Best REITs to invest in


New investors are rarely risk-hungry. Knowing that investing like an educated gamble on this luck can turn bad in no time, they prefer to take it slow, build balanced portfolios, and cultivate investments that are easy to liquidate if they spook. As a result, few novice investors have invested money in real estate; Most look at REITs instead.

Real estate investment funds, or Real estate investment fundsSecurities invested in real estate or mortgages and traded on major stock exchanges. A highly liquid way to invest in real estate, REITs offer high dividend yields without the obligations (or hassle) of owning real estate outright.

However, not every REIT is suitable for every investor, and new investors in particular should look for diversified, high-quality REITs that allow for balance and slow, reliable growth. Since most REITs specialize in one type of real estate, REITs can be difficult to find for novice investors. Let’s take a look at some of the best REITs to invest in.

What are REITs?

Before we talk about some of the best REITs to invest in, let’s first take a deeper look at what exactly a REIT is.

REITs provide a unique opportunity to invest in real estate without having to purchase physical property. REITs are public companies that own and manage income-producing real estate such as office buildings, shopping malls, apartments, and hotels. REITs provide investors with a steady stream of income through dividends and capital appreciation. It also offers the potential for long-term growth and stability.

When investing in REITs, it is important to remember that they are subject to market fluctuations and can be affected by economic conditions. Additionally, you should always research each REIT thoroughly before investing and ensure you understand the risks associated with each investment. Finally, it is important to monitor your investments regularly and adjust your strategy as needed.

How do I choose the right REIT?

When selecting the best REITs to invest in, it is important to consider factors such as geographic diversification, tenant mix, leverage levels, liquidity, management quality, financial strength, dividend yield, and total return potential.

It’s also important to research each REIT’s property portfolio and its track record of performance over time. In addition, you should consider the company’s dividend policy and its ability to generate steady cash flow.

By doing your due diligence and researching the best REITs to invest in, you can ensure that you are making a wise investment decision.

What are some of the best REITs to invest in?

Here are what Humble Money feels are some of the best and safest REITs to invest in:

WP Carey Inc.

WP Carey Inc. (NYSE: WPC) is a global global investment fund, managing more than 900 properties in 19 countries – although two-thirds of those properties are in the United States. The company’s portfolio is diversified, primarily including commercial real estate including office, industrial, retail and warehouse space. Impressively, WP Carey maintains an occupancy rate of 99.1 percent, claiming that well-known renters like U-Haul and Marriott.

Triple Net Rent Fund, WP Carey tenants are responsible for variable expenses, such as maintenance, building insurance and property taxes. As with other net-rent real estate funds, WP Carey holds long-term leases — ranging from 10 to 25 years — with rent increases built in. This reduces income volatility, making WPC an excellent entry-level REIT.

Vornado Realty Trust

Possibly the largest REIT — not just of its kind but of all REITs — Vornado Realty Trust (NYSE: VNO) is focused entirely on office and retail space in the New York City area, primarily investing in buildings in Manhattan. In doing so, Vornado became NYC’s largest street retailer operator, notably owning several properties in sought-after areas such as Fifth Avenue and Times Square.

New York is easily one of the strongest real estate markets in the country – let alone the world. In each decade, the value of first-class office buildings in New York doubled, proving that Vornado’s strategy is not only viable, but highly profitable.

Empire State Realty Trust Inc.

Another REIT that operates primarily in New York City, Empire State Reality Trust (NYSE: ESRT) invests almost exclusively in office buildings – incl The Empire State Building, owned and named by REIT and One Grand Central Place. More than 93 percent of its holdings are office space, while the remaining 7 percent is a small amount of retail property.

Empire State is one of the best REITs to invest in. While not as diversified as the other REITs on this list, it remains an ideal choice for beginners because it promised (and demonstrated) enhanced growth potential. The company has a long history of success and has consistently generated strong returns for investors over time.

By focusing on renting vacant space (which is more than 1 million square feet) and maximizing income in other ways, Empire State has increased its penetration to 22.4 percent, nearly double the average for its peer group.

Do you want an easy way to invest in REITs?

RealtyMogul allows you to invest in REITs on an easy to use platform. Best of all, it is open to non-accredited investors.

EPR properties

EPR Characteristics (NYSE: EPR) is proud to be a specialized investment fund that invests in unique sectors of the non-commodity market – such as recreational, recreational and educational real estate. For example, within the EPR portfolio, investors will find multiplex movie theaters, water parks and golf facilities as well as charter public schools, private schools and early childhood education institutions. Like WP Carey, the EPR is a triple-lease REIT, eliminating nearly all of the risk and volatility of capital.

