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Real estate investment trusts (REITs) are staging a robust recovery after facing challenges in the third quarter, with several REITs surpassing analyst estimates. Notable performers include One Liberty Properties Inc. (NYSE: OLP), Realty Income Corp. (NYSE: O), Tanger Factory Outlet Centers Inc. (NYSE: SKT), and Service Properties Trust (NASDAQ: SVC). Despite concerns about high-interest rates and potential economic downturns, these REITs have demonstrated resilience, with strong financial results in the third quarter.
Revised Article: After enduring a challenging third quarter that saw real estate investment trusts (REITs) facing a decline in share prices, these entities are making a strong comeback, surpassing analyst estimates. Despite lingering concerns about high-interest rates, increasing vacancies, and the possibility of a recession, several REITs have defied expectations with robust third-quarter performances.
- One Liberty Properties Inc. (NYSE: OLP):
- Based in Great Neck, New York, One Liberty Properties is a diversified REIT managing retail, office, and industrial properties across 31 states.
- The company reported third-quarter results on Nov. 6, with adjusted funds from operations (AFFO) of $0.49, surpassing the estimate of $0.16. Revenue reached $22.55 million, exceeding the estimate of $22.5 million.
- On Oct. 6, the board of directors approved a share repurchase plan for up to $10 million of common stock, signaling positive momentum.
- Realty Income Corp. (NYSE: O):
- Based in San Diego, California, Realty Income is a triple-net lease REIT with over 13,100 properties globally.
- Despite facing criticism for its acquisition of Spirit Realty Capital, Realty Income reported strong third-quarter results on Nov. 6. Funds from operations (FFO) of $1.02 per share beat analysts’ consensus estimate of $1, and revenue of $1.04 billion surpassed estimates of $955.78 million.
- The company’s resilience is evident in its 639 consecutive monthly dividends paid and 122 increases since 1994.
- Tanger Factory Outlet Centers Inc. (NYSE: SKT):
- Headquartered in Greensboro, North Carolina, Tanger is a retail REIT with 37 shopping centers and outlet malls across 20 states and Canada.
- Tanger announced a dividend increase on Oct. 13, a positive sign preceding its third-quarter results on Nov. 6. FFO of $0.50 exceeded estimates of $0.47, and revenue of $117.35 million beat estimates of $110.02 million.
- With a solid quarter, Tanger raised its 2023 full-year FFO guidance from $1.85-$1.92 to $1.90-$1.94.
- Service Properties Trust (NASDAQ: SVC):
- Based in Newton, Massachusetts, Service Properties Trust is a diversified REIT owning hotels and service-focused net lease retail outlets across 46 states, Puerto Rico, and Canada.
- The company reported FFO of $0.56 per share for the third quarter, surpassing estimates of $0.54. Revenue of $496.82 million beat the estimate of $489.19 million.
- Despite a challenging third quarter that affected its stock price, Service Properties Trust has the potential for strong performance going forward.
These REITs’ resilience and positive financial results in the third quarter indicate their ability to navigate challenges and thrive in the current market environment. Investors are advised to stay informed about these promising opportunities in the evolving real estate landscape.
