Hotels, Self-Storage Lead in REIT Metrics

CHARLOTTESVILLE, VA—Hotels and self-storage are the sectors to beat in two significant REIT metrics, according to industry research. Locally based SNL Financial says lodging trusts led the way in exceeding estimates for funds from operations per share for the first quarter, while NAREIT said earlier this month that self-storage REITs posted the highest total returns of any major property sector during the first five months of this year.

Among the 20 equity REITs that beat earnings expectations by the widest margins, the hotel sector accounted for nine, or 45% of the total. Coming out on top was Strategic Hotels & Resorts Inc., which led with a FactSet FFO-per-share estimate beat of 115.5%. SNL cites a research report from RBC Capital Markets analyst Wes Golladay, who wrote that strong group business and margin expansion bostered BEE’s strong Q1 showing.