Today we will review the real estate sector of the American stock market, consisting of 254 companies! We all know companies from the technology sector and the financial industry, but there is not much news about real estate. Judging by the global economic situation, there is a total risk-on in the markets. In search of high profits and undervalued companies, investors are slowly moving from the overbought technology sector to the rest, and the real estate sector is no exception.
A detailed analysis of the companies represented in the list gives us an unsettling picture. It was quite difficult to find real candidates for inclusion in our portfolio.
In addition to the unsightly technical picture, almost all representatives of this sector have nondescript fundamental indicators. Of course, except the selected candidates — Equity Commonwealth (EQC) and Kimco Realty Corporation (KIM).
- Equity Commonwealth (EQC)
the history of the company is not as surprising and interesting as that of the previously considered companies included in our portfolio. the information on the official website is quite poor and does not cause any interest. Headquartered in Chicago, the company employs only 28 people. the main profile is the rental of office space. it would seem that it is quite unattractive, and against the background of a general pandemic and self-isolation, it does not look at all attractive. but, digging deeper into the sources, there was information that the main tenant of their space is the US government and medical companies. This information inspires much more optimism. The company also owns industrial land in Hawaii. The information received can be evaluated for a strong”C”.
2. Kimco Realty Corporation (KIM)
Kimco Realty Corporation is a real estate investment company. The company was founded in 1960 and is headquartered in New York City, New York, USA. Provides real estate management services, engages in the acquisition, improvement, and management of city blocks and district shopping centers, and deals with leasing and maintenance of real estate primarily in North America. At the moment, the company owns shares in 409 shopping centers. The number of employed employees is higher than in EQC: 533. The company has been repeatedly mentioned by experts as one of the assets for investing in real estate.
Summing up. We consider it necessary to include the real estate sector in our portfolio, and the selected candidates generally meet all the necessary criteria for this. The time, quantity, and price of the purchase are up to you. Everyone has their own risk and money management.