It also pursues broad geographic and tenant diversification to further reduce risk. Now that you have the tools to identify high-quality REITs, the next section will show some of the benefits of owning this asset class in a diversified investment portfolio. W. P. Carey generated FFO-per-share growth at a rate of 6% annually between 2009 and 2019, which was a very solid growth rate for a real estate investment trust. Virtus Investment Partners’ InfraCap REIT Preferred ETF (PFFR, $25.40) is, like PFXF, among the few preferred stock ETFs that come with a twist. Keep reading this article to learn more. High occupancy and rent collection bodes well for the sustainability of the company’s dividend payout. Real estate investment trusts – or REITs, for short – can be fantastic securities for generating meaningful portfolio income. STAG has an added advantage due to the company’s exposure to e-commerce properties, which gives it access to a key growth segment in real estate. As a result, REIT … Its most recent dividend increase was a solid 6.5% raise in February. The trust owns, operates and leases more than 40,000 cell towers and 80,000 route miles of fiber across every major US market, helping it support data infrastructure across the country. All things considered, this was a relatively impressive performance for Essex, as the U.S. economy fell into a deep recession over the course of 2020. Revenue declined 2.1% compared to the prior year, driven by a 12.2% decline in Service revenue, partially offset by a 3.8% increase in Storage revenue. For instance, 98% of REIT preferred stocks in the Index REIT Preferred Stock Index are structured such that dividends are cumulative. REITs run unique business models. Accordingly, dividend yield will be the primary metric of interest for many REIT investors. Federal Realty’s competitive advantages include its superior development pipeline, its focus on high-income, high-density areas and its decades of experience in running a world-class REIT. There are currently 183 U.S. real estate investment trusts or REITs in our database. Iron Mountain is a storage and information management REIT. The stock has a 3.5% current dividend yield, and the company has increased its dividend for 26 consecutive years, placing it on the exclusive list of Dividend Aristocrats. The currently high dividend yields of REITs is not an isolated occurrence. Revenue of $1.04 billion fell 2% year-over-year, while Q3 adjusted EBITDA of $370.0 million beat consensus of $352.2 million. It is Manhattan’s largest office landlord, and currently owns 96 buildings totaling 41 million square feet. In fact, this asset class has traded at a higher dividend yield than the S&P 500 for decades. The company also increased its quarterly dividend by 11%. Carey will navigate the coronavirus crisis. Iron Mountain withdrew its previously announced guidance for 2020. In the 2020 third quarter, SLG grew its same-store net operating income by 2% over last year’s quarter but its occupancy rate dipped from 95.0% to 94.2% and its funds from operations (FFO) per share remained flat at $1.75. According to MSCI, which compiles and tracks the index, the MSCI US REIT Index generated total annual returns of 10.6% per year since December 30, 1994. The company recently notified investors that tenants that have requested rent relief equal to just ~1% of annual base rent, a promising figure that indicates STAG is holding up relatively well during the coronavirus crisis. It can also maintain its dividend, which is well-covered with a healthy payout ratio of 51% expected for 2020. List of U.S. Real Estate Investment Trusts or REITs. In the 2019 fourth quarter, net income per unit was $0.39 per share while FFO per unit was $0.85, a sizable difference between the two metrics. Step 3: Use the filter functions ‘Greater Than or Equal To’ and ‘Less Than or Equal To’ along with the numbers 0.05 ad 0.07 to display REITs with dividend yields between 5% and 7%. Bonus: Listen to our interview with Brad Thomas on The Sure Investing Podcast about intelligent REIT investing in the below video. Below we have ranked our top 10 REITs today based on qualitative strength and total return potential. It is focused on single-tenant industrial properties and has ~450 buildings across 38 states in the United States. About this page + View less A real estate investment trust (REIT) is a company that owns, operates or finances income-generating real estate across a range of industries. It also generates about 20% of its annual revenue from senior housing developments. More than the vast majority of other business types, they are primarily involved in the ownership of long-lived assets. means, collectively, the