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Top 5 Companies in the Residential REITs Industry With the Highest Debt to EBITDA Ratio (BRG, NXRT, SBY, MORE, APTS)

By Amy Schwartz

Below are the three companies in the Residential REITs industry with the highest debt to EBITDA ratios. This ratio indicates how many years of EBITDA would be necessary in order to pay back all the debt (assuming Debt and EBITDA are constant). Typically, this ratio is considered to be alarming when it is greater than 3.0 but this can vary and should be looked at within the context of the industry.

Bluerock Residen ranks highest with a a debt to EBITDA ratio of 21.7. Following is Nexpoint Resi with a a debt to EBITDA ratio of 12.8. Silver Bay Realt ranks third highest with a a debt to EBITDA ratio of 11.9.

Monogram Residen follows with a a debt to EBITDA ratio of 10.9, and Preferred Apar-A rounds out the top five with a a debt to EBITDA ratio of 10.5.

SmarTrend recommended that its subscribers protect gains by selling shares of Preferred Apar-A on December 20th, 2017 by issuing a Downtrend alert when the shares were trading at $19.74. Since that call, shares of Preferred Apar-A have fallen 27.4%. We are now looking for when a new Uptrend will commence and will alert SmarTrend subscribers in real time.

Keywords: highest debt to ebitda ratio amex:brg bluerock residen nexpoint resi :sby silver bay realt :more monogram residen preferred apar-a

Ticker(s): NXRT APTS