REITs offer a unique blend of income and capital return potential from exposure to real estate. These dividend-paying entities own or finance real estate, making them a popular choice for investors seeking exposure to the real estate market without directly owning property. In this article, we will discuss the best REITs to invest in right now based on value, dividends, and growth.
The past year has been a tough one for real estate investment trusts (REITs), with total returns (price + dividends) for the equity REIT market down over 5%. However, the market has shown signs of recovery in recent months, and some REITs have performed exceptionally well.
When looking for the best REITs to invest in, it is important to consider factors such as dividend yield, growth potential, and the underlying real estate assets. Some of the top-performing REITs in April 2023 include iStar Inc. (STAR), Getty Realty Corp. (GTY), and VICI Properties Inc. (VICI).
iStar Inc. is a diversified REIT that invests in a range of real estate assets, including office, industrial, and residential properties. The company has a dividend yield of 3.5% and has seen strong growth in recent years, with a five-year average annual growth rate of over 20%.
Getty Realty Corp. is a retail-focused REIT that owns and leases properties to convenience stores and gas stations. The company has a dividend yield of 4.5% and has seen steady growth over the past five years, with an average annual growth rate of around 6%.
VICI Properties Inc. is a gaming-focused REIT that owns and operates casino properties. The company has a dividend yield of 4.1% and has seen strong growth over the past year, with a total return of over 30%.
When choosing the best REIT investments, it is important to consider your investment goals and risk tolerance. Some REITs may be more focused on growth, while others may be more focused on income generation. Additionally, some REITs may be more volatile than others, depending on the underlying real estate assets.
For investors looking for a more diversified approach to REIT investing, there are several REIT ETFs that pay dividends and offer exposure to a range of real estate assets. Some popular options include the Vanguard Real Estate ETF (VNQ), the iShares Global REIT ETF (REET), and the SPDR Dow Jones REIT ETF (RWR).
Investors looking for high-growth potential may be interested in REITs that focus on emerging markets or niche real estate sectors, such as data centers or healthcare properties. Some top-performing REITs in these areas include Digital Realty Trust Inc. (DLR), Healthcare Trust of America Inc. (HTA), and American Tower Corp. (AMT).
For investors looking for value, there are several REITs trading at a discount to their net asset value (NAV). These REITs may offer a higher dividend yield and potential for capital appreciation as the market corrects. Some top value REITs include Simon Property Group Inc. (SPG), Prologis Inc. (PLD), and Public Storage (PSA).
In conclusion, REITs offer a unique blend of income and capital return potential from exposure to real estate. When looking for the best REITs to invest in, it is important to consider factors such as dividend yield, growth potential, and the underlying real estate assets. Investors should also consider their investment goals and risk tolerance when choosing the best REIT investments.
Ticker symbols: STAR, GTY, VICI, VNQ, REET, RWR, DLR, HTA, AMT, SPG, PLD, PSA.
