Camden owns interests in and operates 167 properties containing 56,850 apartment homes across the United States. Upon completion of seven properties currently under development, the company’s portfolio will increase to 59,104 apartment homes in 174 properties.
Investors receive a 2.98% dividend. The target price on Camden Property Trust stock at Truist Financial is $160. The consensus target is $175.75, and the final trade for Wednesday was reported at $128.55 a share.
CubeSmart
This REIT may seem an odd beneficiary of rising rates, but it should benefit. CubeSmart (NASDAQ: CUBE) is a self-administered, self-managed REIT. Its self-storage properties are designed to offer affordable, easily accessible and secure storage space for residential and commercial customers. According to the Self-Storage Almanac, CubeSmart is one of the top three owners and operators of self-storage properties in the United States.
In a rising rate environment, hard assets like real estate gain in value, and the self-storage REITs are also in a good position as capital expenditures and the need for additional capital are often very low.
Shareholders receive a 4.38% dividend. Raymond James has set a $52 target price. The consensus target for CubeSmart stock is $54.78. The stock was last seen on Wednesday trading at $40.37.
Essex Property Trust
This stock has been hammered, but it is an outstanding way for investors looking to add an inflation-busting real estate position to growth and income portfolios. Essex Property Trust Inc. (NYSE: ESS) is a fully integrated REIT that acquires, develops, redevelops and manages apartment communities in selected West Coast markets.
This S&P 500 company and Dividend Aristocrat has ownership interests in 246 apartment communities comprising approximately 60,000 homes, with an additional six properties in various stages of active development.
Shareholders receive a 3.25% dividend. The $323 Truist Financial price objective compares with the $347.38 consensus target. Essex Property Trust stock closed at $257.23 on Wednesday.
Equity Residential
This apartment REIT company owns properties in high-growth U.S. cities. Equity Residential Inc. (NYSE: EQR) is an S&P 500 company focused on the acquisition, development and management of high-quality apartment properties in top U.S. growth markets in and around dynamic cities that attract high-quality long-term renters.
The company owns or has investments in 305 properties, consisting of 78,568 apartment units, located in Boston, New York, District of Columbia, Seattle, San Francisco, Southern California and Denver.
The company posted fourth-quarter 2021 normalized funds from operations (FFO) that exceeded the Wall Street consensus estimate. Rental income of $645.1 million also topped the consensus projection. Year over year, normalized FFO per share improved 7.9%, while rental income rose 5.2%, as the market has stayed very strong. Results were driven by outstanding physical occupancy, a substantial improvement in pricing power and an increase in nonesidential revenues.
Equity Residential stock comes with a 3.61% yield. The BofA Securities target price of $91 is slightly higher than the $89.36 consensus target. The stock closed on Wednesday at $69.15.
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