In this article, we will discuss 10 of the best REIT stocks under $10 that investors can consider buying now. Before we dive into the list, however, it's important to understand what REITs are and how they work.
REITs are real estate investment trusts that own and operate income-producing properties. They are required by law to distribute at least 90% of their taxable income to shareholders in the form of dividends, which makes them an attractive investment for income-seeking investors.
Real estate investment trusts have struggled in recent years due to surging interest rates, which have made borrowing more expensive and reduced the appeal of REITs' high dividend yields. However, some REITs have weathered the storm better than others and offer opportunities for investors.
Here are 10 REITs under $10 to consider buying:
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BSR Real Estate Investment Trust (BSRTF) - This REIT owns and operates multi-family residential properties in the United States. It has a dividend yield of over 5% and is trading at a discount to its net asset value (NAV).
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Alexandria Real Estate Equities (ARE) - This REIT specializes in life science and technology properties. It has a dividend yield of 2.9% and has delivered solid returns over the past year.
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Vonovia SE (VONOY) - This German REIT owns and operates residential properties in Germany and Austria. It has a dividend yield of over 2% and is trading at a discount to its NAV.
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American Tower Corp (AMT) - This REIT owns and operates wireless communications towers and other infrastructure. It has a dividend yield of just 1.5%, but has delivered strong returns over the past year and is well-positioned for growth.
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Sabra Health Care REIT (SBRA) - This REIT specializes in healthcare properties, including skilled nursing facilities and senior housing. It has a dividend yield of over 7% and is trading at a discount to its NAV.
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Gladstone Land Corp (LAND) - This REIT owns and operates farmland in the United States. It has a dividend yield of over 3% and has delivered solid returns over the past year.
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EPR Properties (EPR) - This REIT invests in entertainment, recreation, and education properties, including movie theaters, golf courses, and charter schools. It has a dividend yield of over 6% and is trading at a discount to its NAV.
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National Health Investors (NHI) - This REIT specializes in healthcare properties, including assisted living facilities and medical office buildings. It has a dividend yield of over 5% and has delivered solid returns over the past year.
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Spirit Realty Capital (SRC) - This REIT invests in single-tenant commercial properties, including retail and restaurant properties. It has a dividend yield of over 6% and is trading at a discount to its NAV.
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Washington Prime Group (WPG) - This REIT owns and operates shopping malls and retail properties. It has a dividend yield of over 11% and is trading at a significant discount to its NAV.
Investing in REITs can be a good way to generate income and diversify your portfolio. However, it's important to do your research and understand the risks involved. Some REITs may be more heavily impacted by interest rate fluctuations than others, so it's important to consider each company's unique circumstances before investing.
Overall, REITs are heavily discounted relative to their NAV, which makes them an attractive investment opportunity for value-seeking investors. BSRTF, ARE, and VONOY are three REITs that are particularly well-positioned for growth and offer investors a once-in-a-decade buying opportunity.
