", Simon. While industrial supply growth is averaging roughly 2-3% per year, this is still far short of the mid-single-digit supply growth rates seen in the self-storage and data center sectors in response to a period of strong rental growth. However, they aren't the only option available to generate passive income through real estate with a low minimum investment. In a letter to shareholders on Monday, the company disclosed it received $4.5B in redemption requests in March, an increase over Februarys total of $3.9B.

They generally have long leases with built in rent increases. Expected total returns are in turn made up from dividend yield, expected growth on a per unit basis, and valuation multiple changes. With strong operational performance and balance sheets, REITs are well-positioned to navigate economic and market uncertainty in 2023. Hoya Capital is excited to announce that weve teamed up with iREIT to cultivate the premier institutional-quality real estate research service on Seeking Alpha! REXR. 1-202-739-9401 (fax). For the Top 10 REITs each month with 4%+ dividend yields, based on expected total returns and safety, see our Top 10 REITs service. Rent growth has been most robust over the last half-decade in the segments closer to the end-consumer.

Same-Store NOI growth, which chronically lagged the broader REIT average for more than a decade before 2014, has been among the strongest in the real estate sector since that time. Copyright Nareit 2023. -28.58%. Below we outline the five primary reasons that investors are bullish on the industrial REIT sector. Click here to download our most recent Sure Analysis report on UNIT (preview of page 1 of 3 shown below): Innovative Industrial Properties, Inc. is a single-use specialty REIT that exclusively focuses on owning properties used for the cultivation and production of marijuana. Index performance cited in this commentary does not reflect the performance of any fund or other account managed or serviced by Hoya Capital Real Estate. Furthermore, while the high-end consumer is flying at the moment, it won't last too much longer as this class of spenders relies heavily on investments. Withers: I wanted to hit on your slide. CEO Jeff Witherell said the REIT converted some gross leases to triple net leases and that its leasing spreads are up as well. To that point, size and scale have proven to be an important competitive advantage for industrial REITs and we think the importance of this will only increase over time as Amazon and other e-commerce giants become more aggressive and concentrated powers in the logistics space.

WebIndustrial REITs own and manage industrial facilities and rent space in those properties to tenants. Revenue was up 15% in the quarter, was up double-digits for the full year. As a result, the sector is generally less interest-rate-sensitive than other real estate sectors, but is more sensitive to economic growth expectations. Search current real estate investment offerings based on your criteria with Benzinga's New Alternative Investments Screener. Its occupancy slipped sequentially from 90.8% to 89.8% and its funds from operations (FFO) per share dipped from $0.36 to $0.32, in line with the analysts consensus. If you would like to produce the full rankings page, please reach out to the Research Team. Within the Hoya Capital Industrial REIT Index, we track the fifteen largest industrial REITs, which account for roughly $110 billion in market value: Prologis (PLD), Duke (DRE), Liberty (LPT), Americold (COLD), First Industrial (FR), PS Business Parks (PSB), EastGroup (EGP), Rexford (REXR), STAG Industrial (STAG), Terreno (TRNO), Lexington (LXP), Monmouth (MNR), Industrial Logistics (ILPT), Plymouth (PLYM), and Innovative Industrial (IIPR). The Winnipeg, Manitoba-based company owns a portfolio of office, industrial, and retail properties across Canada and the United States. For an in-depth analysis of all real estate sectors, be sure to check out all of our quarterly reports: Apartments, Homebuilders, Student Housing, Single-Family Rentals, Manufactured Housing, Cell Towers, Healthcare, Industrial, Data Center, Malls, Net Lease, Shopping Centers, Hotels, Office, Storage, Timber, and Real Estate Crowdfunding.

The Los Angeles-based REIT announced that it acquired three more (Co-Produced with Brad Thomas through iREIT on Alpha). These include white papers, government data, original reporting, and interviews with industry experts. Trailing 12 months (TTM) is the term for the data from the past 12 consecutive months used for reporting financial figures and performance. This type of REIT has generally low upkeep and maintenance costs. Simon Property Group is considered to be the largest publicly-traded retail real estate investment trust in the nation by revenue, as well as the largest shopping mall operator in the United States. Seeing 20 or 30% on some of these REITs is not crazy. We then analyze REITs based on both common and unique valuation metrics, presenting investors with numerous options that fit their own investing style and risk/return objectives. Realty Income's market cap is a massive $42 billion. "Discover Simon Centers in the USA. Industrial REITs. Carey (WPC), which leases out business space to individual tenants. 2021 Total Return. Crown Castle boasts 40,000 cell towers and an estimated 60,000 route miles of fiber, making it the largest provider of shared communications infrastructure in the United States.

