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NAV Monitor: US equity REITs trade at median 27.6% discount to NAV on Oct. 3

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NAV Monitor: US equity REITs trade at median 27.6% discount to NAV on Oct. 3

Editor's note: This Data Dispatch is updated monthly and was last published Sept. 7. The analysis includes current publicly traded U.S. equity real estate investment trusts that trade on the Nasdaq, NYSE or NYSE American with market capitalizations of at least $200 million. Click here to download these charts in Excel format.

Publicly listed U.S. equity REITs traded at a median 27.6% discount to their consensus S&P Capital IQ net asset value per-share estimates as of Oct. 3, a further plunge from the 19.1% discount at which they traded as of August-end.

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Offices, regional malls saw huge median discounts

Office REITs still traded at the largest discount to NAV, at a median of 51.2%. Within the office sector, Hudson Pacific Properties Inc. traded at a discount of 69.6%, the second-largest discount to NAV among all U.S. equity REITs above $200 million in market capitalization. Office Properties Income Trust followed, trading at a discount of 60.7% and was in seventh place in the overall top discount rankings. Two other office REITs included in the overall biggest discount list were Brandywine Realty Trust at 59.3% and Paramount Group Inc. at 57.6%, which held the eighth and ninth spots, respectively.

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The regional mall segment also traded at a large discount next to the office sector, at a median of 50.5%. Regional mall owner Macerich Co. closed Oct. 3 at $8.07, 64.2% below its consensus NAV estimate of $22.55, also the sixth-biggest discount to NAV across all U.S. equity REITs with at least $200 million in market capitalization. Likewise, mall giant Simon Property Group Inc. traded at a discount of 36.8% as of Oct. 3.

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Communications solely got a median premium

The communications sector was the sole property type that posted a median premium to NAV as of Oct. 3, at 4.4%. Within the communications sector, American Tower Corp. traded at a premium of 5.1%, the seventh-largest premium among all U.S. equity REITs above $200 million in market capitalization. SBA Communications Corp. is another communications REIT that ranked ninth on the top premium list, trading at a premium of 4.4%.

Multifamily REIT Bluerock Residential Growth REIT Inc. nabbed the first spot on the overall list of REITs with the highest premiums across all sectors, trading at 39.9%. Healthcare-focused LTC Properties Inc. and single tenant REIT Agree Realty Corp. followed, trading at premiums of 16.3% and 11.7%, respectively.

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