Real estate shares are a popular asset class among investors due to their long-term and stable returns. With well-chosen assets, investors can generate profits through rental income and other related funds. REITs in particular are considered a safe haven against inflation and are suitable for diversifying investors' equity portfolios. In this article, we present a selection of real estate companies and REITs.
Vonovia
- Company: Vonovia SE
- Symbol (TWS): VNA
- ISIN: DE000A1ML7J1
- Stock exchange: XETRA
- Country: Germany
- Currency: EUR
- Market capitalization: EUR 30.48 billion / USD 35.38 billion
- Sales (TTM) in USD: 4.21 billion
Vonovia is one of the largest real estate companies in Europe and focuses mainly on the German residential market. The company's core business is the development and management of residential real estate for customers throughout Germany and in some international markets. Its closest competitors are other German real estate companies specializing in the residential market, such as Deutsche Wohnen or LEG Immobilien. Vonovia has been listed on the stock exchange since 2013 and its market capitalization is currently around €24 billion. In 2015, the company was included in the German benchmark index DAX and since 2020 Vonovia has been part of the Euro Stoxx 50.
LEG Real Estate
- Company: LEG Immobilien SE
- Symbol (TWS): LEG
- ISIN: DE000LEG1110
- Stock exchange: XETRA
- Country: Germany
- Currency: EUR
- Market capitalization: EUR 9.84 billion / USD 11.43 billion
- Sales (TTM) in USD: 959 million
LEG Immobilien AG operates in Germany and is headquartered in Düsseldorf. LEG rents out apartments, commercial units, garages and parking spaces and buys and sells real estate portfolios. In addition, the company offers property management and site development services. As of December 31, 2020, LEG's portfolio included nearly 150,000 residential units, 1350 commercial units and 39,000 garages and parking spaces. LEG Immobilien has a market capitalization of approximately €9.5 billion and is a member of the MDAX.
Simon Property Group
- Company: Simon Property Group Inc
- Symbol (TWS): SPGS
- ISIN: US8288061091
- Stock Exchange: New York Stock Exchange
- Country: USA
- Currency: US Dollar
- Market capitalization: USD 45.79 billion
- Sales (TTM) in USD: USD 4.69 billion
Simon Property Group is an American real estate investment trust (REIT) that invests in commercial and retail properties such as shopping centers, community centers and lifestyle centers. The company is the largest owner of shopping centers in the U.S. and is headquartered in Indiana.
In 2Q2021, Simon Property Group reported earnings per share (EPS) of 3.24 $, beating the market consensus by 0.86 $. The company generated 1.2 billion $ in revenue, up from 1.06 billion $ in the year-ago period. As of June 30, the occupancy rate was 91.8 %. The dividend was raised to 1.50 $ per share last quarter, an increase of 7.1 % from the previous quarter. Extrapolated for the year, the dividend is therefore USD 6, which currently corresponds to a dividend yield of approximately 4.5 %.
American Tower Corporation
- Company: American Tower Corporation (REIT)
- Symbol (TWS): AMT
- ISIN: US03027X1000
- Stock Exchange: New York Stock Exchange
- Country: USA
- Currency: US Dollar
- Market capitalization: USD 121.92 billion
- Sales (TTM) in USD: 8.59 billion
American Tower Corporation is also a real estate investment trust (REIT) that operates wireless and broadcast communications infrastructure worldwide. The Boston, USA-based company has more than 200,000 communications sites. American Tower Corporaiton's revenues and profits have increased significantly in recent quarters. Radio towers play an important role in this regard due to the expansion of 5g technology and should continue to provide stable revenues in the coming years. American Tower's dividend yield is currently around 2%.