4 more REITs trade below book value and pay dividends

The following Real Estate Investment Trusts (REITs) are all trading below their book value and each is paying a dividend.

Should the Federal Reserve ever return to cutting interest rates, such REITs could be of interest to patient investors. While the expectation of a change in the exchange rate environment continues, the investor continues to receive dividends.

Anyway, this is the idea. It may or may not work, but for those who are interested, here is the REIT:

Medical Property Trust Inc. (NYSE: MPW) is a healthcare real estate investment trust headquartered in Birmingham, Alabama. The company trades at 88% of book value and pays a dividend of 8.92%. The market cap is $7.67 billion. While analysts predict a much tougher 2023, funds from operations (FFO) are up 36.9 this year. FFO growth over the past five years has risen by 5.2%. Short float is at the level of 15.83%, which indicates the distrust of a significant group of traders. If at any point these shorts are forced to close, the rally could be substantial. In mid-November, Bank of America Securities upgraded Medical Properties Trust to Buy from Neutral and raised its price target from $13 to $16.

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Suchem Capital Corp. (NYSEAMERICAN: SACH) is an American Stock Exchange-traded mortgage REIT with a market capitalization of $152 million, making it smaller than most in the sector. It is available for purchase at a 33% discount on book value. Sachem pays a dividend of 14.5%, but such high returns can be difficult to sustain. The Connecticut firm shows that funds from operations are up 7.1% this year and FFO up 9.7% over the past five years. It trades little with an average daily volume of around 338,000 shares.

in New York Safehold Inc. (NYSE: SAFE) invests in and manages commercial real estate across the country. The REIT trades at 93% of its book value and pays a dividend of 2.23%. With a market capitalization of $2.04 billion, it trades relatively easily for an NYSE-listed security with an average daily volume of 350,000 shares. The short float is about 17.1%, indicating distrust on the part of those involved in short trades. Funds from operations grew by 15.4% this year, and over the past five years, the increase was 30%.

Greenwich, Connecticut Starwood Property Trust Inc. (NYSE: STWD) is a mortgage REIT currently trading at a 4% discount from its book value. The market capitalization is $6.23 billion, the company pays a dividend of 9.61%. This year, operating funds increased by 31.9%, while FFO growth over the past five years was 0.30%. Trading on Starwood is active, with an average daily volume of 2.83 million shares.

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