Defensive REIT with yield over 5% and valuation at lows

At a time when investors are rushing into tech speculation or chasing growth at any cost, a company that offers something completely different is quietly trading on the stock market - stability, an attractive dividend yield and a premium real estate portfolio in the most desirable areas of the U.S..

The company's stock trades below 70% of book value, while owning dozens of office and residential properties in the heart of Los Angeles and Honolulu. The dividend of over 5% is covered by operating cash flow and with conservative management, the company has the potential to weather a more difficult macroeconomic environment. A combination that could be a hidden gem for long-term investors.

Top points of analysis

  • Dividend yield over 5%, quarterly payout, attractive income even in a defensive portfolio
  • Premium office and residential properties in Los Angeles and Honolulu
  • Valuation below 7x FFO and below 0.7x P/B - deep discount to historical sector averages
  • Occupancy over 85%, with positive signs…

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The information in this article is for educational purposes only and does not serve as investment advice. The authors present only facts known to them and do not draw any conclusions or recommendations for readers. Read our Terms and Conditions
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