These 3 REITs Are Diving To New 12-Month Lows

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. 

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 been working hard to identify the greatest opportunities in today’s market, which you can gain access to for free by signing up for Benzinga’s Weekly REIT Report.

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