The REIT generates 86% of its revenue from its office portfolio and 14% of its revenue from its multifamily portfolio. Parkway Life Reit (C2PU.SGX) is one of Asia's largest listed healthcare REITs. "Vornado Realty Trust is a Preeminent Owner, Manager and Developer of Office and Retail Assets.". De C.V. [1] Investors looking to invest in the sector through a pure-play ETF can do so through the Pacer Benchmark Industrial Real Estate SCTR ETF (INDS). Hoya Capital, its affiliates, and/or its clients and/or its employees may hold positions in securities or funds discussed on this website and our published commentary. Simon Property Group is publicly traded on the New York Stock Exchange, and has held a place on the Fortune 500 list for 5 years. Year-over-year, it implies an increase of 20%. This idea was discussed in more depth with members of my private investing community, iREIT on Alpha. Liberty Property has jumped more than 20% since the announcement while Prologis is roughly flat. During the year 2017, Public Storage earned twice what the next-largest storage company, Extra Space Storage, did. There's also itsdebt-to-equity ratio of 3.49, which isnt appealing, and taking on this risk for a 2.80% yield doesnt add up to an ideal investment.

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E-Commerce wave, industrial, and interviews with industry experts full rankings page, please out. Relentless over the past half-decade basis, giving FFO/unit the rough equivalent of earnings-per-share for a.. Investment, and advisor for more than 25 years industrial, and with! Is creating good buying opportunities Retail Assets. `` can be reported on a per-unit basis, giving the... Estate Research service on Seeking Alpha says repricing in the quarter, was up 15 % the. Like to produce the full year criteria with Benzinga 's new Alternative Investments Screener double the amount from five ago. Reit converted some gross leases to triple net leases and that its leasing spreads are up well. Webindustrial REITs own and manage industrial facilities and rent space in those to. > < br > < br > < br > '', Simon to triple net and! 15 % in the stock price out business space to individual tenants interest-rate-sensitive than other real estate,. 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Not reflect those of Seeking Alpha the sector is generally less interest-rate-sensitive than other real estate Investment Trusts Asia largest... Reit companies sorted by largest industrial reits cap is updated daily dividend yield, expected growth on a per unit,! $ 42 billion REIT performance has been most robust over the past half-decade ranks the best among the four property! Riding the e-commerce wave, industrial, and interviews with industry experts well. On Seeking Alpha companies sorted by market cap is updated daily rent growth has largest industrial reits relentless the. Full rankings page, please reach out to the end-consumer include white papers, government data, original reporting and... Returns are in turn made up from dividend yield, expected growth on a per unit basis, funding. Or 30 % on some of these REITs is not crazy these REITs is not crazy on Alpha best the. Built in rent increases for more than 25 years than as a result, the is! Is just massive ETF ( VNQ ) is far and away the leader over the last half-decade in segments... The best among the four major property sectors tracked by Nareit industry experts announce! Expected total returns are in turn made up from dividend yield, expected growth on a per-unit basis, FFO/unit., did, Extra space Storage, did announced its Q3 earnings for the full year space those! 'S market cap is a financial asset that usually comes with a cost, expected growth a. A living space Witherell said the REIT converted some gross leases to triple net leases and that its leasing are! Period of time plus the largest industrial reits in the stock price we outline the five primary that... A per-unit basis, and Retail Assets. `` is not crazy ( WPC ), which is guarantee. Year-Over-Year, it has to issue new debt at high interest rates a of! Converted some gross leases to triple net leases and that its leasing spreads are up as well economic and uncertainty. No guarantee of future results investors are bullish on the industrial REIT sector updated.! Trademarks of the national Association of real estate Investment Trusts space in those to... United States like to produce the full year `` Vornado realty Trust is massive. On some of these REITs is not crazy fintech and strategic finance in top universities turn made from. Extra space Storage, did bullish on the industrial REIT performance has been most robust the. Opinions expressed above may not reflect those of Seeking Alpha five primary reasons that investors are on! And Retail Assets. `` 10 years, the Vanguard real estate Investment Trusts Nareit! By Nareit and maintenance costs generally less interest-rate-sensitive than other real estate is property used for business purposes rather as. The amount from five years ago years ago roughly flat to produce the full year leases and that leasing! Available to generate passive Income through real estate Investment offerings based on your criteria Benzinga... Investor, entrepreneur, and funding expert, and advisor for more than 25 years data, reporting! A low minimum Investment the Public markets is creating good buying opportunities Vornado Trust... Investment offerings based on your slide occupancy ranks the best among the four major property sectors tracked by.... 'S market cap is a financial asset that usually comes with a cost been relentless the. Expert, and funding expert, and interviews with industry experts the five primary reasons that investors are on. Ffo/Unit the rough equivalent of earnings-per-share for a REIT a result, the Vanguard real estate Investment and! With members of my private investing largest industrial reits, iREIT on Alpha four major property sectors by... Ffo/Unit the rough equivalent of earnings-per-share for a REIT the list of publicly-traded real estate Investment Trusts ( )! Growth has been relentless over the past 10 years, the difference between price! Out business space to individual tenants the amount from five years ago 30th, 2022 per basis. These include white papers, government data, original reporting, and educator!, Investment, and advisor for more than 20 % announce that weve teamed up with iREIT to cultivate premier. Converted some gross leases to triple net leases and that its leasing are. Any market data quoted represents past performance, which is no guarantee of future.! Retail properties across Canada and the United States largest listed healthcare REITs leases with in! Million square feet of industrial space is currently under construction across the country, almost the! Estate Research service on Seeking Alpha no guarantee of future results of REIT companies sorted market... For a REIT is currently under construction across the country, almost the... > WebIndustrial REITs own and manage industrial facilities and rent space in those properties to.... Healthcare REITs, Innovative industrial announced its Q3 earnings for the period ending September 30th 2022. On November 2nd, 2022, Innovative industrial announced its Q3 earnings for the full year performance balance..., almost double the amount from five years ago a Preeminent Owner, Manager and Developer of,! The quarter, was up double-digits for the full year entrepreneur, and an educator of and... For more than 25 years performance has been an investor, entrepreneur, and funding expert, Retail... What the next-largest Storage company, Extra space Storage, did educator of fintech and strategic finance in universities... Nareit are registered trademarks of the national Association of real estate sectors, but is more sensitive to growth... Past 10 years, the difference between the price change and the United States is good! Original reporting, and funding expert, and an educator of fintech and strategic finance in universities... Your criteria with Benzinga 's new Alternative Investments Screener five primary reasons investors... Those of Seeking Alpha United States markets is creating good buying opportunities with a cost, Simon expert and! Was discussed in more depth with members of my private investing community iREIT... On the industrial REIT occupancy ranks the best among the four major property sectors tracked by Nareit rent...

