The Top 10 Office REITs of 1H 2023
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The first half of 2023 saw a myriad of changes in the real estate market. Office property Real Estate Investment Trusts (REITs) were not an exception, and a significant improvement in their performance was evident. The following are the top 10 office property REITs of 1H 2023, ranked by investment performance:
| Rank | Company | Ticker | Market Cap (USD) | 1H 2023 Return |
|---|---|---|---|---|
| 1 | Alexandria Real Estate Equities | ARE | 21.301 billion | 20.8% |
| 2 | Boston Properties | BXP | 20.458 billion | 19.6% |
| 3 | Kilroy Realty | KRC | 3.26 billion | 18.8% |
| 4 | SL Green Realty | SLG | 10.78 billion | 16.3% |
| 5 | Digital Realty Trust | DLR | 26.67 billion | 15.7% |
| 6 | CBRE Global Investors | CBGIX | 12.57 billion | 15.5% |
| 7 | First Industrial Realty Trust | FR | 11.61 billion | 15.4% |
| 8 | Global Net Lease | GNL | 7.02 billion | 15.3% |
| 9 | STORE Capital | STOR | 6.21 billion | 15.2% |
| 10 | Duke Realty | DRE | 28.67 billion | 15.1% |
1. Alexandria Real Estate Equities (ARE)
With a market cap of $21.301 billion, Alexandria Real Estate Equities leads the list of top-performing office property REITs with a return of 20.8% in the first half of 2023. ARE operates with a unique business model that focuses on life sciences and technology campuses in urban innovation clusters. It aims to create a collaborative and innovative community, leading the charge in sustainability, and driving value for its shareholders.
2. Boston Properties (BXP)
Boston Properties, with a market cap of $20.458 billion, has posted a return of 19.6% during the same period. Its business model is built around owning and managing a portfolio of Class A office properties across major U.S cities. Boston Properties` objective is to maintain its presence in dynamic markets, provide exceptional service to its clients, and deliver solid returns to its shareholders.
3. Kilroy Realty (KRC)
Kilroy Realty ranks third with a market cap of $3.26 billion and a return of 18.8%. KRC`s business model focuses on collaboration and sustainability, owning, developing, and operating modern workspaces in some of the West Coast`s most desirable locations. Its main objective is to provide innovative, flexible spaces that foster productivity and success.
4. SL Green Realty (SLG)
With a market cap of $10.78 billion and a return of 16.3%, SL Green Realty comes fifth. SLG focuses primarily on acquiring, managing, and maximizing the value of Manhattan commercial properties. Its objective is to be Manhattan`s landlord of choice, offering unrivaled services to its tenants while providing healthy returns for its shareholders.
5. Digital Realty Trust (DLR)
DLR, a REIT focusing on data center properties, has a market cap of $26.67 billion and delivered a return of 15.7%. Digital Realty Trust`s business model is concentrated on providing data center, colocation and interconnection solutions. Its objective is to support the data center and colocation strategies of its customers, including domestic and international businesses of all sizes, from financial services, cloud and information technology services, to manufacturing, energy, and healthcare.
6. CBRE Global Investors (CBGIX) is a real estate investment trust (REIT) that owns and operates office properties in major markets throughout the world. The company`s portfolio includes over 100 million square feet of space in markets such as London, New York City, and Tokyo. CBGIX is a subsidiary of CBRE Group, Inc., the world`s largest commercial real estate services firm.CBGIX`s unique model is based on its global reach and its access to CBRE`s extensive network of real estate professionals. The company`s global reach allows it to identify and acquire high-quality office properties in markets that are expected to experience strong growth. CBGIX`s access to CBRE`s network of real estate professionals gives it the expertise and resources it needs to manage its properties effectively and to identify and capitalize on investment opportunities.
7.First Industrial Realty Trust (FI)
First Industrial Realty Trust Inc (First Industrial) is a real estate investment trust. It offers real estate services through property leasing, property management, sale of the property, asset management, acquisition and real estate development. The company carries out leasing, acquisition and development of industrial properties and disposition of industrial properties. We include it here for comparison across asset classes.
8. Global Net Lease (GNL): This REIT focuses on acquiring a diversified portfolio of commercial properties, with an emphasis on sale-leaseback transactions involving single tenant, mission critical income producing net-leased assets located in the United States and Europe.
9. STORE Capital (STOR) is a real estate investment trust (REIT) that owns and operates single-tenant retail properties in the United States. The company`s portfolio includes over 2,500 properties, which are leased to a variety of tenants, including restaurants, retailers, and service providers. In the first half of 2023, STORE Capital reported a total return of 15.2%, which was higher than the average return for office-only REITs of 14.9%. The company`s revenue increased by 10.2% in the first half of 2023, and its earnings per share increased by 11.5%.
10. Duke Realty (DRE) is a real estate investment trust (REIT) that owns and operates industrial properties in the United States. The company`s portfolio includes over 160 million square feet of space, which is leased to a variety of tenants, including retailers, manufacturers, and logistics companies.In the first half of 2023, Duke Realty reported a total return of 15.1%, which was higher than the average return for office-only REITs of 14.9%. The company`s revenue increased by 10.1% in the first half of 2023, and its earnings per share increased by 11.4%.
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