollo Commercial Real Estate Finance Inc. ARI is a mortgage REIT (mREIT) now trading with a price-earnings ratio of 6 and at just 71% of its book value. Apollo pays a dividend of 11.6%.

The mREIT is selling off from its early February highs but remains above both its 50-day moving average ( the blue line) and its 200-day moving average, a generally positive look.

Chatham Lodging Trust CLDT operates a hotel and motel properties portfolio. It’s trading at a 17% discount from its current book value. The company pays a 2.06% dividend.

Also selling off from its early February highs, this REIT continues to trade above both closely watched moving averages.

Host Hotels & Resorts Inc. HST is another REIT invested in hotels and resorts. This one has a price-earnings ratio of 16 and trades at about twice its book value. Host is paying a dividend of 2.59%. 

It’s another REIT that backed off the late January-early February highs but remains well above the 50-day and 200-day moving averages.

Pebblebrook Hotel Trust PEB is a hotel and motel REIT that’s showing price chart improvement in 2023. This REIT trades at 61% of its book value and pays a 0.25% dividend.

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Pebblebrook never exceeded the 200-day or 50-day moving average — even during the early February peak. After the relative strength indicator (RSI) below the price chart) reached the Overbought range, it sold off a bit.

Ventas Inc. VTR is a real estate investment trust with a portfolio of healthcare facilities. It’s trading just short of twice its book value, and the company is paying a 3.47% dividend.

The strongest feature of this chart is the crossover of the 50-day moving average above the 200-day moving average. 

What could take these REITs significantly back down in price? The most likely culprit is the January consumer price index to be released on Feb. 14. 

If the inflation readings show substantial increases, then it’s likely the Federal Reserve will raise interest rates higher and with a sense of greater urgency. This would not be a positive for the rate-sensitive real estate investment trust sector.

Weekly REIT Report: REITs are one of the most misunderstood investment options, making it difficult for investors to spot incredible opportunities until it’s too late. Benzinga’s in-house real estate research team has been working hard to identify the greatest opportunities in today’s market, which you can gain access to for free by signing up for Benzinga’s Weekly REIT Report.

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