The U.S. housing market was booming last year, with sales of existing homes hitting their the highest level for about 15 years. In addition, historically low mortgage rates amid tight supply have driven house prices up dramatically. On the other hand, the lack of affordable housing and the desire of remote workers to relocate and take advantage of their flexibility have caused rents to skyrocket.

The cost of rent increased by 10.1% last year, increasing five times faster than in 2020. December 2021 marked the sixth consecutive month of double-digit annual increases in national rents. Additionally, Realtor.com expects rents to continue to rise this year, fueled by limited supply and excess demand. The organization’s forecasts national rental growth of 7.1% in 2022rising even faster than house prices.

In this context, real estate shares Newmark Group, Incorporation (NMRK), Privileged Apartment Communities, Incorporation (APTs) & BRT Apartments Corporation (BRT) could be ideal bets now.

Newmark Group, incorporation (NMRK)

NMRK is a leading provider of commercial real estate services worldwide. The Company’s services and products include capital markets, such as investment, property management, valuation and advisory, and commercial real estate consulting and advisory services.

NMRK announced this month its agreement with Budapest-based VLK Consulting, which will become Newmark VLK Hungary. VLK has built a solid reputation as one of Hungary‘s leading commercial property services companies. NMRK intends to leverage VLK’s expertise to strengthen its presence in Central and Eastern Europe. Additionally, NMRK announced another agreement with a leading commercial real estate group in Poland to operate under the name Newmark Polska. This agreement should strengthen its presence throughout Europe, the Middle East and Africa.

NMRK’s total revenue increased 80.8% year-over-year to $788.13 million for the third fiscal quarter ended Sept. 30. Its net income available to common shareholders increased 70.6% over the prior year’s value to $128.55 million, while its adjusted EBITDA improved 229.3%. year over year to $174.54 million. His adjusted earnings PES rose 316.7% from its value a year ago at $0.50.

Street expects the company’s revenue to grow 43.6% year-over-year to $863.73 million in the fiscal fourth quarter ending December 2021. The EPS consensus estimate $0.55 indicates an 82.7% year-over-year increase over the same period. Additionally, NMRK has beaten Street EPS estimates in three of the last four quarters, which is impressive.

NMRK shares have gained 109.3% over the past year and 36.9% over the past nine months to close its last trading session at $14.57.

NMRK POWR Rankings reflect this promising prospect. The company has an overall rating of B, which translates to Buy in our proprietary rating system. POWR ratings are calculated by considering 118 different factors, with each factor weighted to an optimal degree. NMRK is rated B in growth, value and momentum. Within the Real estate services industry, it is ranked #4 out of 45 stocks.

In addition to the POWR ratings I highlighted, you can see the NMRK’s stability, sentiment, and quality ratings. here.

Preferred Apartment Communities, Incorporation (APTs)

APTS is a real estate investment trust engaged in the ownership and operation of Class A multi-family properties. Its investment objective is to generate attractive and stable returns for shareholders by investing in properties and acquiring real estate loans for multi-family properties.

Last month, APTS announced the signing of a new 15-year lease at Three Ravinia in Atlanta, Georgia, with Hapag-Lloyd. The lease should diversify its tenant base and create additional cash flow.

In November, APTS closed its investment in home loans of approximately $9.10 million under Oxford Properties’ plans to develop Beaver Ruin Apartments, a multi-family community located in Gwinnett County, marking its second investment this year in Gwinnett County, a rapidly growing suburb of Atlanta. This home loan is expected to generate significant current returns and improve the pipeline of high-quality communities in its target markets.

APTS operating profit was $34.88 million, up 30.4% in the third fiscal quarter ended September 30, while net profit attributable to the business increased up 385.5% year over year to $9.98 million.

APTS EPS is expected to improve 15.6% year-over-year in the fourth fiscal quarter ended December 2021.

Over the past year, the stock has gained 122% to close yesterday’s trading session at $16.14. APTS shares have gained 55.2% over the past six months.

APTS’ POWR ratings reflect its strong fundamentals. The company has an overall rating of B, which translates to Buy in our proprietary rating system. APTS also obtained a B rating in growth, value and dynamism. In the REIT – Residential industry, it is ranked #1 out of 25 stocks. Click here to see APTS ratings for stability, sentiment and quality.

BRT Apartment Company (BRT)

BRT is an internally managed real estate investment trust (REIT) primarily focused on the ownership, operation and development of multi-family properties.

In November 2021, BRT announced an amended credit facility with VNB New York, LLC, a subsidiary of Valley National Bank, which will allow up to $35 million to be borrowed, and up to $60 million potential under of an uncommitted accordion feature, for the acquisition of multi-family properties. “The additional capital gives us the increased ability to pursue accretive opportunities that we believe will grow our portfolio,” said Jeffrey A. Gould, CEO of BRT.

BRT’s total revenue rose 5.5% year-over-year to $7.71 million in the third fiscal quarter ended Sept. 30. Its adjusted funds from operations rose 15.5% from the previous year’s value to $5.66 million, while its net profit attributable to common shareholders improved. 475.5% year over year to $28.11 million. The company’s adjusted operating funds per common share increased 10.7% year over year to $0.31.

The consensus revenue estimate of $7.60 million for the fourth fiscal quarter ending December 2021 indicates a 7.8% year-over-year increase. BRT’s FFO per share is expected to reach $0.30 for the same period, indicating a 3.5% year-over-year increase. Additionally, BRT has exceeded consensus estimates for FFO per share in three of the past four quarters.

The stock has gained 44% over the past year and 17.6% over the past six months to close its last trading session at $20.94.

It’s no surprise that BRT has an overall rating of B, which translates to Buy in our proprietary rating system. The stock is rated A in Sentiment and B in Momentum & Stability. It is ranked #2 in the REITs – Residential industry. Get BRT’s Growth, Value and Quality Scores here.

NMRK shares were trading at $14.58 per share on Friday afternoon, up $0.01 (+0.07%). Year-to-date, the NMRK is down -22.03%, compared to a -7.78% rise in the benchmark S&P 500 over the same period.

About the Author: Subhasree Kar

Subhasree’s keen interest in financial instruments led her to pursue a career as an investment analyst. After earning a master’s degree in economics, she gained knowledge in equity research and portfolio management at Finlatics. Following…

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