Learn more about Vanguard Personal Advisor Services. Here are seven value REITs flying under the radar of investors and priced at a discount to industry peers in 2021. She has an Overweight rating on DOC shares, which is the equivalent of a Buy. Repeat customers account for about 30% of new rentals, meaning that finding tenants is as simple as letting a restaurant chain or furniture store owner the fund is already leasing to know that there’s a new piece of property available. It owns 954 properties across the U.S. and the U.K., representing nearly 97,000 patient beds and a portfolio net asset value of $10.2 billion as of March 31. Gladstone Commercial – Dividend Yield 2.3%. Market Capitalization: $388.37 million. Over $3 billion worth of properties have been acquired since 2018 and W.P. During the March quarter, Bluerock's occupancy rate rose 150 basis points from the year prior to 95.8%. You’ll want to make sure you don’t overpay when buying shares. Updated on May 21st, 2021. Property Investments and rental property. As the office markets improve and City Office continues to see demand from businesses leaving the big cities, this REIT has the potential for a triple-digit total return in 2020. Canada REITs invest in residential and commercial properties all across the nation. © 2021 Money Morning All Rights Reserved. While some have been concerned about the pandemic’s long-lasting effects on the business, as we get to the end of the crisis and the company continues to show resiliency through the process, this concern is becoming a thing of the past. Choice Properties is a Real Estate Investment Trust that owns, manages and develops retail and commercial real estate across Canada. That’s an investment opportunity that will turn a head or two. This is another one of the value REITs on this list that has steady dividend growth. Many REITs are poised to return to growth in 2021 and beyond. Dividend Cuts and Suspensions: Who's Paring Back. Dividend payout ratio: 53.38%. Moreover, the company is playing a critical rollout of next-generation 5G technology. If there's one industry that's going to benefit the most from a coronavirus vaccine in 2021, it's real estate. The company's dividends have increased seven years in a row. Its portfolio of net leases consists of 1,215 properties, comprising 142 million square feet leased to 351 tenants, with a weighted-average lease term of 10.6 years and an occupancy rate of 98.9%. Save my name, email, and website in this browser for the next time I comment. Many REITs are poised to return to growth in 2021 and beyond. DOC shares are reasonably priced as far as value REITs go, trading at a 17 times multiple to forward adjusted FFO and a 9.5% discount to REIT competitors. }); Choose from the topics below to receive our This is yet another company that has a long history of generating positive FFO growth and paying high dividends. However, the real value here may be in the long-term opportunities the REIT is likely to address as the global view toward cannabis continues to change, making this a fund that’s hard to ignore. Essentially, when rental income is generated by the company, that income is spread out through its investors by way of dividends. The average lease term of the REIT's portfolio is four years and the occupancy rate is 89%. Like Equinix, Digital Realty Trust is a data center REIT focused on the acquisition and rental of data center space for some of the world’s leading players in tech. The average customer has stored records with Iron Mountain for 15 years and it enjoys a 98% customer retention rate. That’s an incredible increase, warranting the recent growth seen in the fund’s share price. The REIT's growth comes mainly from acquisitions and the company has pre-funded its 2021 pipeline. The end of the coronavirus pandemic is on the horizon. With the communications infrastructure market being massive and growing, it should come as no surprise that there’s more than one REIT focused on the sector on the list of the top 10. That’s where AmeriCold Realty Trust comes in. 10 Best REITs for the Rest of 2021 Real estate stocks have done well in 2021; several signs suggest this outperformance could continue. Only just over 20% of its leases will expire through 2024, with a large percentage of these leases expected to be renewed. The REIT maintains a dividend payout from adjusted FFO in a low to mid-60s range and a long-term target leverage ratio at a conservative 4.5 times to 5.5 times EBITDA. Presents guidelines on how to invest successfully by becoming a "prudent speculator," explaining the role of psychology in risk taking while covering such topics as spotting an undervalued stock and knowing when to sell. Found insideWhen looking to invest in this type of REIT, one should consider several factors before jumping in. For instance, the best apartment markets tend to be ... All Rights Reserved. J.P. Morgan Securities analyst Anthony Paolone recognized this value gap in June and upgraded his rating on WPC shares to Overweight (Buy). The views expressed are those of the author of the article and not necessarily those of other members of the Money Crashers team or Money Crashers as a whole. WPC's portfolio consists of industrial, warehouse, office, retail, and self-storage properties leased to single tenants on a long-term basis. The yield you will receive from your initial investment is: 6% + 6% - 3.5% or 9.5%. Not to mention, thanks to its recent acquisition of the fourth largest cold storage company in the world, Agro Merchants Group, AmeriCold Realty Trust recently brought a couple thousand more customers to its book and greatly expanded funds from operations. REITs, as measured by the FTSE Nareit All Equity REITs Index, have slightly outperformed the broader market with a total return of 33.5% over the past 12 months compared to the S&P 500’s total return of 31.4%, as of Aug. 27, 2021. With a competitive dividend yield of 3.24%, a 1 Year Total return of 35.35%, and a 5-year average return of 8.28% annually, VNQ is …. This is a guest contribution by Rick Orford. © 2021 Money Crashers, LLC. What they do not have is the population density that causes pandemics to thrive, near-constant civil unrest, and rising crime rates. Lisa Helps black professionals find passive income that is affordable and easy to accomplish within 3-5. years. Spanish Version Also Available. 