Home Investments 3 Beaten-Down REITs to Take Advantage of Right Now

3 Beaten-Down REITs to Take Advantage of Right Now

by Ozva Admin

The Real Estate Investment Trust (REIT) industry is relatively better positioned than many industries to survive high market volatility, as they typically benefit from an inflationary environment. Also, investors prefer REITs in tough times due to their high dividend distributions.

The FTSE EPRA/Nareit Global Real Estate Index The series outperformed the broader markets in July 2022. Additionally, according to Statista, the REIT industry in the US achieved a record market capitalization of $1.74 billion in 2021. The increasing demand for space and warehouses fosters significant growth opportunities for REITs.

Given the promising outlook for the industry, it would be prudent to invest in battered but fundamentally strong REITs Apartment Income REIT Corp. (AIR), Bridge Investment Group Holdings Inc. (BRDG) and Urstadt Biddle Properties Inc. (UBA).

Apartment rentals REIT Corp. (AIR)

AIRC is a real estate investment trust focused on owning and managing quality apartment communities located in the largest markets in the U.S. It is one of the largest apartment owners and operators in the country, with 99 communities in 12 states and the District of Columbia.

On July 28, 2022, CEO Terry Considine said, “With a clear strategy focused on efficient operations, low leverage, a capable team, and a committed Board, AIRC has substantially achieved all stated goals.”

AIRC’s rental and other property income increased 2.4% year over year to $181.01 million for the second quarter ended June 30, 2022. Its total income was $183.50 million, up 2.9% more year after year. Also, it’s NAREIT FFO came in at $100.42 million, up 131.1% year over year, while NAREIT FFO per share came in at $0.64, up 128.6% year over year.

AIRC’s revenue is expected to rise marginally year-over-year to $753.68 million in 2022. Its EPS is estimated to grow 6,650% year-over-year to $4.05 in 2022. Over the past month, the stock has lost down 9.4% to close the last trading session at $41.08.

AIRC’s strong foundations are reflected in its POWR Ratings. The stock has an overall B rating, indicating a buy on our proprietary rating system. POWR ratings evaluate stocks on 118 different factors, each with its own weighting.

AIRC has a B rating for Growth, Sentiment and Quality. Within REITs – Residential industry, ranks No. 2 out of 23 stocks. Click here for additional POWR ratings for Value, Drive and Stability for AIRC.

Bridge Investment Group Holdings Inc. (BRDG)

BRDG is engaged in the real estate investment management business in the United States. It manages capital on behalf of approximately 100 global institutions and 6,500 individual investors in 25 investment vehicles.

On August 8, 2022, BRDG launched its new strategy, Bridge Ventures. This company will focus on early and later stage PropTech companies and seek investment in industry leading PropTech funds, thus diversifying BRDG’s existing portfolio.

Additionally, on July 13, 2022, BRDG launched its Bridge Solar Energy Development in partnership with Lumen Energy Inc. This collaboration aims to build advanced solar projects to achieve the goal of cost-effective decarbonization.

BRDG’s total revenue was $99.02 million in the second quarter ended June 30, 2022, up 37.6% year over year. Its income from fund management fees amounted to 49.38 million dollars, 43% more than the previous year. In addition, its net income was $124.38 million, 49.4% more than the previous year.

Analysts expect BRDG’s revenue to grow 15.3% year over year to $380.52 million in 2022. Its EPS is expected to grow 18.3% year over year to $1.10 in 2022. EPS estimates in each of the four subsequent quarters. . The stock has lost 4.8% over the last month to close the last trading session at $16.22.

Not surprisingly, BRDG has an overall B rating, which represents a buy. It has a B rating for Growth, Momentum, Sentiment and Quality. Ranked No. 2 out of 49 stocks in the REIT – Diversified industry. Click here to view additional BRDG (Value and Stability) ratings.

Urstadt Biddle Properties Inc. (UBA)

UBA is a self-managed equity real estate investment trust that owns or has equity interests in 81 properties containing approximately 5.20 million square feet of space. It provides investors with a means of participating in the ownership of income-producing properties.

On June 8, 2022, Willing L. Biddle, President and CEO of UBA, said, “Our management and leasing teams are very busy working to deliver space to our new tenants and have a strong pipeline of new leases in process”.

He added, “We currently have 68,700 square feet of new leases in the negotiation stage, as well as letters of intent for over 159,000 square feet.”

For the second quarter ending April 30, 2022, UBA’s total revenue was $36 million, up 9.3% from the prior year. Its net income came in at $7.11 million, up 53.8% year over year, while its EPS came in at $0.18, up 50% year over year. Additionally, its FFO came to $14.27 million, up 21.7% year over year.

UBA’s revenue is expected to grow 4.6% year-over-year to $141.86 million in 2022. Its EPS is expected to grow 5.9% annually over the next five years. The stock has lost 7.4% over the last month to close the last trading session at $17.04.

UBA’s overall B rating is equivalent to a purchase on our proprietary rating system. Additionally, it has a B rating for Growth, Stability, and Sentiment.

UBA ranks first among 32 stocks in the REIT – Retail industry. Click here to view additional POWR Ratings for UBA (Value, Momentum and Quality).


AIRC shares were trading at $41.26 per share on Wednesday morning, up $0.18 (+0.44%). Year-to-date, AIRC is down -22.33%, versus a -15.70% rise in the benchmark S&P 500 index over the same period.

About the author: Riddhima Chakraborty

Riddhima is a financial journalist with a passion for analyzing financial instruments. With a master’s degree in economics, helps investors make informed investment decisions through his insightful commentary. Plus…

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