The Real Estate Investment Trust (REIT) industry is relatively better positioned than many industries to survive the high market volatility, as they typically benefit from an inflationary environment. Moreover, investors prefer REITs in troubled times because of their high dividend distributions.
The FTSE EPRA/Nareit Global Real Estate Index Series outperformed broader markets in July 2022. Moreover, according to Statista, the REIT industry in the U.S. achieved a record market capitalization of $1.74 billion in 2021. Rising demand for space and warehouses fosters significant growth possibilities for REITs.
Given the industry’s promising prospects, it could be wise to invest in beaten-down yet fundamentally strong REITs Apartment Income REIT Corp. (AIRC), Bridge Investment Group Holdings Inc. (BRDG), and Urstadt Biddle Properties Inc. (UBA).
Apartment Income REIT Corp. (AIRC)
AIRC is a real estate investment trust focused on the ownership and management of quality apartment communities located in the largest markets in the U.S. It is one of the country’s largest owners and operators of apartments, with 99 communities in 12 states and the District of Columbia.
On July 28, 2022, CEO Terry Considine said, “With a clear strategy focused on efficient operations, low leverage, a capable team, and an engaged Board, AIRC has achieved substantially all of the goals set out.”
AIRC’s rental and other property revenues increased 2.4% year-over-year to $181.01 million for the second quarter ended June 30, 2022. Its total revenues came in at $183.50 million, up 2.9% year-over-year. Also, its NAREIT FFO came in at $100.42 million, up 131.1% year-over-year, while the NAREIT FFO per share came in at $0.64, up 128.6% year-over-year.
AIRC’s revenue is expected to increase marginally year-over-year to $753.68 million in 2022. Its EPS is estimated to grow 6,650% year-over-year to $4.05 in 2022. Over the past month, the stock has lost 9.4% to close the last trading session at $41.08.
AIRC’s strong fundamentals are reflected in its POWR Ratings. The stock has an overall B rating, which indicates a Buy in our proprietary rating system. The POWR Ratings assess stocks by 118 different factors, each with its own weighting.
AIRC has a B grade for Growth, Sentiment, and Quality. Within the REITs – Residential industry, it is ranked #2 out of 23 stocks. Click here for the additional POWR Ratings for Value, Momentum, and Stability for AIRC.
Bridge Investment Group Holdings Inc. (BRDG)
BRDG engages in the real estate investment management business in the United States. It manages capital on behalf of approximately a hundred global institutions and 6,500 individual investors across 25 investment vehicles.
On August 8, 2022, BRDG launched its newest strategy, Bridge Ventures. This venture will focus on early and later-stage PropTech companies and pursue investments in industry-leading PropTech funds, thereby diversifying BRDG’s existing portfolio.
In addition, on July 13, 2022, BRDG launched its…
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