3. LTC Properties – Dividend Yield 5.9%. The DOC fund currently owns more than 265 medical complexes across 31 states, with 96% of its properties leased. Whitestone has paid a monthly dividend consistently since 2010. OHI has delivered nearly 9% annualized FFO growth since 2004 and 17 consecutive years of dividend hikes, including an 11% average annual increase over the past five years. Shares of Equity Residential yield a little over 4% right now. The grim headlines about unpaid rents and empty office buildings should fade away when a coronavirus vaccine gets distributed and we get back to normal. Properties in a REIT portfolio may include apartment complexes, data … Like other data centers, Digital Realty Trust became a beneficiary of increased demand as a result of the change in the way consumers shop and entertain themselves due to COVID-19. Omega Healthcare Investors. If you're looking for broader exposure to the market, you've come to the right spot, because in this article I'm going to be going over some of the best Canadian REIT ETFs for 2021. CIO's key markets include Dallas, Denver, Orlando, Phoenix, Portland, San Diego, Seattle, and Tampa. Another attractive aspect of the business model is the fact that the fund is known for producing longer-term contracts than other health care REITs, generating further stability in the investment. The content on Money Crashers is for informational and educational purposes only and should not be construed as professional financial advice. This high-quality REIT receives top rankings from UBS strategist Keith Parker, who named OHI among his favorite real estate picks in June. In fact, it’s the largest data center REIT on the market today, and one of the largest REITs of any kind with a market capitalization of nearly $75 billion. Not to mention, the average remaining lease term for the company is 14 years, adding significant stability to the investment. Rent collections have improved in 2021 as businesses have reopened and the REIT delivered a good March quarter with adjusted FFO per share up 4.3% from the year prior. Join the conversation. Each boasts improving FFO per share (funds from operations, or FFO, is an important REIT earnings metric), generous dividends and solid fundamentals. Its tenants paid as 98% of expected rents in the third quarter. The cost-of-living adjustment for Social Security benefits for next year is expected to be the largest since 1982. In 1960, the first real estate investment trust (REIT), was born. And many of its customers are household names. These are the types of cities that many of those fleeing bigger cities (like New York and Los Angeles) will be moving to in 2021. The REIT is guiding for 7% to 12% adjusted FFO per share growth this year. ados.run = ados.run || []; The REIT owns 2,656 properties and has 522 tenants across 49 U.S. states. Required fields are marked *, Sign me up for the Money Morning newsletter. In any real estate market, Staged homes sell faster or sell for more money--or both. With Home Staging, you'll learn how to play up your home's strong points and improve its presentation. Like others on this list, the fund also has a strong history of growth in both revenue and dividends. That makes it important to research the balance sheet of any fund you’re interested in investing in. The fund owns more than 1,200 properties around the world, 500 stores, and more than 37 million square feet of rentable space. The fund has had a compelling track record of growth in FFO, which has increased by at least 15% annually over the past 10 years, even in the face of the COVID-19 pandemic. In addition, STOR is one of the best value REITs in terms of delivering strong dividend growth – raising its payout an average of 6.4% annually since 2015 – and a better-covered dividend relative to its peers. Over the past five years, IRM has averaged a 5.1% annual dividend growth rate. Shares of BRG are valued at 17 times forward adjusted FFO and a 20% discount to industry peers. Another one of the value REITs trading at a discount to peers is Omega Healthcare Investors (OHI, $36.86). Although we will see many businesses and potential tenants leaving key markets, they won't leave Equity Residential's premier properties. The fact is that space is limited, and as the red-hot housing market suggests, inventories are low. The REIT serves around 225,000 customers worldwide and has no major competitors in the physical storage business. Prologis is an industrial REIT with a focus on logistics and warehouse buildings. However, this article should not be viewed as a solicitation to purchase shares in any security and should only be used for entertainment and informational purposes. Found insideThis book is for anyone who needs simple, straightforward advice on how to start investing wisely. In 2012, he decided he was ready to break free from the 9 to 5 rat race. After a tough 2020, real estate and REITs should be back in favor in 2021, and we expect these three top REITs to be among the industry leaders. In the first quarter of 2021, the REIT’s operating revenue was up 5.3% at $227.5 million while net operating income rose 6.2% to $146.7 million. Furthermore, the REIT has consistently increased both revenue and dividends over the course of the past 15 years, proving to be resilient as the coronavirus swept the world. Aug. 2, 2021, 12:26 