According to the Commerce Department, construction of U.S. homes rose sharply by 4.4% in December to an annual rate of 1.09 million, the highest in seven years, signalling rosy outlook for housing sector. Today, we have shortlisted six U.S. residential REITS that have recorded low Debt to Capital ratio (<45%) during their trailing twelve month period and would benefit from ongoing economic activity in the housing sector. These stocks would offer higher return on investments as they carry low debt. During the past one month, half of the stocks have registered price gains with daily average trading volumes in excess of 100,000.
| Company Name |
Ticker |
Exchange |
Market Cap |
Last Price |
Average Volume |
Price Change (1-Month) |
TTM Total Debt to Total Capital |
|
American Homes 4 Rent |
AMH |
NYSE |
3,612.0 |
17.08 |
723,592 |
-1.9% |
1.9% |
|
United Development Funding IV |
UDF |
NASDAQ |
507.4 |
16.57 |
123,713 |
-11.0% |
22.0% |
|
Roberts Realty Investors Inc |
RPI |
NYSE |
12.7 |
1.26 |
35,294 |
18.9% |
26.9% |
|
Silver Bay Realty Trust Corp |
SBY |
NYSE |
603.5 |
16.15 |
267,897 |
-3.4% |
33.3% |
|
Post Properties Inc |
PPS |
NYSE |
3,379.9 |
62.06 |
407,253 |
3.6% |
40.9% |
|
Education Realty Trust Inc |
EDR |
NYSE |
1,812.5 |
38.16 |
576,286 |
2.7% |
42.7% |
Source: Bloomberg
Company Description
American Homes 4 Rent (NYSE: AMH)
American Homes 4 Rent is an internally managed Maryland real estate investment trust, or REIT, focused on acquiring, renovating, leasing and operating single-family homes as rental properties.
United Development Funding IV (NASDAQ: UDF)
United Development Funding IV invests in secured loans for the acquisitions and development of land into single-family home lots. The Fund will also makes investments in residential real estate in select geographic markets and securitized real estate loan pools. UDF IV invests in opportunities in Texas, United States.
Roberts Realty Investors Inc (NYSE: RPI)
Roberts Realty Investors, Inc. owns and operates multifamily properties as a self-administered, self-managed equity real estate investment trust. The company conducts its business through, and is the sole general partner of, Roberts Properties Residential, L.P.
Silver Bay Realty Trust Corp (NYSE: SBY)
Silver Bay Realty Trust Corp. is a real estate investment trust. The company is focused on the acquisition, renovation, leasing and management of single-family properties and generates revenue by leasing its portfolio of single-family properties.
Post Properties Inc (NYSE: PPS)
Post Properties, Inc. develops and operates upscale multi-family apartment communities in the Southeastern and Southwestern United States. The Company operates as a self-administered and self-managed Real Estate Investment Trust whose primary business consists of developing and managing Post brand name apartment communities for its own account.
Education Realty Trust Inc (NYSE: EDR)
Education Realty Trust, Inc. is a self-managed and self-advised real estate investment trust. The company owns, acquires, manages, and selectively develops student housing communities located near university campuses.
