1 Residential REIT to Buy and 1 to Sell

: DWAHY | Daiwa House Industry Co. Ltd. ADR News, Ratings, and Charts

DWAHY – REITs are considered excellent inflation-hedging investments due to their ability to benefit by increasing rents in an inflationary environment. Moreover, residential REITs have benefited from soaring home prices and mortgage rates. Thus, we believe it could be wise to buy quality residential REIT Daiwa House (DWAHY), which possesses robust financials. However, fundamentally weak Independence Realty (IRT) could be best avoided now. Read on….

Real estate investment trusts (REITs) are considered profitable investments during inflationary periods because of their ability to increase their rents. Also, the prices of properties that REITs hold usually rise amid an inflationary environment. 

According to the Center for Financial Research and Analysis’ (CFRA) chief equity strategist Sam Stovall, REITs are “a strong inflation hedge, with sub-industries that issue short-term leases able to adjust quickly to rising prices.”

In addition, skyrocketing home prices and mortgage rates have been benefitting residential REITs. Investors’ interest in REITs is evident from the Vanguard Real Estate ETF’s (VNQ) 4.5% returns over the past month.

Given the backdrop, it could be wise to scoop up the shares of quality residential REIT Daiwa House Industry Co., Ltd. (DWAHY - Get Rating), which possesses robust financials. However, we think Independence Realty Trust, Inc. (IRT - Get Rating) might be best avoided now, considering its bleak fundamentals.

Stock to Buy:

Daiwa House Industry Co., Ltd. (DWAHY - Get Rating)

Headquartered in Osaka, Japan, DWAHY engages in the construction business worldwide. It operates through Single-Family Houses; Rental Housing; Condominiums; Existing Homes; Commercial Facilities; Logistics, Business and Corporate Facilities; and Other Businesses segments.

For the year ended March 31, 2022, DWAHY’s net sales increased 7.6% year-over-year to ¥4.44 trillion ($33.22 billion). Its gross profit came in at ¥864.68 billion ($6.47 billion), up 4.6% year-over-year. Also, its net income came in at ¥228.96 billion ($1.71 billion), up 13.7% year-over-year.

DWAHY’s trailing-12-month EV/EBITDA of 6.44x is 67.7% lower than the industry average of 19.91x. Its trailing-12-month P/S of 0.44x is 92.4% lower than the industry average of 5.72x.

Analysts expect DWAHY’s revenue to be $34.66 billion in March 2023, representing a 126.8% year-over-year increase. Over the past month, the stock has gained 3.8% to close the last trading session at $24.30.

DWAHY’s strong fundamentals are reflected in its POWR Ratings. The stock has an overall B rating, equating to a Buy in our proprietary rating system. The POWR Ratings assess stocks by 118 different factors, each with its own weighting.

DWAHY has a B grade for Value and Stability. It is ranked #2 out of 24 stocks in the REITs – Residential industry. Click here for the additional POWR Ratings for Growth, Momentum, Sentiment, and Quality for DWAHY.

Stock to Avoid:

Independence Realty Trust, Inc. (IRT - Get Rating)

IRT is a real estate investment trust that owns and operates multifamily apartment properties across non-gateway U.S. markets, including Atlanta, Louisville, Memphis, and Raleigh.

IRT’s total revenue increased 169.4% year-over-year to $154.76 million for the second quarter ended June 30, 2022. However, its net loss came in at $7.40 million, compared to a net income of $3.41 million in the year-ago period. Moreover, its loss per share came in at $0.03, compared to an EPS of $0.03 in the previous period.

IRT’s trailing-12-month EV/EBITDA of 31.11x is 56.3% higher than the industry average of 19.91x. Its trailing-12-month P/S of 8.13x is 42% higher than the industry average of 5.72x.

IRT’s EPS is estimated to fall 137.7% year-over-year to a negative $0.20 in 2023. IRT has lost 17.3% year-to-date to close the last trading session at $21.36.

IRT’s POWR Ratings reflect its poor prospects. The stock has an overall F rating, equating to a Strong Sell. It has a D grade for Growth, Value, Stability, and Quality.

Click here to access the additional POWR Ratings for IRT (Momentum and Sentiment). IRT is ranked last in the same industry.

Want More Great Investing Ideas?

3 Stocks to DOUBLE This Year


DWAHY shares were trading at $23.75 per share on Wednesday afternoon, down $0.55 (-2.25%). Year-to-date, DWAHY has declined -17.25%, versus a -12.31% rise in the benchmark S&P 500 index during the same period.


About the Author: Riddhima Chakraborty


Riddhima is a financial journalist with a passion for analyzing financial instruments. With a master's degree in economics, she helps investors make informed investment decisions through her insightful commentaries. More...


More Resources for the Stocks in this Article

TickerPOWR RatingIndustry RankRank in Industry
DWAHYGet RatingGet RatingGet Rating
IRTGet RatingGet RatingGet Rating

Most Popular Stories on StockNews.com


Why Are Stocks Floating Higher?

Why are stocks breaking above 6,000 once again? When will they make news highs? And what is an investor to do now? Seasoned investor Steve Reitmeister shares his thoughts in this updated commentary.

How is the Stock Market Like a Helium Balloon?

Stocks have finally broke above 6,000 for the S&P 500 (SPY). The more important question is what comes next? Steve Reitmeister provides his answer in his latest market commentary.

Has the Bull Market Run Out of Steam?

It seems the S&P 500 (SPY) advance has stalled and cant crack above strong resistance at 6,000. Why is that happening? And what happens next? Read on for the answers...

Investors Remain “Cautiously Optimistic”

The S&P 500 (SPY) has made great advances since the lows of early April. Yet seem to be stuck under resistance at 6,000. What happens next depends on tariff talks. So let’s talk about the latest news on that front.

Bull Market Til Proven Otherwise

The phrase that paid for investors in 2025 was “Bull market til proven otherwise” Steve Reitmeister explains why in his latest market update and preview of top stock picks.

Read More Stories

More Daiwa House Industry Co. Ltd. ADR (DWAHY) News View All

Event/Date Symbol News Detail Start Price End Price Change POWR Rating
Loading, please wait...
View All DWAHY News