Five Diversified REITs You Might Consider Investing In
If you’re thinking about diversifying your investment portfolio, there are some high recommendations being made for REITs. An attractive feature about investing in an REIT is that just one investment gets you into the action on a number of different properties when you choose an REIT that is diversified. Publicly traded REITs must maintain transparency so you can learn about the different kinds of real estate that the trust is currently managing before you decide. Here are the 5 most highly recommended REITs to consider investing in now.
5. W.P. Carey
New York Stock Exchange: WPC
W.P. Carey is a diversified REIT regarding property types, geographical locations, industries and tenants. The company is comprised of involvement with 890 properties. One common factor is that all of the properties are leased to tenants with a high occupancy rate of 99.8%. The diverse types of holdings include warehouse real estate, retail properties, office, and industrial. Notably, 5% of the properties are self storage, 30% are industrial, 16% are retail, 25% are office, 14% are warehouse and the remaining 10% fall under other categories. The yield is 5.6% and the price per share hangs around $71.11 in a recent snaphsot.The debt to enterprise value is 36.8%. Some more notable tenants include True Value, Marriott, and U-Haul.
4. Vornado Realty Trust
New York Stock Exchange: VNO
Vornado Realty Trust maintains property holdings in the New York City area. The diversification of this investment is a combination of retail and office space. This trust is involved with high-end office properties in neighborhoods that are considered to be of high value. The tenant list is equally impressive featuring U.S. corporations of notable standing and success. The annualized growth rate over the past 10 years is 5.4%. Nearly one quarter of the owned properties are retail frontage in upper Fifth Avenue and Times Square. A snapshot of share prices was recently capture at $74.74. Vornado Realty Trust is one of the most highly recommended REIT investments because of its stability and impressive past performance. We were not able to find information about the rates of occupancy in light of the current pandemic but the figures for the trust look promising as the history has shown stability and excellent performance. It appears that the management decisions that have been made up to this time have served the best interests of companies as well as for the investors.
3. Empire State Realty Trust
New York Stock Exchange: ESRT
Empire State Realty Trust is a diversified REIT. Holdings are concentrated in the metropolitan area of New York. Ownership includes 700,000 square feet of retail space in Manhattan, along with the ownership and operation of 14 office properties. The Empire State Building is one of them. Real estate holdings for Empire State Realty Trust extend into Westchester County, New York with two properties and three in Connecticut. The payout ratio is low and although it may not be ideal at the present, the future projections make this one of the safest investments in terms of dividend and increases for the future. It’s one that should be considered if you’re looking at diversification and future benefits for long-term investments. The outlook for year over year increases is good according to analysts. Future revenue growth is expected because of high demand for leases in the area of the holdings. A recent snapshot puts the price of shares at $20.58. This company has plans to continue to expand into redevelopment opportunities in the next 12 months to further diversify its portfolio and expand its revenue growth. Over a million square feet of retail space has been identified for their redevelopment plans.
2. EPR Properties
New York Stock Exchange: EPR
EPR Properties is one of the most attractive REIT investments currently because it is a specialty investment into select segments of the market. The company focuses on three main investment types within the real estate arena including entertainment, education, and recreation industries. Although the quarantines from the recent coronavirus pandemic have placed activities on hold, the return has been attractive and it is expected to pick up again soon. EPR Properties owns 12 ski areas, 34 gold entertainment complexes, 20 water parks, 160 Megaplex movie theaters, 70 early education and child care centers, and other properties. This is a diverse group of property types and with people starving for recreation and entertainment, when the country begins to open up for more public openings, this may be a company that you’ll want to be a part of. It’s maintained stability, but the trends for increased revenue are likely to move upwards as citizens flock to newly opened venues in search of social interaction.
1. Boston Properties
New York Stock Exchange: BXP
Boston Properties is known for its holding within the office space sector of the real estate industry. Some of the most notable holdings include ownership of prime real estate in Los Angeles and San Francisco, California, Washington D.C., Boston, MA, and in New York City. This includes ownership of the Prudential Center in Boston, Times Square Tower in NYC, and there are 13 more properties currently under construction. Although there have been lags due to the pandemic, the outlook for a spring back is very good. The market value of BXP is $21.1 billion with a dividend yield of 2.8%, a 5-year annual dividend growth of 7.9 % and a 12.2% 12-month return. A snapshot reveals a share price of $136.75.
Even with the economy slowed by the current pandemic, the financial arena is still carrying on and investments are still being made. If you make a good study of the companies with the highest potential for bounce back now, it can be an excellent time to invest. Life rolls on and real estate remains a good investment option for diversification.