Top REIT stocks to buy
Investing in shares of leading stocks is a key component of effective long-term investing. Factors like whether it is the best deal you can get now, dividend returns for your money, and long-term growth prospects can determine the most suitable investment for you. Recently, most high-quality real estate investment trust (REIT) companies rediscovered their footing and have performed well. So, here are some of the best REITs to invest in:
National Retail Properties
Even though it is not quite as large as Realty Income, it still has a tremendous scale with about 3,300 buildings spread across 48 states and leased to 370 tenants, not to mention a more than 99% occupancy rate, making it one of the best REITs to invest in today. No tenant accounts for more than 5% of the portfolio, and for those worried about stability, the following tenants would endure the end of the world: BJ’s Wholesale, Fikes, and 7-Eleven. This has contributed to the dividend growth at National Retail Properties, which has increased every year for more than three decades. This includes a recent 3.8% increase to the quarterly share price of 55 cents.
S.L. Green Realty Corp.
One of the key owners and landlords of office buildings, SL Green Realty Corp. has interests in 62 structures with a combined square footage of 33.6 million. SL Green recently hit a 52-week low of $35.77 due to rising interest rates and concerns about recession, but it has recovered well. Its shares were up 5.63% recently, and the most recent closing price was $41.95. Office REITs, such as SL Green, have performed well, disproving predictions that offices would no longer be used as workplaces. SL Green distributes a monthly dividend of $0.3108, which translates into an annual payout of $3.73 and a respectable 8.8% yield. By historical standards, SL Green is undervalued, also indicated by the five-year average yield of 4.95%. The FFO (funds from operations) nevertheless provides adequate protection for the yearly dividend, with a payout ratio of only 55%.
Digital Realty Trust Inc.
Digital Realty focuses on industrial buildings that hold physical servers for companies that use cloud storage as part of their operations. With a high quarterly dividend payout of $1.22 per share, Digital Realty offers a low annual dividend yield of just 4.44%. Tech giants, including IBM, Oracle, Meta, and Lumen Technologies, are a few of its clientele, making it one of the best REITs to invest in today.
CubeSmart
CubeSmart (NYSE: CUBE) has taken STAG Industrial’s place at the moment. Self-storage REIT CubeSmart has more than 1,300 properties spread across 39 states in the country. Shares of CubeSmart increased by 4.76%; although it has already risen 11.8% above its $36.82 mid-October low, it is still well below its $57.34 52-week high. For CubeSmart, the current dividend yield is 4.35. The company’s yearly dividend is $1.72, and its projected FFO is $2.51. The dividend payout ratio as a percentage of FFO is 68%. Even though this is a bit high, there is still room for future dividend coverage.
Gaming and Leisure Properties Inc.
The first gaming REIT on the list, Gaming and Leisure Properties Inc. owns 57 gaming establishments and allied properties around the country, including hotels. The business oversees triple-net lease contracts for owners of gaming facilities. The recent growth of GLPI highlights the gaming industry’s recent recovery. Since 2015, GLPI has paid annual dividends of more than $2 per share. A 5.7% dividend, or 71 cents per quarter, is now being offered.
Prologis Inc.
An established REIT, Prologis Inc. (NYSE: PLD) owns and manages more than 5,000 industrial logistics properties in the country and 18 other nations. Founded in 1983, the corporation has led the way in REIT stock appreciation. With a 2.8% annual dividend yield, it is more growth-oriented than income-oriented, even though it pays a $3.16 yearly dividend. Prologis had a fantastic month in November, growing by 0.35%. This was the first month following the purchase of Duke Realty, which added 480 additional properties to the portfolio of Prologis.
Sun Communities
Sun Communities (NYSE: SUI) is a residential REIT that specializes in owning, developing, leasing, and selling marinas, RV resorts, and mobile home parks in the country and in Canada and the United Kingdom. The company has witnessed remarkable growth over the last few years due to the pandemic-related RV boom and the increase in demand for more cheap housing choices. However, it is not the highest-paying dividend REIT with just a 2% dividend yield. Nevertheless, it has excellent profitability and long-term growth prospects and is currently one of the finest discounted buys.
So, these are some of the best REITs to invest in, as they can help boost your investment portfolio.