ILPT - 1 Real Estate Stock to Avoid Like the Plague (and 2 to Buy Instead)
2023-03-08 07:09:00 ET
Industrial Logistics Properties Trust (NASDAQ: ILPT) has gotten mauled over the past year. Shares of the industrial real estate investment trust (REIT) have plummeted a staggering 83%. They could have further to fall. Because of that, investors should avoid this REIT like the plague.
Instead, they should consider buying shares of fellow industrial REITs Prologis (NYSE: PLD) and EastGroup Properties (NYSE: EGP) . Here's why they're much better buys than the beaten-up Industrial Logistics Properties.
The biggest factor weighing on Industrial Logistics Properties Trust over the past year is its debt-laden balance sheet. In late 2021, the company won the bidding to acquire fellow industrial REIT Monmouth Real Estate Investment Corp in an all-cash transaction valued at $4 billion plus the assumption of Monmouth's $409 million of debt. The company swooped in after Monmouth shareholders rejected a $3.4 billion cash-and-stock merger agreement with Equity Commonwealth (NYSE: EQC) .
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1 Real Estate Stock to Avoid Like the Plague (and 2 to Buy Instead)