Although they've underperformed of late, real estate investment trusts are still worth a closer look. The recent rise of interest rates following a prolonged period of below-average levels could help restore REITs' long-term performance.
All 123 publicly traded US equity real estate investment trusts analyzed by S&P Global Market Intelligence traded below their respective consensus price target estimates. The specialty sector, which includes advertising, casinos, communications, data centers, energy infrastructure, farmland and timber, had the largest median implied upside to its consensus price target estimate, at 22.6%. REITs...
American Tower Corporation offers stable, recurring revenues and is now trading at a reasonable valuation, warranting a Buy rating. AMT benefits from strong operating leverage, multi-tenant towers, and long-term, non-cancellable contracts with low churn and built-in rent escalators. Management expects mid-single-digit organic growth, with potential upside from AI-driven data demand and growing ...
REITs generate lots of stable income, the bulk of which they must pay out in dividends. Prologis should be the largest dividend payer in the REIT sector this year.
REITs (MSCI US REIT Index, RMZ) are positioned for multi-year outperformance, with accelerating AFFO growth, healthy balance sheets, and discounted valuations. Despite underperformance versus the S&P 500, REITs offer a credible path to 13-15% annualized total returns via multiple expansion and a 4% dividend yield. Wide NAV discounts create near-term catalysts, as managements deploy asset sales,...
U.S. equity markets stumbled to close out the year, while long-term interest rates swelled toward four-month highs, as investors digested resilient economic data and locked in gains from 2025 leaders. The tranquil holiday season was jolted by dramatic geopolitical developments over the weekend, after a U.S. military operation captured and extradited Venezuelan strongman Nicolás Maduro. The stun...
U.S. equity markets climbed to fresh record highs in the Christmas-shortened trading week, buoyed by surprisingly solid GDP data, positive holiday spending trends, and a pullback in global interest rates. The delayed GDP report released this week showed a modest reacceleration in U.S. economic growth in the third-quarter to the strongest pace in two years alongside a cooler-than-expected inflat...
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