Over the last 7 days, the REITS industry has dropped 1.4%, driven by a pullback from Simon Property Group of 3.8%. This takes the industry's 12 month performance to a gain of 28%.
Has the U.S. REITS Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE |
|---|---|---|---|---|
| Sat, 27 Nov 2021 | US$1.6t | US$170.1b | US$27.2b | 46.1x |
| Mon, 25 Oct 2021 | US$1.6t | US$163.5b | US$22.0b | 51.9x |
| Wed, 22 Sep 2021 | US$1.5t | US$163.2b | US$20.9b | 49.5x |
| Fri, 20 Aug 2021 | US$1.5t | US$163.4b | US$20.9b | 51x |
| Fri, 04 Jun 2021 | US$1.4t | US$150.2b | US$16.0b | 48.1x |
| Mon, 08 Mar 2021 | US$1.2t | US$155.1b | US$15.7b | 46.2x |
| Thu, 10 Dec 2020 | US$1.1t | US$146.7b | US$17.9b | 40.5x |
| Wed, 02 Sep 2020 | US$1.1t | US$150.5b | US$21.4b | 36.5x |
| Sat, 06 Jun 2020 | US$1.0t | US$160.5b | US$27.3b | 27.8x |
| Tue, 10 Mar 2020 | US$1.2t | US$167.1b | US$30.6b | 35.6x |
| Mon, 02 Dec 2019 | US$1.2t | US$166.2b | US$30.0b | 39.8x |
| Thu, 05 Sep 2019 | US$1.2t | US$166.1b | US$31.6b | 37.1x |
| Sun, 09 Jun 2019 | US$1.1t | US$165.7b | US$29.5b | 36.9x |
| Sat, 02 Mar 2019 | US$1.1t | US$162.5b | US$29.6b | 33.4x |
| Tue, 04 Dec 2018 | US$1.0t | US$163.2b | US$29.0b | 33x |
33x
Current Industry PE: Investors are relatively neutral on the industry at the moment, considering it's trading close to its 3-year average PE ratio of 39.0x. It appears they believe that earnings will grow in-line with historical growth rates.
Past Earnings Growth: The earnings for companies in the REITs industry have declined 2.2% per year over the last three years, while revenues have remained mostly flat. This means that although sales have remained flat, either the cost of doing business or the level of investment back into businesses has increased, which has decreased profits.
Which industries have driven the changes within the U.S. REITS industry?
| Specialized REITs | -0.47% | |
| Residential REITs | -0.57% | |
| Industrial REITs | -0.72% | |
| Diversified REITs | -1.56% | |
| Healthcare REITs | -2.36% | |
| Retail REITs | -3.04% | |
| Office REITs | -3.15% | |
| Hotel and Resort REITs | -4.80% | |
Industry PE: Investors are most optimistic about the Residential REITs industry, which is trading close to its 3-year average PE ratio of 60.5x. However analysts are expecting annual earnings growth of 8.2%, which is lower than the prior year's growth of 18% per year. So the market might believe that analysts are underestimating future growth. Meanwhile, investors are most pessimistic about the Office REITs industry. Although, investor sentiment seems to have improved given its trading above its 3-year average of 31.0x.
Forecasted Growth: Analysts are most optimistic on the Hotel and Resort REITs industry, expecting annual earnings growth of 84% over the next 5 years. Meanwhile, the Industrial REITs industry is expected to see its earnings growth to stay flat over the next few years.
Which companies have driven the market over the last 7 days?
| Company | 7D | 1Y | Valuation | |
|---|---|---|---|---|
| AMT American Tower | 0.7%+US$860.7m | 12.3% | PB22.1x | |
| DBRG DigitalBridge Group | 7.1%+US$709.6m | 85.8% | PB4.4x | |
| SBAC SBA Communications | 1.8%+US$659.2m | 22.9% | PE129.7x | |
| EQIX Equinix | 0.7%+US$478.1m | 13.3% | PB6.8x | |
| WY Weyerhaeuser | 1.0%+US$284.6m | 33.8% | PB2.8x |
