Picking A Winner In Industrial REITs

May 18, 2023 9:00 AM ET, , , , , , , , , , , 24 Comments

Summary

  • Demand for Industrial REIT space continues to substantially outpace supply, resulting in astonishing rental spreads averaging over 40%, while occupancy rates and same-store NOI have reached record highs.
  • The five major industrial REITs raised full-year guidance this quarter, growing FFO much faster than the next closest major property sector.
  • Industrial REITs are more "expensive" than the average REIT, and pay lower initial dividends, but grow their dividends much faster than average.
  • This article examines 11 Industrial REITs, to single out the one company best poised to deliver outperformance over the next 2 to 5 years.
  • Looking for a portfolio of ideas like this one? Members of Hoya Capital Income Builder get exclusive access to our subscriber-only portfolios. Learn More »

Empty warehouse in logistic center.

Vanit Janthra

Demand for warehouse space continues to substantially outpace supply, resulting in astonishing leasing spreads averaging over 40%.

Prologis Research projects that completions of 455 msf (million square feet) of industrial space in 2023 will handily outstrip absorptions of 275

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This article was written by

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Philip Eric Jones is a financial writer, educator, artist, and inspirational speaker. He writes about investing for retirement with a focus on Growth stocks and REITs.

He is a contributor to the investing group iREIT®+HOYA Capital. The service features a team of analysts focusing on real income-producing asset classes that offer the opportunity for reliable income, diversification, and inflation hedging. Learn More.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of PLD, REXR, EGP, FR, TRNO, STAG, PLYM either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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SymbolLast Price% Chg
COLD--
Americold Realty Trust, Inc.
EGP--
EastGroup Properties, Inc.
FR--
First Industrial Realty Trust, Inc.
ILPT--
Industrial Logistics Properties Trust
INDT--
INDUS Realty Trust, Inc.

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