Editor's note: This Data Dispatch is updated monthly and was last published June 3. 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 closed the first trading day in July at a 19.4% discount to their consensus S&P Capital IQ net asset value per-share estimates, a 4.7-percentage-point decline from the 14.7% discount at which they traded as of May-end.
Regional malls saw biggest median discount
Regional mall REITs continued to trade at the steepest median discount to NAV, at 50.9%. Within this sector, Macerich Co. traded at a discount of 63.4%, making it the second-largest discount to NAV among all U.S. equity REITs with above $200 million market capitalization. Simon Property Group Inc., the largest mall REIT by market capitalization, also traded at a huge discount of 38.4%.
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The office sector also traded at a large discount next to the regional mall sector, at a median of 42.6%. Office REIT Hudson Pacific Properties Inc. closed July 1 at $15.30, 63.6% lower than its consensus NAV estimate of $42.07, the largest discount to NAV among all U.S. equity REITs with above $200 million market capitalization. Other office REITs included in the list of top overall discounts were Office Properties Income Trust at 59.3%, Paramount Group Inc. at 53.5% and SL Green Realty Corp. at 53.3%.
Farmland, communications, casino got median premiums
The farmland segment was still leading the premium list, trading at a median of 9.8%. Land owner Gladstone Land Corp., single-handedly lifted the farmland sector's median, trading at a premium of 21.2%, the fourth-largest premium among all U.S. equity REITs above $200 million market capitalization. On the other hand, farmland owner Farmland Partners Inc. traded at a discount of 1.5%, closing July 1 at $13.74.
Communication REITs came in second at a median premium of 6.8%, followed by the casino sector at 3.7%.
Multifamily-focused Bluerock Residential Growth REIT Inc. topped the list of REITs with the highest premiums across all sectors, trading at 31.4%. Healthcare REITs Welltower Inc. and LTC Properties Inc. followed, trading at premiums of 28.7% and 23.5%, respectively.