3 Retail REIT Stocks Set To Escape Pandemic-Led Industry Weakness

Simon Property Group currently carries a Zacks Rank #3 (Hold). Over the past month, the Zacks Consensus Estimate for FFO per share for 2021 witnessed upward revision of nearly 1% to $9.66, reflecting analysts’ bullish outlook. The stock has also rallied 33.5% over the past three months.

Agree Realty Corporation: This retail REIT is based in Bloomfield Hills, MI, and is into the acquisition and development of properties net leased to industry-leading retail tenants in e-commerce and recession-resistant sectors. The Zacks #3 Ranked company received February rent payments from more than 99% of its portfolio as of Mar 1, 2021. Encouragingly, February was the sixth consecutive month that the company received at least 99% of all contractual monthly rental obligations. Further, it is 2021 guidance for acquisition volume ranges from $800 million to $1.0 billion of high-quality retail net lease properties.

The Zacks Consensus Estimate for this year’s FFO per share has been revised marginally upward to $3.47 over the past week, indicating a year-on-year improvement of 7.4%. The stock has appreciated 17.8% over the past year.

Urstadt Biddle Properties Inc.: This REIT owns or has equity interests in 81 properties containing approximately 5.2 million square feet of space. Their core properties consist principally of community shopping centers located in the northeast. The company enjoys concentration on quality suburban markets outside New York City. In fact, it has emerged as a well-known grocery-anchored shopping center REIT in the suburban NY Metro Area. Suburban revival due to the pandemic is benefitting its communities. It has a strong tenant base with a focus on grocery-anchored & Internet-resistant tenants. It has paid 204 consecutive quarters of uninterrupted dividends to its shareholders since its inception. Urstadt Biddle currently carries a Zacks Rank of 2 (Buy).

Over the past week, the Zacks Consensus Estimate for FFO per share for fiscal 2021 witnessed upward revisions of 3.1%, calling for an 11.8% increase year on year. The stock has also rallied 24.2% over the past three months.

Note: Funds from operations (FFO) is a widely used metric to gauge the performance of REITs rather than net income as it indicates cash flow from their operations. FFO is obtained after adding depreciation and amortization to earnings and subtracting the gains on sales.

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