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5 Value Stocks In The Real Estate Sector

What Defines a Value Stock?

A value stock is traditionally defined in terms of how investors in the marketplace are valuing that company’s future growth prospects. Low P/E multiples are good base indicators that the company is undervalued and can most likely be labelled as a value stock.

Below is a list of notable value stocks in the real estate sector:

  1. Optibase (NASDAQ:OBAS) – P/E: 9.04
  2. Brandywine Realty Trust (NYSE:BDN) – P/E: 6.91
  3. Tremont Mortgage (NASDAQ:TRMT) – P/E: 5.31
  4. Kimco Realty (NYSE:KIM) – P/E: 8.39
  5. Ellington Residential (NYSE:EARN) – P/E: 7.52

Optibase has reported Q3 earnings per share at 1.0, which has increased by 194.12% compared to Q2, which was 0.34. Optibase does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Brandywine Realty Trust’s earnings per share for Q4 sits at 0.36, whereas in Q3, they were at 0.35. Its most recent dividend yield is at 6.24%, which has decreased by 0.24% from 6.48% in the previous quarter.

Tremont Mortgage’s earnings per share for Q4 sits at 0.28, whereas in Q3, they were at 0.33. Tremont Mortgage does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Most recently, Kimco Realty reported earnings per share at 0.31, whereas in Q3 earnings per share sat at 0.25. Its most recent dividend yield is at 3.85%, which has decreased by 0.55% from 4.4% in the previous quarter.

Ellington Residential saw a decrease in earnings per share from 0.39 in Q3 to 0.34 now. Its most recent dividend yield is at 9.11%, which has decreased by 0.7% from 9.81% in the previous quarter.

The Significance: A value stock may need some time to rebound from its undervalued position. The risk of investing in a value stock is that this emergence may never materialize.

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