Real estate investment trusts (REITs) continue to weaken, with a number of them hitting new 12-month lows.
These reflect the negative effects on the market of the higher interest rates that the Federal Reserve is pursuing. Other factors are at work, but this is a rate-sensitive group and they’re feeling the pain.
Here are three New York Stock Exchange (NYSE)-traded REITs making the new lows lists lately:
Clipper Realty Inc. CLPR is a diversified real estate investment trust focused entirely on properties in New York. It’s one of the smaller NYSE-listed REITs with a market capitalization of $101 million.
Average daily volume is 38,900 shares. This year’s funds from operations dropped by 68% with the past five-year record at negative 8.6%. The company pays a dividend of 6.14%.
Granite Point Mortgage Trust Inc. GPMT focuses on senior, floating-rate commercial mortgage loans and, according to its website, “other debt and debtlike commercial real estate investments.” With a market capitalization of $279 million, the REIT is now trading at 28% of its book value.
The company pays a 15.04% dividend, which may be tough to sustain given the present rate environment. Funds from operations (FFO) this year increased by 267%. The past five-year FFO growth rate is 8.5%.
Orion Office REIT Inc. ONL has a market capitalization of $477 million and now trades at about half its book value. The short float for the REIT is 10.53%, indicating that short sellers are not crazy about future prospects for the company. Should they be mistaken, a short covering rally at some point could be dramatic — emphasis on the “could be.” Orion is paying a dividend of 4.74%.
Orion Office started the year at $18 and now trades at $8.43 for a 53% drop in value.
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