Mortgage REITs Trading Below Book Value

During Fed tightening cycles due to inflation, real estate investment trusts posted positive total returns in 85% of periods with rising Treasury yields from the first quarter of 1992 to the fourth quarter of 2021, according to Nareit. Furthermore, REITs outperformed the S&P 500 in half of the...

The VanEck Mortgage REIT Income ETF (ARCA: MORT) is down roughly 31% year-to-date, as a series of interest rate hikes by the Federal Reserve has sent a shock through real estate-related industries. Mortgage REITs allow investors to join the real estate market without owning the physical...

When assessing mortgage real estate investment trusts (REITs), one factor to consider is the stock price should never trade at a premium to the book value more than its dividend yield. Additionally, mortgage REITs tend to have higher yields than equity REITs, achieving a five year dividend yield of...