5 High Dividend REITs Trading Below Book Value Now

5 High Dividend REITs Trading Below Book Value Now

The following real estate investment trusts (REITs) are interesting because each has a balance sheet not too different from those considered desirable in Benjamin Graham’s classic “The Intelligent Investor.” Graham, of course, is considered the father of value investing and was a major influence on Warren Buffett, his student at Columbia University.

All of these REITs are trading at a discount to book value, and all of them are paying some sort of dividend. Of course, there is much more to consider but, as a starting point for the serious long-term investor, these REITs below book and dividends may be worth a look.

Annaly Capital Management Inc. (NYSE: NLY ) is trading at a 1% discount to book value with a price-to-earnings ratio of just 2.42 and is now paying a 14.57% dividend. This is a mortgage real estate investment trust whose assets consist primarily of agency mortgage-backed securities and debentures.

Download the price map for Annaly CapitaI am here:

The price is a fairly wide range from close to $7.80 at the beginning of the year to $5.30 by mid-June. A rally from June to late July took it back up to $7, but then the sell-off started again, bringing the REIT down to $6 before some buyers resurfaced.

Check Out: This Well-Known Small REIT Has Produced Double-Digit Annual Returns For Five Years

City Office REIT Inc. (NYSE: CIO ) trades with a very low price-to-earnings ratio of 1.13 and pays a dividend of 6.9%. The company buys and operates office properties, primarily in the West and Southwest including cities such as Denver, Dallas and Phoenix. City Office is trading at just 66% of its book value.

The daily price chart for the City Office REIT looks like this:

Note the drop from $20.50 at the start of the year to the recent price of $11.63 – a 43% drop in about seven months. The good news for City Office REIT is that, so far, it has held the June low of less than $11.

Cousins ​​Properties Inc. (NYSE:CUZ) trades at a price-to-earnings ratio of 14.14 and is paying a dividend of 4.76%. The company owns, manages and develops rental properties primarily in the Southern United States, primarily in Texas and Georgia. It is available to purchase at a 13% discount on the booking value.

The daily price chart for Cousins ​​Properties looks like this:

That’s a slide from $41 to $26.91 in about 5½ months – a 34% drop in value. The REIT is still flirting with the early September low, which is also the low for the year.

Dynex Capital Inc. (NYSE: DX) trades at 79% of book value with a price-to-earnings ratio of 3.5 and pays a 10.5% dividend. The company invests in residential and commercial mortgage-backed securities — mostly agency-backed securities.

The daily price chart for Dynex Capital looks like this:

This is a big trading range for a real estate investment trust – from just over $13.80 in mid-June up to $16.80 by the end of July before falling to $14.83 in September.

SL Green Realty Corp. (NYSE:SLG) trades at a price-earnings ratio of 10.94 and pays investors a dividend of 7.95%. The company is one of the largest property owners in New York City with an interest in approximately 35 million square feet of Manhattan property. The REIT trades at a 33% discount to book value.

This is the SL Green daily price chart:

Note the significant level of price drop from early in the year to today. The REIT was trading at $81 at the end of March and now trades at $47.87.

There are no guarantees that any dividend yields described in this article will continue as they are. Real estate investment trusts can lower or cut such payments without too much notice.

Looking for high dividend yields without price volatility?

Real estate is one of the most reliable sources of recurring passive income, but publicly traded REITs are just one option for accessing this income-producing asset class. Check out Benzinga’s coverage of private market real estate and find more ways to add cash flow to your portfolio without missing the market or falling victim to wild price swings.

The Latest Private Market Insights:

  • Houses came expanded its offerings to include shares in short-term rental properties with a minimum investment of $100. The platform has already financed over 150 single family rentals valued at over $55 million.

  • The Flagship Property Fund through Get Money up 7.3% year to date and has added a new rental community in Charleston, SC to its portfolio.

Find more news, insights and offers on Benzinga Alternative Investments

Not investment advice. For educational purposes only.

Charts: Courtesy of StockCharts

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