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Real Estate Sector Report

REITs Industry Report

Market Cap: $1.9T
Stocks: 252
Median P/E: 19.8x
Median ROIC: 5.2%

Data sourced from SEC EDGAR filings. Report refreshed weekly.

Part of the Real Estate sector.

Performance Dashboard

PeriodSector (MCW)Sector (Median)
1 Day+0.0%0.0%
1 Week-0.8%-0.2%
1 Month
3 Months
6 Months
YTD+0.7%+0.3%
1 Year+11.2%+5.5%
3 Years+53.2%+17.5%
5 Years+55.9%+10.1%

Today's Breadth: 110 advancing · 101 declining · 14 flat

Valuation Summary

MetricMedianP25P75vs 5Y Avg
P/E19.8x10.5x29.6x-15%
P/B1.1x0.6x1.9x-4%
P/S4.4x1.8x8.0x
P/FCF13.1x8.5x21.1x
EV/EBITDA13.5x8.6x17.8x
EV/EBIT21.5x14.4x30.4x
Earnings Yield
4.7%
FCF Yield
6.0%
Below Fair Value
31% of stocks

Profitability Profile

Margins

MetricMedian5Y AvgP25P75
Gross Margin44.2%44.3%25.6%66.0%
Operating Margin23.1%10.8%47.6%
Net Margin16.8%10.9%-3.3%35.7%
FCF Margin23.5%8.9%50.3%

Returns on Capital

MetricMedian5Y AvgP25P75
ROE5.3%-1.7%8.8%
ROA1.1%-0.5%3.5%
ROIC5.2%3.9%1.6%8.2%

Growth Metrics

Metric1Y3Y CAGR5Y CAGR
Revenue+4.5%+5.3%+6.7%
EPS+26.9%-1.4%+8.4%
Free Cash Flow+3.5%+1.9%+4.0%

All values represent sector median growth rates.

Balance Sheet Health

Debt / Equity
0.8x
Net Debt / EBITDA
4.7x
Interest Coverage
1.4x
Current Ratio
0.6x

Altman Z-Score

Safe (>3): 6 (2%)
Gray (1.8–3): 22 (9%)
Distress (<1.8): 222 (89%)

Piotroski F-Score

Strong (7–9): 16 (6%)
Moderate (4–6): 171 (68%)
Weak (0–3): 64 (25%)

Top Companies

Symbol#Mkt CapP/EEV/EBITDAROICNet MgnRev Gr.Div YldYTDQual.
WELL1$139.5B134.7x36.1x3.6%8.6%+35.6%1.5%+3.4%1/9
PLD2$128.0B36.1x21.9x4.9%37.8%+7.2%0.0%+1.0%1/9
EQIX3$103.7B55.2x18.9x11.6%14.7%+5.4%2.5%+0.6%5/9
AMT4$84.8B32.4x17.1x9.4%23.8%+5.1%3.9%+2.9%3/9
DLR5$67.9B43.3x19.3x3.9%20.7%+10.0%3.1%-0.0%3/9
SPG6$65.5B13.3x18.6x11.2%72.7%+6.7%4.5%+1.6%4/9
O7$57.3B48.0x16.0x3.3%18.4%+9.1%5.7%-1.4%1/9
PSA8$52.1B28.9x18.3x10.2%32.9%+2.7%4.6%-3.9%4/9
PLDGP9$48.9B15.9x12.2x4.9%37.8%+7.2%7.1%+0.2%5/9
VTR10$39.3B146.6x27.5x2.3%4.3%+18.5%2.4%+2.1%1/9
CCI11$38.3B87.4x23.8x7.5%10.4%-4.4%5.4%+2.1%3/9
IRM12$33.0B167.3x21.3x5.8%2.1%+12.2%3.9%+0.5%2/9
VICI13$30.1B10.8x12.7x8.3%69.3%+4.1%6.3%-0.2%3/9
EXR14$29.7B28.5x14.1x8.3%28.8%+3.7%5.0%-1.3%4/9
AGNCN15$26.0B17.1x5.7%+0.0%2/9
AGNCZ16$25.8B17.0x5.8%-0.1%2/9
AGNCO17$25.7B17.0x5.8%-0.3%2/9
AGNCP18$25.0B16.7x5.9%0.0%3/9
AGNCL19$24.9B16.6x5.9%-0.1%3/9
AGNCM20$24.9B16.7x5.9%-0.4%2/9

Industry Composition

IndustryStocksMarket Cap%
Real Estate Investment Trusts232$1.8T97.6%
REIT - Industrial5$22.2B1.2%
REIT - Retail9$11.9B0.6%
REIT - Diversified6$10.6B0.6%

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
7 of 10

Dividends & Shareholder Returns

Paying Dividends
87%
Median Div Yield
5.6%
Median Buyback Yield
0.4%
Shareholder Yield
5.8%
Payout Ratio
98.0%
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 5.8%, rewarding investors through multiple channels.
  • +[Valuation]Attractive valuations: current median P/E of 19.8x is 15.5% below the 5-year average, presenting potential value opportunity.

Weaknesses

  • [Dividends]Stretched payout ratios at a median of 98.0%, limiting room for dividend growth or reinvestment.
  • [Financial Health]88.8% of companies fall in the Altman Z-Score distress zone (<1.8), indicating elevated bankruptcy risk within the sector.
  • [Leverage]Tight interest coverage at 1.4x, leaving limited cushion for debt servicing if earnings decline.
  • [Profitability]Below-average capital returns with a median ROIC of 5.2%, suggesting limited pricing power or capital-intensive operations.

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