Real Estate Sector Report
Market Cap: $2.1T
Stocks: 348
Median P/E: 18.9x
Median ROIC: 4.8%
Data sourced from SEC EDGAR filings. Report refreshed weekly.
The Real Estate sector comprises Real Estate Investment Trusts (REITs) and real estate management companies across property types including residential, commercial, industrial, and specialty. REITs are required to distribute at least 90% of taxable income, resulting in higher-than-average dividend yields. The sector is interest-rate sensitive, with property valuations inversely correlated to long-term rates.
Performance Dashboard
| Period | Sector (MCW) | Sector (Median) |
|---|---|---|
| 1 Day | +0.1% | 0.0% |
| 1 Week | -0.7% | -0.0% |
| 1 Month | — | — |
| 3 Months | — | — |
| 6 Months | — | — |
| YTD | +0.8% | +0.2% |
| 1 Year | +10.6% | +4.7% |
| 3 Years | +52.9% | +13.7% |
| 5 Years | +53.4% | +6.8% |
Today's Breadth: 133 advancing · 130 declining · 27 flat
Valuation Summary
| Metric | Median | P25 | P75 | vs 5Y Avg |
|---|---|---|---|---|
| P/E | 18.9x | 8.4x | 29.3x | -15% |
| P/B | 1.0x | 0.6x | 1.8x | -13% |
| P/S | 3.7x | 0.9x | 7.5x | — |
| P/FCF | 12.3x | 7.3x | 19.3x | — |
| EV/EBITDA | 13.5x | 8.8x | 18.7x | — |
| EV/EBIT | 21.5x | 14.1x | 30.3x | — |
Earnings Yield
4.7%
FCF Yield
6.1%
Below Fair Value
33% of stocks
Profitability Profile
Margins
| Metric | Median | 5Y Avg | P25 | P75 |
|---|---|---|---|---|
| Gross Margin | 43.0% | 43.5% | 24.1% | 64.8% |
| Operating Margin | 19.5% | — | 3.3% | 42.1% |
| Net Margin | 9.5% | 7.3% | -3.7% | 33.0% |
| FCF Margin | 20.4% | — | 7.0% | 46.3% |
Returns on Capital
| Metric | Median | 5Y Avg | P25 | P75 |
|---|---|---|---|---|
| ROE | 4.8% | — | -2.1% | 8.7% |
| ROA | 1.1% | — | -0.8% | 3.6% |
| ROIC | 4.8% | 3.9% | 1.2% | 8.1% |
Growth Metrics
| Metric | 1Y | 3Y CAGR | 5Y CAGR |
|---|---|---|---|
| Revenue | +4.7% | +4.7% | +6.5% |
| EPS | +32.4% | -3.0% | +9.2% |
| Free Cash Flow | +4.2% | +1.5% | +4.0% |
All values represent sector median growth rates.
Balance Sheet Health
Debt / Equity
0.7x
Net Debt / EBITDA
4.0x
Interest Coverage
1.5x
Current Ratio
1.1x
Altman Z-Score
Safe (>3): 16 (5%)
Gray (1.8–3): 34 (10%)
Distress (<1.8): 286 (85%)
Piotroski F-Score
Strong (7–9): 24 (7%)
Moderate (4–6): 222 (64%)
Weak (0–3): 99 (29%)
Top Companies
| Symbol | #▲ | Mkt Cap | P/E | EV/EBITDA | ROIC | Net Mgn | Rev Gr. | Div Yld | YTD | Qual. |
|---|---|---|---|---|---|---|---|---|---|---|
| WELL | 1 | $139.5B | 134.7x | 36.1x | 3.6% | 8.6% | +35.6% | 1.5% | +3.4% | 1/9 |
| PLD | 2 | $128.0B | 36.1x | 21.9x | 4.9% | 37.8% | +7.2% | 0.0% | +1.0% | 1/9 |
| EQIX | 3 | $103.7B | 55.2x | 18.9x | 11.6% | 14.7% | +5.4% | 2.5% | +0.6% | 5/9 |
| AMT | 4 | $84.8B | 32.4x | 17.1x | 9.4% | 23.8% | +5.1% | 3.9% | +2.9% | 3/9 |
| DLR | 5 | $67.9B | 43.3x | 19.3x | 3.9% | 20.7% | +10.0% | 3.1% | -0.0% | 3/9 |
| SPG | 6 | $65.5B | 13.3x | 18.6x | 11.2% | 72.7% | +6.7% | 4.5% | +1.6% | 4/9 |
| HEIMAR-IC | 7 | $62.3B | 8.1x | — | — | 55.5% | +6.8% | — | — | 1/9 |
