Industrial, Self-Storage REITs Performing Well
- Aug 02, 2017
As of July 28, 2017, the manufactured homes sector led all publicly traded U.S. equity REIT sectors in terms of the last 12 months’ funds from operations (LTM FFO) multiple. The said sector posted a 25.8x LTM FFO multiple, outperforming the SNL US REIT Equity Index by 6.21 points. The industrial and multifamily REIT sectors followed with 22.5x and 21.9x, respectively. The hotel sector ranked last with a 11.1x price to LTM FFO.
Among the REITs focused on manufactured homes, Sun Communities Inc. had the highest multiple, at 26.2x, and finished July 28 with an $89.60 price per share.
Global Self Storage Inc., a self-storage REIT, had a 40.8x price to LTM FFO, the highest among the publicly traded U.S. equity REITs, and traded at a $4.90 price per share as of July 28. Equinix Inc., a data center REIT, followed with a 39.8x LTM FFO multiple, trading at a $447.90 price per share.
Khamile Armhynn Sabas is an analyst in the real estate product operations department of S&P Global Market Intelligence.