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Highest Earnings Yield in the Industrial REITs Industry Detected for DuPont Fabros Technology (DFT, EGP, PLD)

Published on Tue, 03/26/2013 - 10:28
By Adrienne Chilton

Below are the three companies in the Industrial REITs industry with the highest earnings yields. Earnings yield is useful to compare the relative benefit of owning a stock vs. owning other yield assets such as bonds. If the earnings yield is higher, stocks may be considered undervalued.

DuPont Fabros Technology (NYSE:DFT) is highest with an earnings yield of 1.7%. DuPont Fabros Technology Inc. is a real estate investment trust and owner, developer, operator and manager of wholesale data centers. The Company's data centers are used primarily by national and international technology companies to house, power and cool the computer servers that support many of their most critical business processes.

There is potential upside of 8.7% for shares of DuPont Fabros Technology based on a current price of $24.29 and an average consensus analyst price target of $26.40. DuPont Fabros Technology shares should encounter resistance at the 200-day moving average (MA) of $24.88 and support at the 50-day MA of $23.77.

EastGroup Properties (NYSE:EGP) is next with an earnings yield of 1.5%.

Finishing up the top three is ProLogis (NYSE:PLD), with an earnings yield of 1.3%.

By Adrienne Chilton
achilton@fnno.com