| O | 8 | $57.3B | 48.0x | 16.0x | 3.3% | 18.4% | +9.1% | 5.7% | -1.4% | 1/9 |
| PSA | 9 | $52.1B | 28.9x | 18.3x | 10.2% | 32.9% | +2.7% | 4.6% | -3.9% | 4/9 |
| PLDGP | 10 | $48.9B | 15.9x | 12.2x | 4.9% | 37.8% | +7.2% | 7.1% | +0.2% | 5/9 |
| CBRE | 11 | $43.9B | 42.8x | 20.9x | 12.1% | 2.9% | +13.4% | — | +3.4% | 3/9 |
| VTR | 12 | $39.3B | 146.6x | 27.5x | 2.3% | 4.3% | +18.5% | 2.4% | +2.1% | 1/9 |
| CCI | 13 | $38.3B | 87.4x | 23.8x | 7.5% | 10.4% | -4.4% | 5.4% | +2.1% | 3/9 |
| IRM | 14 | $33.0B | 167.3x | 21.3x | 5.8% | 2.1% | +12.2% | 3.9% | +0.5% | 2/9 |
| VICI | 15 | $30.1B | 10.8x | 12.7x | 8.3% | 69.3% | +4.1% | 6.3% | -0.2% | 3/9 |
| EXR | 16 | $29.7B | 28.5x | 14.1x | 8.3% | 28.8% | +3.7% | 5.0% | -1.3% | 4/9 |
| AGNCN | 17 | $26.0B | 17.1x | — | — | — | — | 5.7% | +0.0% | 2/9 |
| AGNCZ | 18 | $25.8B | 17.0x | — | — | — | — | 5.8% | -0.1% | 2/9 |
| AGNCO | 19 | $25.7B | 17.0x | — | — | — | — | 5.8% | -0.3% | 2/9 |
| AGNCP | 20 | $25.0B | 16.7x | — | — | — | — | 5.9% | 0.0% | 3/9 |
Industry Composition
| Industry | Stocks | Market Cap | % | |
|---|---|---|---|---|
| Real Estate Investment Trusts | 232 | $1.8T | 84.3% | |
| Real Estate - Services | 7 | $76.8B | 3.6% | |
| Real Estate | 29 | $75.9B | 3.5% | |
| Real Estate Agents & Managers (For Others) | 10 | $44.4B | 2.1% | |
| REIT - Office | 8 | $38.3B | 1.8% | |
| Real Estate - Development | 9 | $26.3B | 1.2% | |
| REIT - Industrial | 5 | $22.2B | 1.0% | |
| Real Estate Operators (No Developers) & Lessors | 3 | $16.5B | 0.8% | |
| REIT - Retail | 9 | $11.9B | 0.6% | |
| REIT - Diversified | 6 | $10.6B | 0.5% | |
| Land Subdividers & Developers (No Cemeteries) | 6 | $4.4B | 0.2% | |
| REIT - Hotel & Motel | 1 | $3.6B | 0.2% | |
| Lessors Of Real Property, Nec | 9 | $2.8B | 0.1% | |
| REIT - Healthcare Facilities | 2 | $1.9B | 0.1% | |
| Opeators Of Nonresidential Buildings | 5 | $1000M | 0.0% |
Showing top 15 of 18 industries.
Quality Distribution
0
1
2
3
4
5
6
7
8
9
Quality Score (0-9)
High Quality (7+)
0%
Median Piotroski F
4/9
Profitable Years
6 of 10
Dividends & Shareholder Returns
Paying Dividends
77%
Median Div Yield
5.4%
Median Buyback Yield
0.3%
Shareholder Yield
5.5%
Payout Ratio
94.4%
Div Growth (3Y)
1.5%
Div Growth (5Y)
1.8%
Strengths & Weaknesses
Strengths
- +[Shareholder Returns]Generous capital returns with a median shareholder yield (dividends + buybacks) of 5.5%, rewarding investors through multiple channels.
Weaknesses
- −[Dividends]Stretched payout ratios at a median of 94.4%, limiting room for dividend growth or reinvestment.
- −[Financial Health]85.1% of companies fall in the Altman Z-Score distress zone (<1.8), indicating elevated bankruptcy risk within the sector.
- −[Leverage]Tight interest coverage at 1.5x, leaving limited cushion for debt servicing if earnings decline.
- −[Profitability]Below-average capital returns with a median ROIC of 4.8%, suggesting limited pricing power or capital-intensive operations.