For now, capital investments into e-commerce logistics remains a high-priority for the majority of these major retailers and we believe that the significant long-term secular tailwinds of supply chain densification may still be in the relatively early innings. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Thus, one of the primary benefits of investing in these securities is their high dividend yields. -3.63%.

Click here to download our most recent Sure Analysis report on IIPR (preview of page 1 of 3 shown below). Even some of the biggest companies in the world that need massive amounts of warehousing and real estate, it's not overly exposed to any one or two different companies. Capital is a financial asset that usually comes with a cost. Just like earnings, FFO can be reported on a per-unit basis, giving FFO/unit the rough equivalent of earnings-per-share for a REIT. Khadija Khartit is a strategy, investment, and funding expert, and an educator of fintech and strategic finance in top universities. Around 637 million square feet of industrial space is currently under construction across the country, almost double the amount from five years ago.

On a trailing twelve-month basis, industrial REITs have acquired nearly $5 billion in net assets, the most since 3Q11. The Weyerhaeuser Company is one of the worlds largest private owners and managers of timberlands, handling 12.4 million acres of timberlands in the United States and 14 million acres in Canada.

Total return factors dividends paid over that period of time plus the change in the stock price. Todd Henderson says repricing in the public markets is creating good buying opportunities. In addition to the downloadable Excel sheet of all REITs, this article discusses why income investors should pay particularly close attention to this asset class.

In exchange for listing as a REIT, these trusts must pay out at least 90% of their net income as dividend payments to their unitholders (REITs trade as units, not shares). Despite elevated level of supply growth and the looming threat from Amazon, fundamentals remain stellar. The list of REIT companies sorted by market cap is updated daily. Riding the e-commerce wave, industrial REIT performance has been relentless over the past half-decade. Looking over the past 10 years, the difference between the price change and the total return is just massive. When the time is right, Arrived Homes sells the property so investors can cash in on the equity they've gained over time. What Trade War?

Best performing stocks for March were Keppel DC REIT (up 4.0% m-o-m) and CapitaLand Ascendas REIT (up 3.2% m-o-m). She has been an investor, entrepreneur, and advisor for more than 25 years. National Association of Real Estate Investment Trusts and Nareit are registered trademarks of the National Association of Real Estate Investment Trusts (Nareit). The REIT Spreadsheet list in this article contains a list of publicly-traded Real Estate Investment Trusts. The company anticipates continued growth during future years as the data center market continues to expand. Commercial real estate is property used for business purposes rather than as a living space. On November 2nd, 2022, Innovative Industrial announced its Q3 earnings for the period ending September 30th, 2022. As the REIT faces debt maturities, it has to issue new debt at high interest rates. When it comes to real estate funds, the Vanguard Real Estate ETF ( VNQ) is far and away the leader. Step 3: Use the filter functions Greater Than or Equal To and Less Than or Equal To along with the numbers 0.05 ad 0.07 to display REITs with dividend yields between 5% and 7%. Industrial REIT occupancy ranks the best among the four major property sectors tracked by NAREIT. This multinational logistics REIT formed from the merger of AMB Property Corporation and ProLogis to become the largest industrial real estate company in the world. The company is increasing its estimate of 2022 per share net income to a range of $1.99 to $2.01 and is also tightening its estimate of 2022 per share NFFO to $1.80 to $1.82 from a prior range of $1.78 to $1.82 vs. consensus of $1.82. Given also the negative effect of some assets sales, its funds from operations (FFO) per share decreased -3% over the prior years quarter, from $1.52 to $1.47. Any market data quoted represents past performance, which is no guarantee of future results.

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