EPR’s investment philosophy focuses on Millennial mindset, which prioritizes experiences over material goods. Moreover, the demand for quality education facilities continues to grow. Overall, the EPR strategy may seem unorthodox, but it is no less promising than other REITs.

VEREIT, Inc.

VEREIT, Inc. (NYSE: VER) is a large, well-diversified REIT that owns more than 4,100 properties. However, the REIT is perhaps the riskiest on this list because most of its portfolio consists of retail and restaurant properties, which have remained in disrepair thanks to the Great Recession and competition from e-commerce.

Fortunately, VEREIT mainly invests in discount-oriented, non-discretionary, or service-based businesses, all of which promise to compete well in the current market. Plus, VEREIT claims more than 98 percent occupancy, with an average of 10 years left on leases, so new investors can buy now and walk away from the REIT retail drama.

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Digital real estate trust

Digital Real Estate Fund (NYSE: DLR) is a REIT that specializes in data center and technology-related real estate. The company owns and operates more than 200 properties in the United States, Europe, Asia and Latin America.

Digital Realty Trust has a proven track record of delivering consistent returns to investors over time. The company also offers an annual dividend yield of 4.3 percent, making it an attractive option for income-focused investors.

In addition to its strong fundamentals, Digital Realty also has an experienced management team focused on creating shareholder value through strategic acquisitions and development projects. The company’s portfolio is well diversified across different markets and regions, which helps reduce risks for investors.

public storage

Public Storage (NYSE:PSA) is one of the world’s largest self-storage REITs with more than 2,400 properties across the United States, Europe, and the Asia Pacific region.

Public storage is a great option for investors looking to diversify their investment portfolios with REITs that have a proven track record of success. Public storage offers investors access to a wide range of properties, including residential, commercial, industrial and mixed-use facilities.

The company’s portfolio is well diversified across different markets and regions, which helps reduce risks for investors. Public Storage also has an experienced management team focused on creating shareholder value through strategic acquisitions and development projects.

In addition to its strong fundamentals, Public Storage also provides investors with attractive dividend yields. The company currently pays an annual dividend yield of 3.3 percent, which is higher than the average REIT.

American Tower Company

American Tower Corporation (NYSE:AMT) is a REIT that owns and operates more than 170,000 telecom sites in the United States, Latin America, India, and Africa. The company’s portfolio includes cell towers, small cells, distributed antenna systems (DAS), fiber networks, and other wireless infrastructure.

American Tower has a long history of providing strong returns to investors. The company also offers a dividend yield of 2.2 percent, making it an attractive option for income-focused investors.

Ventas, Inc.

Ventas, Inc. (NYSE: VTR) is a healthcare REIT that owns and operates more than 1,200 seniors’ residences, medical office buildings, skilled nursing facilities, and other healthcare-related properties.

The company has a long history of delivering strong returns to investors and currently offers a dividend yield of 4.6 percent. Ventas also has a well diversified portfolio that includes real estate in the United States, Canada and the United Kingdom.

In addition to its strong foundations, Ventas also has an experienced management team focused on creating shareholder value through strategic acquisitions and development projects.

Iron Mountain

Iron Mountain (NYSE: IRM) is a REIT that specializes in warehousing and information management services. The company owns and operates more than 1,400 facilities across the United States, Europe, Latin America, and the Asia Pacific regions.

Iron Mountain has a proven track record of delivering consistent returns to investors over time. The company also offers a fixed dividend income of 5.3 percent, making it an attractive option for income-focused investors.

In addition to its strong fundamentals, Iron Mountain also offers investors access to a wide range of real estate, including data centers, warehouses, and other specialized storage facilities. The company’s portfolio is well diversified across different markets and regions, which helps reduce risks for investors.

American Health Care Trust

Healthcare Trust of America (NYSE:HTA) is one of the largest healthcare real estate investment trusts in the United States, with more than 1,400 properties nationwide. The Company’s portfolio includes medical office buildings, hospitals, residential facilities for the elderly, and other healthcare-related properties.

Healthcare Trust of America has a long history of providing strong returns to investors. The company also offers an attractive annual yield of 4.7 percent, making it an attractive option for income-focused investors.

In addition to its strong foundations, Healthcare Trust of America also has an experienced management team focused on creating shareholder value through strategic acquisitions and development projects in the healthcare industry.

Are you looking for the best REITs to invest in?

These days, investing exclusively in the stock market can put your money at greater risk. In this current economy, diversifying your portfolio is key if you want your portfolio to continue to generate profits.

Whether you’re an income-focused investor, an institutional investor, or someone completely new to the investing game, REITs are a great way to safely diversify your portfolio and hedge against inflation.

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