This Data Dispatch is updated monthly and was last published Aug. 2. The analysis includes US equity real estate investment trusts that trade on the Nasdaq, NYSE or NYSE American with market capitalizations of at least $200 million. You can download these charts in Excel format.
Publicly listed US equity real estate investment trusts traded at a median 19.5% discount to their consensus net asset value (NAV) per-share estimates as of Aug. 31, up from a median discount of 15.9% at the end of the prior month, according to S&P Global Market Intelligence data.
Largest discounts
Office REITs traded at the largest median discount to NAV at 35.4%. Hotel REITs followed closely, trading at a median discount to NAV of 33.8%, followed by regional mall REITs at 27.8%.
Office and hotel aside, other sectors that traded at a median discount to NAV higher than the overall average were diversified REITs, communications REITs and timber REITs.
Of the top 10 REITs on the largest discount list, six were office focused, while the other four REITs all came from different sectors: industrial, other retail, residential and hotel.
Newton, Mass.-based Office Properties Income Trust logged the largest discount to NAV among all public US REITs with market capitalizations of at least $200 million. The company's stock closed the Aug. 31 trading session at $7.40, 73.6% below the consensus NAV estimate of $28.03.
Industrial Logistics Properties Trust — an industrial REIT also based in Newton, Mass. — climbed one position to come in at the No. 2 spot on the largest discount list. Shares closed Aug. 31 at $3.93, 66.6% below the consensus NAV estimate of $11.77.
Dallas-based City Office REIT Inc., Los Angeles-based Hudson Pacific Properties Inc., Atlanta-based Piedmont Office Realty Trust Inc., Philadelphia-based Brandywine Realty Trust and Phoenix-based Orion Office REIT Inc. were the other office REITs on the largest discount list.
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Largest premiums
Only one sector — datacenter — traded at a median premium to NAV as of Aug. 31, at 8.7%.
Of the top 10 REITs on the biggest premiums list, five were healthcare-focused and two were datacenter-focused. Healthcare REITs traded at a median discount to NAV of 5.3% at the end of August.
As of Aug. 31, datacenter-focused Digital Realty Trust Inc.'s stock traded at a 10.4% premium to its consensus NAV estimate of $119.31, while the other datacenter REIT in the analysis, Equinix Inc., traded at a 7.0% premium to its consensus estimate of $730.31.
Healthcare-focused Welltower Inc. continued to trade at the highest median premium to NAV. Its stock closed Aug. 31 at $82.88, 40.3% above the consensus NAV estimate of $59.07.
Another healthcare REIT, Omega Healthcare Investors Inc., occupied the No. 2 spot on the highest premium list. Its shares traded at $31.82 on Aug. 31, which was 21.2% above the consensus NAV estimate of $26.26.
Other healthcare REITs on the list included CareTrust REIT Inc., LTC Properties Inc. and National Health Investors Inc.
The other three companies on the list each belonged to the specialty, casino and other retail sectors, respectively.
