This Data Dispatch is updated monthly and was last published June 5. 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 and can offer insight into how the Street is valuing different property sectors. While valuations within the portfolio of publicly traded REITs might not match all privately owned properties, the public markets can often be a leading indicator for potential future property pricing. That insight is particularly helpful when there is little price discovery in the market due to a lack of transactions.
Publicly listed US equity real estate investment trusts closed June 28 at a median 15.5% discount to their consensus net asset value per share estimates, down from a median discount of 16.5% as of May 31, according to S&P Global Market Intelligence data.
Largest discounts
Industrial Logistics Properties Trust registered the largest discount to net asset value (NAV) among all US REITs with at least $200 million market capitalization. The industrial REIT closed June 28 at $3.68, 71.8% below its consensus NAV estimate of $13.07.
For the second consecutive month, the hotel sector traded at the largest median discount to NAV among all REIT sectors, at 30.7%, followed by the office sector at 29.9%.
RLJ Lodging Trust was the only hotel-focused REIT among the top 10 public REITs on the largest discount list with market capitalizations of at least $200 million. RLJ Lodging Trust closed June 30 at $9.63, 46.5% below its consensus NAV estimate of $17.98.
Four REITs on the top discount list belonged to the office sector. Orion Office REIT Inc. posted the largest discount to NAV among the office REITs, trading 70.6% below the consensus NAV estimate of $12.22 as of June 28.
The other office sector REITs on the largest discount list were Hudson Pacific Properties Inc., Brandywine Realty Trust and Piedmont Office Realty Trust Inc., which traded at discounts of 61.3%, 49.0% and 45.1%, respectively.
– Download an Excel Template with data featured in this story.
– Set email alerts for future Data Dispatch articles.
– Read some of the day's top real estate news and insights from S&P Global Market Intelligence.
Largest premiums
The datacenter segment was the sole REIT sector to trade at a median premium to NAV as of June 28, at 9.6%. The sector traded at a median 8.4% premium to NAV on May 31.
Of the 10 public REITs on the largest premium list, six belonged to the healthcare sector. The healthcare REIT Welltower Inc. traded at the largest premium to NAV on the list, closing June 28 at $104.25, 58.8% above the consensus NAV estimate of $65.67.
Iron Mountain Inc., a REIT focused on information management services, occupied the second position on the largest premium list, closing June 28 at $89.62, 43.3% above the consensus NAV estimate of $62.53.
Three healthcare REITs — CareTrust REIT Inc., Omega Healthcare Investors Inc. and National Health Investors Inc. — occupied the third, fourth and fifth positions on the top premiums list, trading at premiums of 39.4%, 39.2% and 33.4%, respectively.
Digital Realty Trust Inc. was the only datacenter-focused REIT on the top premiums list. Digital Realty closed June 28 at $152.05, 18.1% above the consensus NAV estimate of $128.73.
