CNBC’s Jim Cramer offered a list of apartment real estate investment trusts Tuesday that equity investors should consider buying to take advantage of soaring rent prices.
“Since higher rents are just good news for landlords, why not just buy a landlord, or at least part of a publicly traded landlord? said the “Mad Money” host.
“With skyrocketing rents all over America and an uncertain housing crisis due to mortgage rates, you might want to own one of the best apartment REITs,” he later added.
Median one-bedroom apartment prices in March were up about 12% year-over-year, while two-bedroom apartment prices were up about 14% year-over-year another, according to Zumper’s National Rent Report.
Cramer started with the 17 names in the FTSE NAREIT Equity Apartment Index before narrowing the list down to the 10 largest REITs. He then evaluated each name by comparing their numbers for each category:
- Same-store net operating income growth
- Expected revenue growth
- Projected Operating Funds
- Dividend yield
Using these criteria, Cramer came up with four winners for investors to keep an eye on.
Here are the top four apartment REITs:
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