NAV Monitor: US equity REITs end December 2022 at 20.8% discount to NAV

Editor's note: This Data Dispatch is updated monthly and was last published Dec. 5, 2022. The analysis includes current publicly traded U.S. equity real estate investment trusts that trade on the Nasdaq, NYSE or NYSE American with market capitalizations of at least $200 million. Click here to download these charts in Excel format.

Publicly listed U.S. equity REITs traded at a median 20.8% discount to their consensus S&P Capital IQ net asset value per-share estimates as of Dec. 30, 2022, up from the 16.6% discount at the end of the previous month.

Largest discounts

December 2022 marked the sixth consecutive month of office REITs trading at the largest discount to NAV, at 48.3%. Of the 10 REITs on the overall biggest discount list, eight were office REITs.

Hudson Pacific Properties Inc. traded at a 67.6% discount to NAV, the steepest within the office sector and the second-largest among all U.S. equity REITs above $200 million in market capitalization.

Office REIT Office Properties Income Trust ranked No. 4 on the top 10 discount ranking, trading at a discount of 57.4%, followed by Piedmont Office Realty Trust Inc. at a discount of 57.2%.

* Download an Excel template with data featured in this story. * Click here to set email alerts for future Data Dispatch articles. * Read some of the day's top real estate news and insights from S&P Global Market Intelligence.

The hotel sector traded at the second-biggest median discount, at 33.5% below NAV, with Park Hotels & Resorts Inc. trading at the largest discount of 51.2%.

Regional mall REITs traded at 29.2% below NAV, representing the third-largest median discount. Regional mall owner Macerich Co. booked the largest discount among such REITs as it closed the trading day at 44.9% below its consensus NAV estimate.

Industrial REIT Industrial Logistics Properties Trust traded at the largest discount to NAV among all U.S. equity REITs in the analysis, closing Dec. 30, 2022, at $3.27, 82.7% below its consensus NAV estimate of $18.89 per share.

Largest premiums

The casino sector nabbed the top post on the median premiums to NAV list, trading at 9.1%, followed by the communications segment at a 6.6% premium.

VICI Properties Inc. was the only casino REIT on the top 10 premium ranking, trading at 10.2% above its consensus NAV estimate. Communications REIT American Tower Corp. recorded the largest premium across all U.S. equity REITs included in the analysis, at 23.2%.

Retail REIT Agree Realty Corp. traded at a premium of 17.8%, claiming the second spot on the list. Healthcare-focused Community Healthcare Trust Inc. ranked third as it closed the trading day at 14.5% above its consensus NAV estimate.