REIT Series A Preferred Stock and the REIT Series B Preferred Stock. How To Use The REIT List To Find Dividend Stock Ideas. Omega Healthcare Investors is one of the premier skilled nursing focused healthcare REITs. Federal Realty is on the exclusive list of Dividend Kings. We examine the 3 best REIT ETFs below. In the quarter, the REIT collected 96.9% of total billings for office, 70.0% of billings for retail and 92.6% of total billings. So far, STAG’s key financial metrics are holding up well. FFO is determined by taking net income and adding back various non-cash charges that are seen to artificially impair a REIT’s perceived ability to pay its dividend. Click here to download your Complete REIT Excel Spreadsheet List now, #10: Federal Realty Investment Trust (FRT), Bill Gates’ Stock Portfolio: Every Holding Analyzed, The Best High Dividend Stocks: 200+ Companies With 5%+ Dividend Yields, The Best Monthly Dividend Stocks: All 58 Stocks That Pay Monthly Dividends, The Complete MLP List: 115 High-Yield, Tax-Advantaged Securities. Furthermore, it only owns ~0.5% of the assets in its target universe, giving it an enormous growth runway. The dividend is highly secure. Essex Property Trust invests in west coast multi-family residential proprieties where it engages in development, redevelopment, management and acquisition of apartment communities and a few other select properties. Carey benefited from 99% rent collection in October, fueling hopes that the worst is behind it. While the S&P 500 Index on average yields less than 2% right now, it is relatively easy to find REITs with dividend yields of 5% or higher. The trust is active in several geographic markets across the US and internationally, and plans to expand its international operations further. Most REIT Preferred Stocks are unrated. This will help to eliminate any REITs with exceptionally high (and perhaps unsustainable) dividend yields. For those unfamiliar with Microsoft Excel, the following images show how to filter for REITs with dividend yields between 5% and 7% using the ‘filter’ function of Excel. As per the feedback received from its tenants, management expects its office tenants to work from home at a 50% rate in September. It is the largest brand of self-storage services in the US. REITs widely offer higher dividend yields than the average stock. Iron Mountain operates in North and Latin America, Europe and the Asia Pacific region. We expect Essex to bounce back quickly due to the premier locations in which it owns properties. For the quarter Digital Realty’s revenue came in at $1.024 billion, representing a 3% increase compared to last quarter and 27% increase compared to Q3 2019, aided by the Interxion acquisition. However, investors are hoping the bottom is in. Omega also has an investment-grade credit rating of BBB-. The S&P U.S. Note: Yield values are as of May 14th, and subject to change. Crown Castle has a positive long-term growth outlook, which sets it apart from many other REITs which are struggling right now. As per the latest data, 55% of the tenants are publicly rated and 33% of the tenants are rated “investment grade.” The company typically does business with established tenants to reduce risk. Bluerock Residential Growth REIT Inc., a Real Estate Investment Trust (REIT) whose common stock is listed on the New York Stock Exchange (NYSE American: BRG), is offering its Series T Redeemable Preferred Stock with the following features and benefits: Step 1: Download the Complete REIT Excel Spreadsheet List at the link above. The average expense ratio is 0.45%. Total fund flow is the capital inflow into an ETF minus the capital outflow from the ETF for a … The logic is simply that the REIT escapes a level of taxation as they are required to pay out 90% of their taxable income to shareholders thus someone must pay taxes and that is the common and preferred stock owners. And, we also include our top 10-ranked REITs today. SLG benefits from reliable growth in rental rates in one of the most popular commercial areas in the world, Manhattan. With current prices and yields, you should be able to select a few that appear to meet your yield requirements. Same-property gross revenue and net operating income declined by 6.7% and 10.8%, respectively. However, Core FFO per share remained flat at $0.46 due to extensive issuance of new units. These qualities make it the most attractive REIT for investors looking for a combination of dividend yield, dividend growth, and dividend safety. Core FFO grew 17% over last year’s quarter thanks to the sustained strength of the tenants of the REIT. In the 2020 third quarter, core FFO-per-share declined 6% from the same quarter