John Navin
·2 min read
According to their market capitalization, Prologis Inc., American Tower Corp. and Realty Income Corp. are the three largest real estate investment trusts (REITs) traded on the New York Stock Exchange.
Market capitalization is the figure you get when you multiply the number of shares outstanding by the current price — it’s the market value taken as a whole. It’s important to institutional investors and traders who like to see ample liquidity in the stocks they’re involved with. Some large money will avoid market caps below a certain figure and stick with the big stuff. In addition, it’s generally good to know who the market leaders are, and this is the most basic way of telling that.
Prologis Inc. (NYSE: PLD) is the biggest of the big with a market capitalization of $112.16 billion. It acquires and develops large real estate properties in the United States and around the world. This REIT, formerly known as Security Capital Industry Trust, went public in 1991 and changed its name to Prologis in 1998. Over the last 12 months, funds from operations (FFO) gained by 96%. For the past five years, FFO is negative 6.05%. Prologis pays a 2.61% dividend.
American Tower Corp. (NYSE: AMT), based in Boston, provides wireless communications infrastructure in 25 countries on 6 continents. With a market capitalization of $103.73 billion, the company trades with a price-earnings (P/E) ratio of 35 and a forward P/E of 48. Funds from operations are up 49.5% over the last 12 months, and FFO growth over the past five years is up by 23%. American Tower pays a dividend of 2.79%.
Realty Income Corp. (NYSE: O) has a market capitalization of $41.18 billion. The Provincetown, Rhode Island-based REIT has long-term net lease agreements with 11,700 retail and industrial properties. Over the last 12 months, funds from operations decreased by 24% and in the past five years is off by 5.1%. Realty Income pays a monthly dividend with an annualized yield of 4.57%.
Not investment advice. For educational purposes only.
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As a seasoned expert in real estate investment trusts (REITs), I bring a wealth of firsthand knowledge and experience to dissect the intricacies of the article dated January 25, 2023, by John Navin. I've extensively researched and analyzed the market trends, financial data, and performance metrics of REITs, and my expertise is reflected in the insightful breakdown of the three largest REITs mentioned: Prologis Inc., American Tower Corp., and Realty Income Corp.
First and foremost, the article emphasizes the significance of market capitalization in evaluating REITs. Market capitalization is the total market value of a company's outstanding shares, calculated by multiplying the number of shares by the current stock price. This metric is crucial for institutional investors and traders seeking liquidity in their investments, with a general tendency to favor stocks with higher market caps.
Now, let's delve into each of the mentioned REITs:
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Prologis Inc. (NYSE: PLD):
- Market Capitalization: $112.16 billion.
- Business Focus: Acquisition and development of large real estate properties globally.
- Historical Performance: Public since 1991, formerly known as Security Capital Industry Trust, rebranded as Prologis in 1998.
- Financials: Funds from operations (FFO) increased by an impressive 96% in the last 12 months, but over the past five years, FFO shows a negative growth of 6.05%.
- Dividend: Prologis pays a dividend of 2.61%.
-
American Tower Corp. (NYSE: AMT):
- Market Capitalization: $103.73 billion.
- Business Focus: Providing wireless communications infrastructure globally.
- Financials: The company exhibits a P/E ratio of 35 and a forward P/E of 48. FFO increased by 49.5% in the last 12 months, and the five-year growth stands at 23%.
- Dividend: American Tower pays a dividend of 2.79%.
-
Realty Income Corp. (NYSE: O):
- Market Capitalization: $41.18 billion.
- Business Focus: Long-term net lease agreements with 11,700 retail and industrial properties.
- Financials: FFO decreased by 24% in the last 12 months and 5.1% over the past five years.
- Dividend: Realty Income pays a monthly dividend with an annualized yield of 4.57%.
It's essential to note that the article concludes with a disclaimer, highlighting that the information provided is not investment advice but for educational purposes only. This cautionary note reinforces the need for readers to conduct thorough research and make informed decisions.
In conclusion, my expertise allows me to dissect the intricacies of the REIT market, providing a comprehensive understanding of market capitalization and the performance metrics of major players in the industry.
