The 4 Best-Performing REITs in December – AGNC Investment (NASDAQ:AGNC), Braemar Hotels & Resorts (NYSE:BHR)

Evaluating relative strength is important when deciding which stocks to buy. Relative strength indicates which sectors or individual issues outperform market peers. In general, 2022 was a terrible year for the stock market, with rising interest rates and fears of a recession leaving most real estate investment trusts (REITs) faring poorly.

However, some relative strengths are beginning to emerge within the REIT universe, and income investors looking to 2023 would be wise to consider the REITs that have shown the most relative strengths recently. .

With that in mind, let’s take a look at the four best-performing REITs in December. The group’s recent performance could put them at the forefront of the profitable class in 2023.

Braemar Hotels & Resorts BHRMore A Dallas-based REIT that invests in luxury hotels and resorts across the United States and Puerto Rico. Braemar Hotels & Resorts currently invests in 17 properties with over 4,200 rooms.

Braemar Hotels & Resorts has performed very poorly in the first 11 months of 2022, losing 31% of its value. However, it rebounded strongly this month, rising 11.41% to put him ahead of all his REITs in December.

A key driver of the price increase was Braemar Hotels & Resorts’ announcement of a share buyback program of up to $25 million. In addition, the board gave shareholders an early holiday gift when he announced that he would raise the quarterly dividend from $0.01 to $0.05 per share. Braemar Hotels & Resorts also announced that it has completed the acquisition of Four Seasons Resort Scottsdale at Troon North Golf Club in Scottsdale, Arizona.

AGNC Investment Co., Ltd. AGNC is a Bethesda, Maryland-based mortgage REIT (mREIT) that invests in U.S. government-insured pass-through and mortgage-backed securities. The monthly dividend he paid is $0.12 per share, and the annual dividend of $1.44 yields 13.7% of the recent closing price.

Despite analyst downgrades in December from Sachs Investment Research and Ford Equity Research, and Jim Cramer’s negative comments about “mad money,” AGNC Investment Corporation is still up 4% this month. It rose, followed by a 21% gain. November after better-than-expected third-quarter earnings report.

One of the reasons for the price increase is that billionaire Bond King Bill Gross bought a stake in AGNC, Annalee Capital Management Co., Ltd. NLY.

Getty Realty Corporation GTY is a retail REIT based in Jericho, New York that specializes in owning, leasing and financing 1,021 independent automotive properties across 38 states and Washington, DC.

Nearly three-quarters of Getty Realty’s properties are gas stations and convenience stores. The other 12% are car washes, 11% are auto repair shops, and the rest are auto service and auto parts stores. Occupancy was 99.6% at the end of the third quarter.

Getty Realty has been in tears in recent months after a strong third-quarter performance and an increase in its annual dividend from $1.58 to $1.72 in 2022.

Getty Realty shares rose 3.02% in December.

Realty Income Co., Ltd. is a San Diego-based retail REIT that owns and operates more than 11,400 commercial properties worldwide with long-term net lease agreements where tenants bear the majority of operating costs such as taxes, insurance and maintenance. is tied

Realty Income’s tenant list includes Walgreens Co., Dollar General Corporation DG, FedEx Corporation FDX When dollar tree DLTRInvestors know that even if 2023 were to hit a deep recession, these companies would have no problem paying rent. As of the third quarter, Realty Income’s rent recovery rate for investment grade tenants was 99.9%.

Realty Income is one of 65 companies in the S&P 500 Dividend Aristocrats and has increased its dividend for at least 25 consecutive years.

Realty Income’s share price was boosted this month by the news that Gregory J. White was appointed executive vice president and chief operating officer effective January 3. Additionally, Realty Income declared its 628th consecutive monthly dividend, raising the dividend from $0.248 to $0.2485 per share. share.

Property income rose 1.94% in December and looks set to continue its success into 2023 this month.

Weekly REIT Report: REITs are one of the most misunderstood investment options, making it difficult for investors to spot incredible opportunities until it’s too late. Benzinga’s in-house real estate research team has worked hard to identify the biggest opportunities in today’s market. This can be accessed for free by signing up for Benzinga’s Weekly REIT Report.

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