Five Diversified REITs You Might Consider Investing In – Finance-Base
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November 26, 2021
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Five Diversified REITs You Might Consider Investing In

If you’re thinking about diversifying your investment portfolio, there are several 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 if you select an REIT that is diversified. Publicly owned REITs must maintain transparency so that you can learn about the different kinds of real estate that the trust is currently managing prior to deciding. Here are the 5 most 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 organization is comprised of involvement with 890 properties. One common factor is the fact that all of the properties are leased to tenants with a high occupancy rate of 99.8%. The diverse types of holdings include warehouse property, 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 also 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%. More notable tenants include True Value, Marriott, and U-Haul.

4. Vornado Realty Trust

New York Stock market: VNO

Vornado Realty Trust maintains property holdings within the New York City area. The diversification of the investment is a combination of retail and work place. This trust is involved with high-end office properties in neighborhoods which are considered to be of high value. The tenant list is every bit 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 due to its stability and impressive past performance. We were not able to find information about the rates of occupancy considering the current pandemic but the figures for that trust look promising because the history has shown stability and ideal performance. It appears that the management decisions that have been made up to this time have served the best interests of companies and for the investors.

3. Empire State Realty Trust

New York Stock market: ESRT

Empire State Realty Trust is really 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 near future projections make this one of the safest investments when it comes to 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 annually increases is good according to analysts. Future revenue growth is anticipated because of high demand for leases in the holdings. A recent snapshot puts the cost 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. On the million square feet of retail space continues to be 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 from the market. The company focuses on three main investment types inside the real estate arena including entertainment, education, and recreation industries. Even though the quarantines from the recent coronavirus pandemic have placed activities on hold, the return continues to be 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 cinemas, 70 early education and day care centers, and other properties. This can be a diverse group of property types and with people starving for recreation and entertainment, once the country begins to open up for more public openings, this may be a company that you’ll desire 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 looking for social interaction.

1. Boston Properties

New York Stock market: BXP

Boston Properties is known for its holding inside the office space sector of the property 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, there are 13 more properties currently being built. 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 having a dividend yield of 2.8%, a 5-year annual dividend development of 7.9 % and a 12.2% 12-month return. A snapshot reveals a share price of $136.75.

Conclusion

Even with the economy slowed by the current pandemic, the financial arena continues to be carrying on and investments are still being made. If you make a good study of the companies with the highest possibility of bounce back now, it can be an excellent time to invest. Life rolls on and real estate remains a good investment option for diversification.

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