Related – US Home Prices Rise: Time to Invest in REITs?
Additionally, despite showing earnings that declined year-over-year, Ventas Inc (NYSE: VTR) reported adjusted earnings of $1.03 per share, compared to expectations of $0.43 per share. VTR shares surged 8.2%.
Real Estate Investment Trust Segment Keeps Strengthenening
The real estate investment trust segment may also be strengthening as bargain hunters look at the cheap valuations in the sector. The REITs sector has lagged behind the S&P 500 by over 15 percentage points over the past 12 months and are now trading on average a 16.4% discount to the assets they own, one of the widest gaps that has ever occurred outside of a recession, Ken Brown reports for the Wall Street Journal.
“There’s a big pile of private capital that wants to own real estate and a big pile of real estate trading at a discount,” Jonathan Litt, the chief investment officer of Land & Buildings told the WSJ.
For more information on real estate investment trusts, visit our REITs category.