Pebblebrook Hotel Trust And Industrial Logistics Properties Trust Hit New Lows
Two more real estate investment trusts (REITs) are joining the steady stream of companies in that sector now reaching 52-week lows.
Pebblebrook Hotel Trust (NYSE: PEB) and Industrial Logistics Properties (NYSE: ILPT) are the latest REITs to fall below previous support levels. The Federal Reserve’s actions to take interest rates higher are affecting this group of rate-sensitive companies.
Pebblebrook buys and manages hotel and resort properties “in or near urban markets in major United States gateway cities,” according to the company’s website.
Bethesda, Maryland-based Pebblebrook is now trading at just 60% of its book value. Funds from operations (FFO) this year increased by 44.7% and the past five-year FFO is -36.70%. The short float in the REIT is a relatively high 7.94% indicating a lack of belief among those short sellers.
Pebblebrook pays a 0.28% dividend.
The daily price chart is here:
It’s a bearish look when the price trades below the 50-day moving average (the blue line) and the 200-day moving average.
Industrial Logistics Properties Trust owns and operates industrial and logistics properties throughout the United States. The REIT owns 413 locations totaling 60 million square feet. The Newton, Massachusetts-based company is trading for about 20% of its book value.
Funds from operations this year are up by 45.5% and the past five-year FFO record is up by 6.5%. Industrial Logistics’ long-term debt greatly exceeds its shareholder equity. The short float for shares is 4.07%. The real estate investment trust is paying a 1.21% dividend.
Here’s how the daily price chart looks:
Note that since the dramatic gap down in mid-July, the price has been unable to climb above the 50-day moving average. It’s also well below the 200-day moving average.
Other factors are leading to these new price lows, but it’s mainly the adjustment to the higher interest rates as mandated by the Fed.
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