Top 5 Performing REITs of Q3
REITs are staying afloat despite market turbulence and a pending interest rate hike. As we near the end of the '16 season, here are top five performing REIT in Q3.
1. SL Green Realty
Q3 earnings per share: $1.64
CEO: Marc Holliday
Key assets: Daily News Building & 388 Greenwich St.
NYC’s largest office landlord comes in first on the list of Q3 winners. This REIT focuses almost exclusively on Manhattan commercial properties and recently completed the sale of two properties for $649M.
2. AvalonBay Communities
Q3 earnings per share:$1.53
CEO: Timothy Naughton
Key asset: 2950 Van Ness St. NW, DC
This massive REIT from Arlington, VA manages more than 170 multifamily communities in US markets and focuses on high-barrier-to-entry units. Unlike SL Green, AvalonBay has been very cautious about entering the NYC market due to housing supply and cost concerns.
3. Simon Property Group
Q3 earnings per share: $1.36
CEO: David Simon
Key assets: Premium Outlets & The Mills
It isn’t surprising to see Simon Property high on the list—this REIT owns over 240M SF of leasable retail space in North America and Asia. It's one of the top shopping center developers in the US and its malls and outlets recorded releasing spreads of $11/SF, an increase of 18.4%.
Q3 earnings per share: $1.20
CEO: Mortimer Zuckerman
Key assets: NYC General Motors Building
Headed by the owner of US News & World Report, this REIT has recently been wary of a pipeline of real estate in the market that may test pricing levels for assets going forward. Boston Properties focuses on having high leasing percentages, with 91.3% of its total portfolio under lease.
5. Equity Residential
Q3 earnings per share: $0.54
CEO: David Neithercut
Key assets: Prism at Park Avenue
After selling off 23,200 apartments earlier this week to Starwood Capital Group for $5.37B, Neithercut said, “We were looking at a challenging market” and will “redeploy that capital going forward.” Equity Residential has recently focused on selling exterior properties and purchasing apartments in high-density coastal markets, emphasizing Seattle, San Francisco, Southern California, Boston, NYC and DC.