This Data Dispatch is updated monthly and was last published Jan. 3. 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 15.8% discount to their consensus net asset value (NAV) per share estimates as of Jan. 31, up from a median discount of 10.7% as of Dec. 29, 2023, according to S&P Global Market Intelligence data.
Largest discounts
Consistent with the previous months, the office space traded at the largest median discount to NAV among all REIT sectors in January, at 30.6%. The hotel sector again followed the office sector with the second-largest median discount to NAV at 23.8%.
Diversified REITs traded at a 23.7% median discount to NAV, as of Jan. 31.
Of the 10 public REITs on the largest discount list with market capitalizations of at least $200 million, five were office-focused but none were hotel-focused. Only one REIT, Global Net Lease, belonged to the diversified sector on the largest discount list.
The five office REITs that were on the largest discount list included Orion Office REIT Inc., Brandywine Realty Trust, City Office REIT Inc., Piedmont Office Realty Trust Inc. and Hudson Pacific Properties Inc.
Industrial REIT Industrial Logistics Properties Trust traded at the largest discount to NAV, closing Jan. 31 at $3.98, 65.1% below its consensus NAV estimate of $11.39.
Industrial Logistics Properties was followed by healthcare-focused Medical Properties Trust Inc., which closed Jan. 31 at $3.10, 63.7% below its consensus NAV estimate.
Residential REITs BRT Apartments Corp. and NexPoint Residential Trust Inc. landed on the No. 4 and No. 10 spots, respectively.
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Largest premiums
The datacenter and healthcare segments were the two sectors to trade at a median premium to NAV as of Jan. 31, at 15.9% and 0.1%, respectively.
Datacenter-focused Equinix Inc. and Digital Realty Trust Inc. were among the 10 REITs with the largest premiums.
Equinix closed the Jan. 31 trading session at $829.77, 17.9% above its consensus NAV estimate. Digital Realty traded 13.8% above its consensus estimate, closing Jan. 31 at $140.46.
Of the 10 public REITs on the largest premium list, five were healthcare REITs, including Welltower Inc., which traded at the largest premium to NAV as of Jan. 31. Welltower closed Jan. 31 at $86.51, 42.5% above its consensus NAV estimate of $60.71.
The other healthcare REITs on the largest premium list were CareTrust REIT Inc., Omega Healthcare Investors Inc., National Health Investors Inc. and LTC Properties Inc.
Data storage REIT Iron Mountain Inc. ranked No. 2 on the largest premium list, trading at $67.52, 30.2% above its consensus estimate of $51.86.
Essential Properties Realty Trust Inc. and Tanger Inc. were the two other REITs on the 10 largest premium list.
