Real estate investment trusts (REITs) are an attractive investment option for many investors due to their potential for stable dividends and capital appreciation. The performance of a stock is often influenced by its quarterly earnings reports, and investors closely monitor these reports to determine whether a stock is worth investing in or not. In this blog post, we will take a closer look at three REITs that recently reported strong earnings and improved performance from the same quarter of the previous year.
Blackstone Mortgage Trust Inc. (NYSE: BXMT) is a mortgage REIT based in New York City that specializes in originating senior loans with commercial properties as collateral. The company's first-quarter 2023 operating results showed that its adjusted earnings per share (EPS) of $0.79 beat analyst estimates for $0.74 and were a 27.42% increase over EPS of $0.62 in the first quarter of 2022. The company's first-quarter revenue of $174.19 million was also above estimates of $170.4 million and represented a 30.27% increase over revenue of $155.72 million in the first quarter of 2022.
American Assets Trust Inc. (NYSE: AAT) is a diversified REIT based in San Diego that owns and manages office, retail, and residential properties throughout the U.S. In the first quarter of 2023, the company reported funds from operation (FFO) of $0.66, which beat the Street's view of $0.56 by 17.8% and was 15.7% better than FFO of $0.57 in the first quarter of 2022. The company's revenue of $107.75 million also beat the estimate for $103.39 million and was 6.19% better than $101.47 million in the first quarter of 2022.
Eastgroup Properties Inc. (NYSE: EGP) is an industrial REIT based in Ridgeland, Mississippi, that primarily operates in the Southeastern states and the West Coast of the U.S. In the first quarter of 2023, the company reported FFO of $1.84 per share, a 9.52% increase from $1.68 per share in the first quarter of 2022, and $0.03 better than the estimates. The company's revenue of $135.03 million beat the estimates by $1.98 million and was a 19.5% increase over revenue of $112.97 million in the first quarter of 2022.
While investors should consider other financial aspects of each stock before making any purchases, strong earnings reports are a good starting point in the decision-making process. It's worth noting that private market real estate investments have outperformed the publicly traded REIT market by about 50% over the past five years. This makes it worthwhile to explore passive real estate investments through Benzinga's Real Estate Offering Screener.
In conclusion, these three REITs have reported strong earnings and improved performance from the same quarter of the previous year. As always, investors should conduct their due diligence and consider other factors before investing. However, these strong earnings reports are a positive sign for the long-term potential of these companies.
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