These 3 Mortgage REITs Have Yields Of Over 13% And Are Trading For Far Less Than They’re Worth – BrightSpire Capital (NYSE:BRSP), Great Ajax (NYSE:AJX)

The VanEck Mortgage REIT Income ETF MORT is down roughly 31% year-to-date, as a series of interest rate hikes by the Federal Reserve has sent a shock through real estate-related industries. Mortgage REITs allow investors to join the real estate market without owning the physical property. Investors have the opportunity to benefit from the interest generated from properties, and real estate investment trusts are required to distribute at least 90% of their income.

Mortgage real estate investment trusts (REITs) boast a five-year average dividend yield of 10.8%, the highest yield out of various REIT sectors, as of Sep. 30, 2019, reported SP Global. Here are three dividend mortgage REITs with yields above the average in the sector.

Also Read: 2 Mortgage REITs With Soaring Yields And Short-Term Loans That Perform Better With Rising Interest Rates

Great Ajax Corporation AJX is offering a dividend yield of 13.85% or $1.08 per share annually, conducting quarterly payments, with a track record of increasing its dividends for two consecutive years. Great Ajax is an externally managed REIT that acquires, invests and manages a portfolio of mortgage loans secured by single-family residences, single-family properties, multifamily residential, and commercial mixed-use properties. The REIT also holds real-estate-owned (REO) properties acquired upon foreclosure.

Great Ajax has over $1.5 billion in total assets and has a book value of $13.75 per share as of Sep. 30, 2022.

TPG RE Finance Trust Inc. TRTX is offering a dividend yield of 13.66% or 96 cents per share annually, using quarterly payments, with a track record of increasing its dividends once in the past year. TPG RE Finance Trust is a commercial real estate finance company that originates first-mortgage loans greater than $50 million in primary and select secondary markets throughout the United States.

TPG has over $5.3 billion in total assets and has a book value of $14.28 per share as of Sep. 30, 2022.

BrightSpire Capital Inc. BRSP is offering a dividend yield of 11.40% or 80 cents per share annually, making quarterly payments, with a track record of increasing its dividends once in the past year. BrightSpire Capital is an internally-managed commercial credit REIT focused on originating, acquiring, financing and managing a diversified portfolio of commercial real estate debt and net lease real estate investments predominantly in the United States.

BrightSpire Capital has more than $5.7 billion in total assets and has a book value of $10.87 per share as of Sep. 30, 2022. 

To read about the latest developments in the industry, check out Benzinga’s real estate home page.