These 4 REITs Trade Below Book Value And Pay Dividends

When a real estate investment trust (REIT) trades below book value, its in the bargain basement of stock market offerings. When that REIT offers a dividend, the investor receives payment just for holding the cheap security. It can be a sweet combination of factors as long as other important metrics align favorably.

Here are four REITs that seem to fit that bill:

New York-based Blackstone Mortgage Trust Inc. (NYSE: BXMT) is a mortgage REIT. As the company puts it on its website, Blackstone is a real estate finance company that originates senior loans collateralized by commercial real estate in North America, Europe and Australia.

Blackstone Mortgage Trust is paying a 10.55% dividend and trades at 86% of book value.

Medical Properties Trust Inc. (NYSE: MPW) is a healthcare facilities REIT with 434 properties in 10 countries and a total portfolio amounting to $21.1 billion. The Birmingham, Alabama-based company is trading at an 8% discount from its book value and paying an 8.45% dividend. In mid-November, Bank of America Securities upgraded Medical Properties from Neutral to Buy and upped its price target from $13 to $16.

Ready Capital Corp. (NYSE: RC) is a mortgage real estate investment trust based in New York, New York. The REITs website says the company originates, acquires, finances and services small to medium-sized balance commercial loans. The companys shares are available for purchase at 82% of book value, and the dividend comes to 12.76%. Ready Capital is relatively lightly traded for a New York Stock Exchange-listed security with an average daily volume of 850,000 shares.

Starwood Property Trust Inc. (NYSE: STWD) is another mortgage REIT, this one with headquarters in Greenwich, Connecticut. The company has a portfolio of over $27 billion across commercial and residential lending, infrastructure lending, investing and servicing and property business segments, according to its website.  Starwood pays a dividend of 9.39% and trades at a 3% discount to its book value.

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These are rate-sensitive REITs so investors should keep a close eye on the Federal Reserves actions relative to interest rates.

Not investment advice. For educational purposes only.

 

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