Overview Of Value Stocks In The Real Estate Sector

What Defines 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. SL Green Realty SLG - P/E: 7.94
2. Redwood Trust RWT - P/E: 5.48
3. Arbor Realty Trust ABR - P/E: 8.25
4. MFA Finl MFA - P/E: 8.45
5. Cedar Realty Trust CDR - P/E: 6.46

SL Green Realty has reported Q3 earnings per share at 1.78, which has increased by 11.25% compared to Q2, which was 1.6. The company's most recent dividend yield sits at 4.89%, which has decreased by 0.45% from 5.34% last quarter.

This quarter, Redwood Trust experienced a decrease in earnings per share, which was 0.66 in Q2 and is now 0.65. Most recently, the company reported a dividend yield of 6.85%, which has increased by 0.84% from last quarter's yield of 6.01%.

Most recently, Arbor Realty Trust reported earnings per share at 0.47, whereas in Q2 earnings per share sat at 0.45. Most recently, the company reported a dividend yield of 7.22%, which has decreased by 0.51% from last quarter's yield of 7.73%.

MFA Finl has reported Q3 earnings per share at 0.17, which has increased by 30.77% compared to Q2, which was 0.13. The company's most recent dividend yield sits at 8.73%, which has increased by 0.07% from 8.66% last quarter.

This quarter, Cedar Realty Trust experienced an increase in earnings per share, which was 0.61 in Q2 and is now 0.63. Most recently, the company reported a dividend yield of 1.2%, which has decreased by 0.47% from last quarter's yield of 1.67%.

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.