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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