This Data Dispatch is updated monthly and was last published Dec. 5, 2023. 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 10.7% discount to their consensus net asset value per share estimates as of Dec. 29, 2023, down from a median discount of 20.2% as of Nov. 30, 2023, according to S&P Global Market Intelligence data.
Largest discounts
The office sector continued to trade at the largest median discount to net asset value (NAV) among all REIT sectors in December 2023, at 28.1%. The hotel sector followed with the second-largest median discount to NAV, at 19.4%. Diversified REITs traded at the third-largest median discount, at 16.9%.
Of the 10 public REITs on the largest discount list with market capitalizations of at least $200 million, six belonged to the office sector.
Office Properties Income Trust continued to trade at the largest discount, closing Dec. 29, 2023, at $7.32, 73.9% below its consensus NAV estimate.
Industrial REIT Industrial Logistics Properties Trust again took the second spot on the largest discounts list. The company stock ended Dec. 29, 2023, at $4.70, 60.1% below its consensus NAV estimate.
Residential REIT BRT Apartments Corp. landed the third position with an NAV discount of 51.7%.
Other office-focused REITs that landed on the largest discount list include Piedmont Office Realty Trust Inc., City Office REIT Inc., Brandywine Realty Trust, Peakstone Realty Trust and Hudson Pacific Properties Inc.
Healthcare REIT Medical Properties Trust Inc. was also on the list, trading at a discount of 46%.
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Largest premiums
Five segments traded at a median premium to NAV among all REIT sectors as of Dec. 29, 2023: datacenter, healthcare, self-storage, casino and other retail.
At 11.3%, the datacenter sector — consisting of two REITs — traded at the largest median premium to NAV among all REIT sectors as of Dec. 29, 2023.
Among the 10 REITs on the largest premium list, Digital Realty Trust Inc. was the only datacenter-focused one in December 2023, ending the month at $134.58, 11.6% above the consensus NAV estimate.
Healthcare-focused Welltower Inc. ranked No. 1, trading at $90.17, 50.1% above its consensus NAV estimate.
Three other healthcare REITs were on the largest premiums list: CareTrust REIT Inc., Omega Healthcare Investors Inc. and National Health Investors Inc., which landed the third, fourth and sixth positions, respectively.
Specialty-focused REIT Iron Mountain Inc. landed the second position, trading 34.9% above the consensus NAV estimate at Dec. 29, 2023.
