The Fed’s attempts to keep the red-hot inflation under check by aggressively hiking the benchmark interest rates have kept the economy under severe stress. The GDP decline for two consecutive quarters makes many economists believe the economy has already entered a recession.
Investors worried about a recession can consider investing in Real Estate Investment Trusts (REITs). REITs own and operate income-producing real estates such as apartments, warehouses, self-storage facilities, malls, and hotels.
REITs are required to return a minimum of 90% of taxable income to shareholders in the form of dividends every year. Therefore, investing in a stable REIT could help generate steady income and survive a market downturn. Alliance Global Group, Inc. (ALGGY) is one such REIT with a solid track record of paying large and growing dividends.
It develops residential condominium units, subdivision lots, townhouses, office and retail developments, sells townhouses and tourism estate properties; develops integrated resorts; leases office and retail spaces; and operates and manages hotels.
The stock has declined 15.5% in price over the past nine months and 10.2% over the past year to close the last trading session at $8.53.
Here’s what could influence the performance of ALGGY in the upcoming months:
Robust Financials
ALGGY’s group revenues increased 18% year-over-year to PHP37.50 billion ($675.21 million) for the first quarter ended March 31, 2022. The company’s attributable income increased 52% year-over-year to PHP3.90 billion ($70.22 million). In addition, its net profit rose 67% year-over-year to PHP5.40 billion ($97.23 million).
Favorable Analyst Estimates
Analysts expect ALGGY’s revenue for fiscal 2022 and 2023 to increase 2.7% and 26.7% year-over-year to $2.80 billion and $3.55 billion, respectively.
Higher Profitability
In terms of trailing-12-month gross profit margin, ALGGY’s 43.09% is 45.3% higher than the 29.65% industry average. Likewise, its 12.3% trailing-12-month net income margin is 80.9% higher than the industry average of 6.8%. Furthermore…
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