5 Value Stocks In The Real Estate Sector

What is a Value Stock?

A value stock traditionally has a lower price when compared to stock prices of companies in the same industry. This indicates that the company may be undervalued, as investors are not expressing as much interest in such companies. The most commonly used way to check for value is with the price-to-earnings multiple, or P/E. A low P/E multiple is a good indication that the stock is undervalued.

The following stocks are considered to be notable value stocks in the real estate sector:

1. Jones Lang LaSalle JLL - P/E: 8.19
2. SL Green Realty SLG - P/E: 8.7
3. Alpine Income Prop Trust PINE - P/E: 8.96
4. Medical Properties Trust MPW - P/E: 5.11
5. Stratus Properties STRS - P/E: 3.39

Jones Lang LaSalle's earnings per share for Q2 sits at $4.48, whereas in Q1, they were at 3.47. Most recently, the company reported a dividend yield of 1.08%, which has increased by 0.51% from last quarter's yield of 0.57%.

SL Green Realty has reported Q3 earnings per share at $1.66, which has decreased by 11.23% compared to Q2, which was 1.87. The company's most recent dividend yield sits at 9.5%, which has increased by 1.55% from 7.95% last quarter.

Alpine Income Prop Trust saw a decrease in earnings per share from 0.47 in Q2 to $0.4 now. Most recently, the company reported a dividend yield of 6.02%, which has increased by 0.08% from last quarter's yield of 5.94%.

Medical Properties Trust saw a decrease in earnings per share from 0.47 in Q1 to $0.46 now. Its most recent dividend yield is at 7.03%, which has increased by 0.84% from 6.19% in the previous quarter.

Stratus Properties's earnings per share for Q2 sits at $0.09, whereas in Q1, they were at 0.23.

The Significance: A value stock may need some time to rebound from its undervalued position. The risk of investing in a value stock is that this emergence may never materialize.