CNBC’s Jim Kramer on Tuesday offered a list of apartment real estate investment trusts that stock investors should consider buying to take advantage of rising rental prices.
“Since rents are just good news for landlords, why not just buy a landlord, or at least a part of a publicly traded landlord? Dr.
“With rents skyrocketing across the United States and an uncertain housing crisis due to mortgage rates, you may want to own the best apartment REIT,” he added.
According to the Jumper National Rent Report, the average one-bedroom price rose about 12% year-on-year in March, while the price of a two-bedroom rose about 14% year-on-year.
Kramer started with 17 names on the FTSE NAREIT Equity Apartment Index before narrowing down the list to the 10 largest REITs. He then evaluated each name by comparing their numbers for each category:
- The same store increases net operating income
- Expected revenue growth
- Funds estimated from the operation
- Evaluation
- Dividend yield
Using this criterion, Kramer came up with four winners that investors should keep an eye on.
Here are the top four apartment REIT:
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