last year. For 2021, company management expects $375 million to $405 million in revenue growth from new leasing activity, plus another $90 million to $100 million in rent escalation. OHI collected over 99% of third quarter contractual rent and mortgage payments (when excluding Daybreak). Your goal is to establish which preferred will provide you the best returns. On October 29th, 2020 Digital Realty reported Q3 2020 results for the period ending September 30th, 2020. The coronavirus has hurt shipping and by extension the industrial REIT sector. Cash flows continued to grow during the last financial crisis, resulting in a strong recession performance. Therefore, we expect the company to make it through the coronavirus with its dividend intact. The future is still bright as consumers demand more and more access to data over time. REITs give investors the ability to experience the economic benefits associated with real estate ownership without the hassle of being a landlord in the traditional sense. Still, this is a decent growth rate, and we expect a similar growth rate of 3%-4% annually going forward. Thanks to its financial strength, the REIT can endure the ongoing crisis and emerge stronger whenever the pandemic subsides. From an accounting perspective, this means that REITs incur significant non-cash depreciation and amortization expenses. As an example of its operational strength, SLG recently raised its dividend by 2.8%, and also announced a special dividend of $1.6967 per share due to its asset dispositions in 2020. These qualities allow it to perform admirably, and continue growing even in a recession. The following lists provide useful information on high dividend stocks and stocks that pay monthly dividends: Thanks for reading this article. The U.S. West Coast has high economic output (California and Washington combined would have the 5th-highest GDP in the world) as well as limited supply. This compares to $365 million or $1.67 per share in the year ago quarter. Crown Castle International was founded in 1994,and has since become a powerhouse in the data infrastructure business. More recently, Digital Realty added Interxion, gaining exposure to the European cloud industry. Carey is a commercial real estate focused REIT that operates two segments: real estate ownership and investment management. The REITs chosen … Carey has a highly diversified real estate property portfolio across multiple various industry groups. How does this affect the bottom line of REITs? This gives the REIT a size and scale advantage that competitors have difficulty matching. One might think that the high payout ratios of REITs would result in inferior total return performance compared to their peers (even though they have high dividend yields). Revenues totaled $300 million, down 2% year-over-year. Just like earnings, FFO can be reported on a per-unit basis, giving FFO/unit – the rough equivalent of earnings-per-share for a REIT. These stocks have positive expected rates of return over the next five years, and high dividend yields which make them appealing for income investors. Preferred Stock Index has 1-year trailing total returns of 5.2% compared with 19.4% for the Russell 1000 as of November 30, 2020. In 2008, it was the largest of four publicly traded storage REITs. The company now expects $3.85 billion to $3.875 billion in revenue (up from $3.725 -$3.825 billion),$2.15 billion to $2.175 billion in Adjusted EBITDA (up from $2.10 -$2.125 billion), 85% to 86% occupancy(unchanged), $1.25 to $1.30 in net income per share (up from $1.20 to $1.25) and $6.10 to $6.15 in core funds from operations (up from $6.00 to $6.10). Crown Castle does not have the highest dividend yield among REITs, but it makes up for this with a high level of dividend safety as well as growth potential. Also, click on ‘Descending’ at the top of the filter window to list the REITs with the highest dividend yields at the top of the spreadsheet. Digital Realty has been very strategic in its acquisitions. Digital Realty’s chief competitive advantage is that it is among the largest technology REITs in the world. Essex Property Trust has generated impressive growth over the course of its history. W.P. REITS are some of the largest issuers of preferred stocks and some of them finance their businesses entirely with preferred and common stock issuance and avoid debt–Public Storage and PS Business Parks are the 2 that finance their businesses with preferred issuances. Because of the monthly rental cashflows generated by REITs, these securities are well-suited to investors that aim to generate income from their investment portfolios.

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