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There has been much anticipation regarding the quarterly reports from Real Estate Investment Trusts (REITs) after many of these stocks were trampled earlier in the year following the collapse of Silicon Valley Bank.
Banking fears and inflationary risks spilled over to the broader financial sector making many REIT stocks attractive near their 52-week lows for income-seeking investors.
This along with exposure and diversification to various real estate assets has quite a few REITs worthy of consideration at the moment and here are a few to consider.
AGNC Investment (AGNC)
Standing out with a Zacks Rank #1 (Strong Buy) is AGNC Investment whose stock has started to rebound in the last three months. AGNC was able to top earnings expectations on Monday with EPS at $0.67 (net spread and dollar roll income excluding premium amortization cost) compared to estimates of $0.58 a share.
Focused on residential mortgage-backed assets (RMBS) another highlight for AGNC was its 3.6% economic return on tangible common equity for the quarter climb swinging from a loss of -10% in Q2 2022.
Image Source: Zacks Investment Research
AGNC notably has an “A” Zacks Style Scores grade for Momentum and has maintained a very lucrative monthly dividend yield which is currently at 13.85%. This tops the Zacks REIT and Equity Trust Industry average of 11.25% and towers above the S&P 500’s 1.39% average.
Trading 18% from its 52-week highs, AGNC stock is up +10% since May and has risen +15% when including dividends. CEO Peter Federico remains optimistic going forward stating the company is at the forefront of one of the most constructive investment environments in its 15-year history, driven by historically attractive asset valuations, strong funding markets, and gradually improving hedging conditions as the Fed’s tightening campaign concludes.
Image Source: Zacks Investment Research
Blackstone Mortgage Trust (BXMT) Focusing on loans and securities backed by commercial real estate assets, Blackstone Mortgage stock sports a Zacks Rank #2 (Buy) and beat Q2 earnings expectations by 14% on Wednesday causing shares to spike +5%.