These five real estate investment trusts trade below their book value and they all pay dividends. They represent the diversity found among REITs: one has a multifamily-oriented approach. One favors mortgage assets. Another is involved in real estate projects for the regulated cannabis industry.
The market caps vary widely as well. The smallest has market capitalization of just over $128 million. The largest has a market cap of $5.94 billion. Several of these names are components of the Russell 2000 small caps exchange traded fund. All are New York Stock Exchange listed
Below Book Value REITs With Dividends
Angel Oak Mortgage REIT.
This real estate investment trust is involved mortgage-related assets including non-conventional loans (known as non-QM). Angel Oak has a market cap of $213.39 million. It’s a holding of the Russell 2000 small caps ETF. The REIT trades at 85% of its book value and pays a 14.10% dividend.
The current price of $9.09 is below a down-trending 50-day moving average and below the mid-2024 peak of just above $11.50.
Apple Hospitality REIT.
Apple Hospitality is a hotel and motel REIT with a market cap of $2.76 billion. It’s a Russell 2000 small caps ETF holding. Now trading at a 14% discount to book, Apple pays a dividend of 8.42%. The price-earnings ratio is 14.64. The debt-to-equity ratio is .51.
The weekly chart shows that the price in April 2025 took out the previous low from September 2022. It’s bounced since then but the 50-week moving average just crossed below the 200-week moving average, a sign of the recent underlying weakness.
Innovative Industrial Properties.
This REIT invests in the real estate properties of the state-licensed cannabis industry. The market cap is $1.61 billion. Innovative Industrial is a holding of the Russell 2000 small caps ETF. It’s available for purchase at 86% of its book value. The company offers investors a 12.24% dividend.
The price currently trades below both the 50-week and the 200-week moving averages. In April 2025, it dropped below the April 2023 low, a previous support level.
Lument Finance Trust.
This one is a mortgage REIT with a market cap of just $130.55 million. It trades at a 25% discount to its book value. The dividend is 12.83%. The price-earnings ratio is 12.53 and the debt-to-equity ratio is 3.53. Lument Finance is lightly traded with an average daily volume of just 121,000 shares.
The price is in an uptrend on the weekly chart above. Note that it trades above the 50-week and the 200-week moving averages.
Rithm Capital.
Rithm Capital is another of the mortgage REITs. The market cap is $5.95 billion. It trades at a 9% discount to book value with a price-earnings ratio of 9.37. The debt-to-equity ratio is 4.34. Rithm offers a 8.91% dividend. Piper Sandler in April upgraded their opinion of the REIT from “neutral” to “overweight.”
On the weekly chart above, you can see how the price is in an uptrend, now trading above the 50-week and the 200-week moving averages.
Stats courtesy of FinViz.com. Charts courtesy of Stockcharts.com.
No artificial intelligence was used in the writing of this post.
More analysis and commentary at johnnavin.substack.com.
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