Analysts Expect 11% Gain for First Trust S&P REIT Index Fund ETF (FRI)

Analysts forecast an 11% gain for the First Trust S&P REIT Index Fund ETF (FRI) based on the average analyst 12-month forward target price for its underlying holdings. The ETF is currently trading at $27.90 per unit, and analysts see it reaching $30.99 per unit. Three of FRI's underlying holdings with notable upside to their analyst target prices are Braemar Hotels & Resorts Inc (BHR), Sila Realty Trust Inc. (SILA), and LXP Industrial Trust (LXP).

Analysts are projecting an 11% gain for the First Trust S&P REIT Index Fund ETF (FRI), with the average 12-month forward target price for its underlying holdings indicating a potential rise from the current trading price of $27.90 per unit to $30.99 per unit. This positive outlook is driven by expectations of strong performance from several key holdings within the ETF, including Braemar Hotels & Resorts Inc (BHR), Sila Realty Trust Inc. (SILA), and LXP Industrial Trust (LXP).

Braemar Hotels & Resorts Inc (BHR) has been a notable performer, recently announcing its fourth-quarter 2025 dividend declarations for both its common and preferred stock, as reported by Financial Content. The company's dividend yield hovers between 7.38% and 7.87% annually, which often attracts investors seeking higher-yielding assets. However, the reported negative payout ratio, where dividends are not fully covered by earnings, raises concerns about the company's long-term sustainability.

Sila Realty Trust Inc. (SILA) and LXP Industrial Trust (LXP) are also expected to contribute significantly to the ETF's performance. Both companies operate in sectors that have shown resilience and growth potential, particularly in the post-pandemic recovery. Their strong fundamentals and strategic positioning are likely to be key drivers of the ETF's gains.

Investors should closely monitor the performance of these underlying holdings, as well as the broader market trends and economic conditions, to gauge the likelihood of the projected 11% gain. While the current outlook is positive, the future performance of the ETF will depend on the ability of its holdings to deliver on analysts' expectations and the broader market dynamics.