Camden Property Trust (CPT)

Camden Property Trust owns, manages, develops and acquires multifamily apartment communities. It has investments in 170 properties containing 58,055 apartment units across the U.S.

The company also has 5 properties under development. Upon completion of those, its apartment unit count would reach 59,828.

In Q1, Camden posted a strong occupancy rate of 97.1%, compared to 95.9% in the year-ago period.

The REIT was also earning more rent from each unit. In Q1, new lease and renewal lease rates were, on average, 15.8% above expiring lease rates when signed.

Camden Property pays quarterly dividends of 94 cents per share, translating to an annual yield of 2.8%.

Baird analyst Wesley Golladay has an ‘outperform’ rating on Camden and a price target of $153 — roughly 15% above where the stock sits today.

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Mid-America Apartment Communities (MAA)

Mid-America Apartment Communities is a REIT with a portfolio diversified mainly across the high-growth sunbelt regions of the U.S.

As of Mar. 31, the company had investments in 101,959 apartment units across 15 states and the District of Columbia.

In Q1, Mid-America’s same-store portfolio revenue grew 12.2% year over year. Meanwhile, its same-store portfolio net operating income rose 16.9% from a year ago.

For full-year 2022, management expects the REIT’s same-store portfolio to achieve effective rent growth of 11.0% to 13.0% and net operating income growth of 12.5% to 14.5%.

Mid-America’s board of directors recently approved a 15% increase to the company’s quarterly dividend rate to $1.25 per share. At the current share price, that translates to an annual yield of 3.0%.

Jefferies analyst Jonathan Petersen sees potential in this multifamily REIT. He has a ‘buy’ rating on the stock and a price target of $201 — around 18% above the current levels.

Equity Residential (EQR)

Equity Residential is another big player in the multifamily real estate business: the company commands a market cap of around $27 billion and has a portfolio of 311 properties consisting of 80,581 apartment units.

The portfolio is geographically diversified, too. Equity Residential has an established presence in Boston, New York, D.C., Seattle, and San Francisco — and is expanding in metros like Denver, Atlanta, Dallas, and Austin.

Just like the other two REITs, Equity Residential is making more money in this inflationary environment.

According to the latest earnings report, Equity Residential’s same-store revenue increased 7.8% year over year in Q1. The company attributed the growth to strong occupancy rates and “significant growth in pricing power.”

The REIT has a quarterly dividend rate of 62.5 cents per share, giving the stock an annual yield of 3.5%.

Dividends might not be the only thing shareholders can look forward to. Mizuho analyst Haendel St. Juste has a ‘buy’ rating on Equity Residential and a price target of $79. Considering that the REIT trades at $71.65 per share at the moment, his price target implies a potential upside of 10%.

Fine art as an investment

Stocks can be volatile, cryptos make big swings to either side, and even gold is not immune to the market’s ups and downs.

That’s why if you are looking for the ultimate hedge, it could be worthwhile to check out a real, but overlooked asset: fine art.

Contemporary artwork has outperformed the S&P 500 by a commanding 174% over the past 25 years, according to the Citi Global Art Market chart.

And it’s becoming a popular way to diversify because it’s a real physical asset with little correlation to the stock market.

On a scale of -1 to +1, with 0 representing no link at all, Citi found the correlation between contemporary art and the S&P 500 was just 0.12 during the past 25 years.

Earlier this year, Bank of America investment chief Michael Harnett singled out artwork as a sharp way to outperform over the next decade — due largely to the asset’s track record as an inflation hedge.

Investing in art by the likes of Banksy and Andy Warhol used to be an option only for the ultrarich. But with a new investing platform, you can invest in iconic artworks just like Jeff Bezos and Bill Gates do.

About the Author

Jing Pan

Jing Pan

Investment Reporter

Jing is an investment reporter for MoneyWise. Prior to joining the team, he was a research analyst and editor at one of the leading financial publishing companies in North America. An avid advocate of investing for passive income, he wrote a monthly dividend stock newsletter for the better half of the past decade. Jing holds a Master’s Degree in Economics and an Honours Bachelor of Science Degree, both from the University of Toronto.

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