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A jump from year-end discount — US REITs trade at a premium to NAV of 8.4%

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A jump from year-end discount — US REITs trade at a premium to NAV of 8.4%

Editor's note: For comparisonreasons, all figures in this article represent data calculated for publiclytraded U.S. equity REITs with at least three NAV-per-share estimates andpricing data as of Dec. 31, 2015, and July 6, 2016. Click to view these charts in Excelformat.

Publiclytraded U.S. equity REITs with at least 3 NAV estimates posted a weightedaverage premium to NAV of 8.4% as of July 6, representing an11.3-percentage-point swing from the end of 2015, when REITs traded at an NAVdiscount of 2.9%. Driving the increase was a year-to-date 12.7% rise in theweighted average price, while REITs saw an approximately 0.7% weighted averageupswing in consensus NAV estimates.

, a regional mall REIT, traded at the largest discount toNAV as of July 6, at 48.7%, while single-tenant REIT traded at thelargest premium to NAV, at 59.8%.

Theoffice sector traded at the largest discount to NAV as of July 6, at 10.94%,followed closely by the hotel sector, at 10.87%. The office sector's weightedaverage price has risen 5.1% in the year so far, while experiencing a 1.1%increase in weighted NAV year-to-date.

 traded at the largest discount to NAV in the officesector as of July 6, at 27.5%, while Highwoods Properties Inc., one of six REITs in thesector trading at a premium, led the sector at a premium to NAV of 14.4%.

The"other" retail sector, comprising single-tenant and outlet centerREITs, among others, traded at the largest premium to NAV, at 45.7%.Year-to-date, this sector saw a weighted average increase in price of 33.7%,while also seeing a 3.0% increase in its weighted average NAV estimate. As ofJuly 6, all five publicly traded U.S. "other" retail REITs with atleast 3 NAV estimates traded at a premium to NAV, with Realty Incometrading at the largest premium and Tanger Factory Outlet Centers Inc. trading at the lowestpremium, at 7.7%.

DiversifiedREIT Gramercy Property Trust Inc. saw the greatestimprovement in its premium to NAV estimate year-to-date, with a57.0-percentage-point increase. During the year so far, Gramercy has seen a22.3% increase in its price, while its consensus NAV estimate has dropped by43.4%. Gramercy traded at a premium to NAV of 6.2% as of July 6, while ittraded at a 50.9% discount to NAV at the end of 2015.

, an office REIT,has experienced a 15.6-percentage-point increase in its discount to NAVestimate year-to-date, the largest drop among all U.S. equity REITs. New YorkREIT witnessed a 3.0% decrease in its consensus NAV estimate, while its pricefell by 19.7%.

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For additional country and sector NAV dissection, try SNL's Global NAV Analysis Excel template, as well as other real estate templates that can be found in the template library.