PM. The Best Investments in 2021 Index Funds (ETFs or Mutual Funds) Experts recommend low-cost, diversified index funds.These are funds with low expense ratios, or fees, that are great for all investors. Apartments remain one of real estate's most attractive sectors. With the goal of investing in property being to generate income, it’s important that any fund you invest in be known for impressive dividend payments. Apartment and multifamily loan rates range from 2.12% for a 35 year fixed FHA loan, to 3.79% for a 5 year fixed community bank loan. As another leader in the communications infrastructure space with a proven history of increasing revenues and dividends — and expectations of continued expansion and innovation in the 5G space — CCI is an investment that’s worth your attention. Step 1: Download the Complete REIT Excel Spreadsheet List at the link above.. With a market cap of more than $94 billion, it’s one of the largest companies in the world. This is one of the best and largest "triple net lease" REITs. What are the best Fundrise alternatives for real estate investing? Whitestone REIT (WSR, $7.97) owns neighborhood shopping centers primarily in fast-growing areas of the Sunbelt. By investing in these funds, you’ll be able to own your piece of real estate without having to put up the large investment required to purchase property. Moving forward, the fund is expected to complete several more accretive acquisitions, further expanding its book of income opportunities for its investors. While REITs have emerged as one of the best-performing stock market sectors this year, not all REITs are alike. Occupancy rates aren’t important for some real estate funds, like those that operate networks of communications towers. The Best REIT ETFs In 2021 - Sure Dividend. He has conducted risk assessment projects for clients in 27 countries, and consulted on policy and financial operations for some of the nation's largest financial institutions, including a $1.5 trillion credit fund, a $43 billion credit and auto loan giant, as well as two of the largest Wall Street banks by assets under management. References to products, offers, and rates from third party sites often change. Found insideThis book will teach the reader how to: • invest in crowdfunded real estate syndicates • understand key financial concepts used in the industry • diversify their investment portfolios • read between the lines of investment contracts ... Our goal is to help our millions of e-newsletter subscribers and Moneymorning.com visitors become smarter, more confident investors. You can invest in a publicly traded REIT, which is listed on a major stock exchange, by purchasing shares through a broker. You can purchase shares of a non-traded REIT through a broker that participates in the non-traded REIT’s offering. There is also the potential for appreciation of 50% or more in 2021 as REITs come back into favor. Innovative Industrial Properties Inc. (NYSE: IIPR) Build a foundation for investing success — get your finances in order, weigh your investment options, understand the risks, and work with real estate pros You have to pay to play — raise capital, finance your purchases, and secure the ... W.P. REITs are publicly listed investment instruments, and their pricing is subject to the vagaries of the stock markets while Fractional ownership platforms allow one to invest in a private holding structure that has a very low correlation with the public markets, as their shares are not publicly traded. With a market cap of around $4 billion, this isn’t the biggest fund on the list, but it’s one that shouldn’t be ignored. REITs, as measured by the FTSE Nareit All Equity REITs Index, have slightly outperformed the broader market with a total return of 33.5% over the past 12 months compared to the S&P 500’s total return of 31.4%, as of Aug. 27, 2021. Found insideThe book not only introduces the DST but also guides the reader through the investment process by providing perspective in the choosing of brokers, sponsors, and properties as well as a more in-depth analysis of the DST offering (John ... Like H&R and Smartcentres, some of the REITs have large market caps and portfolios that span across several industries, making them ideal as a core real estate asset. The company has 351 tenants, with the top 10 representing approximately 21% of the portfolio. However, Whitestone has a plan for reducing debt from 9 times EBITDA (earnings before interest, taxes, depreciation, and amortization) currently to 6 times to 7 times over the next two years. As a result of these changes, a vast majority of apartment and residential REITs have rebounded to new heights in 2021. ados_load(); Found insideMastering the Art of Commercial Real Estate Investing is a comprehensive guide about the time-proven principles and common-sense practices for successfully investing in real estate. Iron Mountain (IRM, $44.20) is an industry leader in physical record storage, which includes not only paper documents but also art, antiquities and other high-value items. Best REITs to Buy for 2021 Bob Ciura picks the best REITs to buy for 2021. The stock market is a volatile place, and while wealth is often built there, it can also be lost. Retirees Likely to Receive Significant Bump in Social Security Benefits in 2022, 5 Top Dividend Aristocrats to Beef Up Your Portfolio, The Kiplinger Washington Editors, Inc., is part of the Dennis Publishing Ltd. Group.All Contents © 2021, The Kiplinger Washington Editors, Real estate stocks have done well in 2021; several signs suggest this outperformance could continue. The following list presents stocks of the companies which belong to the broader Hotel REIT sector or the stock market index, their corresponding prices as of given date, and the percentage gains realized: 1) Ashford Hospitality Trust Inc ( AHT) Price Gain: 435.91% 2021 year-to-date.