Health-Care REITs Trade at Greatest Premium to NAV

At the other end of the spectrum, the regional mall REIT sector traded at the greatest median discount to NAV.

As of Sept. 30, 2019, publicly listed U.S. equity REITs traded at a median discount to consensus net asset value of 2.79 percent.

The health-care sector traded at the greatest median premium to NAV, at 29.12 percent. The manufactured home and self storage REIT sectors were next in line trading at median premiums to NAV of 28.38 percent and 16.90 percent, respectively.

At the other end of the scale, the regional mall REIT sector traded at a discount of 39.27 percent, currently the greatest median discount to NAV. The hotel REIT sector followed with 17.62 percent median discount to NAV.

At the company level, hotel REIT Community Healthcare Trust Inc. traded at the largest premium to NAV, at 98.88 percent. Right behind were Omega Healthcare Investors, Inc. and Realty Income Corp., trading at premiums of 57.11 percent and 44.65 percent, respectively.

CBL & Associates Properties Inc. traded at the largest discount of all U.S. REITs, at 55.2 percent. Ashford Hospitality Trust, Inc., a hotel REIT and speciality REIT Farmland Partners Inc. , were also at the bottom of the list with large discounts of 46.18 percent and 45.87 percent, respectively.

The U.S. multifamily REIT sector traded at a median premium to consensus net asset value of 4.04 percent as of Sept. 30, 2019.

Within the sector, NexPoint Residential Trust Inc. traded at a premium to NAV of 13.8 percent. Essex Property Trust, Inc. and Equity Residential were next in line at 12.28 percent and 11.45 perent premiums, respectively.

Trading at the greatest discount among multifamily REITs was Bluerock Residential Growth REIT, Inc. at 19.05 percent. Preferred Apartment Communities, Inc. and BRT Apartments Corp. followed, trading at 9.91 percent and 4.2 percent discounts to NAV as of Sept. 30, 2019.

Aftab Alam is a senior associate in the real estate client operations department of S&P Global Market Intelligence.