2018 REIT Values

REIT industry earnings multiple (P/E ratio in other sectors), cycling among other REIT subcategories.

SNL U.S. REIT Index Price/LTM FFO [x]

As of March 29, 2018.
Source: S&P Global Market Intelligence

As of March 29, the Manufactured Homes sector led all publicly traded U.S. Equity REIT sectors with the largest last 12 months funds from operations (LTM FFO) multiple, at 23.9x, outperforming the SNL US REIT Equity Index by 4.5 points. The Industrial and Self-Storage REIT sectors followed with multiples of 20.6x and 20.0x, respectively. The Hotel sector ranked last with a 10.1x price to LTM FFO. Among the Manufactured Homes-focused REITs, Equity LifeStyle Properties had the highest multiple of 24.7x, and ended March with $87.77 price per share. Invitation Homes Inc., a single-family housing REIT, had a 45.7 LTM FFO multiple, the highest among the publicly traded U.S. Equity REITs, and its common stock traded at $22.83 price per share as of March 29. American Tower Corp. followed with 35.4x price to LTM FFO, while closing the trading day at $145.34 price per share.

The Multifamily sector had an 18.8x last 12 months FFO multiple as of March 29, outperforming six other REIT sectors.

NexPoint Residential Trust led the multifamily-focused REITs with 21.2x LTM FFO multiple, closing the trading day at $24.84 price per share. Essex Property Trust followed with 20.2x LTM FFO while trading at $240.68 price per share. At the other end of the spectrum, Preferred Apartment Communities had the smallest price to LTM FFO multiple, at 10.8x. The company ended March at $14.19 price per share.

Khamile Armhynn Sabas is an associate in the real estate product operations department of S&P Global Market Intelligence.

—Posted on April 18, 2018