Real estate investment trusts (REITs) were one of the top-performing sectors in the S&P 500 last year, with a total return of 46.2%, compared to 28.7% for the index as a whole. Investors that own the finest REITs may be in line for even better returns in 2022. The consistent strength of REIT dividends is the key reason these stocks continue to be so appealing to investors year after year.
REITs, unlike most other firms, generally stand to gain from inflation. This is because REIT contracts are structured in such a way that allows for regular rent increases tied to the consumer price index (CPI). Inflation raises the value of REIT assets, increasing the value of their portfolios. In these times of market turbulence, resilient REITs are a safe bet. Many of the finest REITs provide significantly high returns.
After researching REITs, I’ve narrowed it down to three favorites of mine. Wall Street analysts agree that these tickers would make for wise, timely additions to our portfolios:
Extra Space Storage Inc (EXR)
Extra Space Storage Inc (EXR) is a self-storage real estate investment trust with its headquarters in Cottonwood Heights, Utah. EXR had 2,096 facilities in 41 states and Washington, D.C., as of December 31, 2021, totaling roughly 160.9 million square feet of net rentable space in 1.5 million storage units. It is the country’s second-biggest owner of self-storage facilities and the largest self-storage property manager. EXR also has solar systems on several of its sites and was named on the Solar Energy Industries Association’s “Top 25 Corporate Users by Number of Solar Installations” list.
EXR has what’s become a favorite distinction of mine to mention when recommending stocks: It has exceeded Wall Street’s earnings forecasts for the last four consecutive fiscal quarters. EXR most recently beat EPS by 13.28% and revenue by 2.96%. Year-over-year, EXR shows revenue growth of 23.74%. For EXR’s current quarter, it offers $469.4 million in sales, at an EPS of $1.49. EXR has a current dividend yield of 3.34%, with a quarterly shareholder payout of $1.50 per share. EXR has a consensus price target of 224.00 among analysts that provide 12-month price forecasts, with a high of 246.00 and a low of 156.00. The median estimate is up 24.53% from its last price, and EXR’s buy rating is well-earned.
STAG Industrial Inc (STAG)
STAG Industrial, Inc (STAG) is a real estate investment trust that focuses on the purchase and management of single-tenant industrial properties in the United States. STAG has devised an investing strategy that lets investors discover a potent mix of income and growth by focusing on this sort of property. Benjamin S. Butcher created the firm on July 21st, 2010, and it is headquartered in Boston, MA.
STAG reported profits for the first quarter of 2022 on May 3rd, topping market expectations. Sales for the quarter were $159.21 million, increasing 18.8% over the same period the prior year. STAG shows healthy year-over-year growth in crucial categories: revenue [growth] of 18.81%, EPS of 130.77%, and profit margin of 78.77%. Currently, STAG has an annual dividend yield of 4.32%, with a quarterly payout of 36 cents per share. The consensus price target for STAG from analysts that provide 12-month price estimates is 45.00, with a high of 54.00 and a low of 37.00. The median estimate is up 33.41% from its previous price, and the consensus also gives STAG a strong buy rating that has held steady all year.
Camden Property Trust (CPT)
Camden Property Trust (CPT) is a publicly listed real estate investment trust based in the United States that invests in apartment buildings. The corporation owns stakes in 171 apartment communities in the United States, totaling 58,588 apartment residences as of November 30th, 2021. Richard J. Campo and D. Keith Oden, CPT‘s founders, named the corporation based on a combination of their last names. Fortune has rated the firm 8th on its list of the “Best Companies to Work For.”
CPT shows sales of $334.2 million and an EPS of 50 cents per share for its current quarter. It has had some EPS misses regarding earnings but has consistently beat forecasts on the revenue side. Year-over-year, CPT boasts revenue growth of 17.27%, EPS growth of 145.16%, and net profit margin growth of 119.7%. CPT has a current annual dividend yield of 2.60%, with a 94 cents per share quarterly payout. CPT has a consensus price target of 175.00 among analysts that provide 12-month price forecasts, with a high of 208.00 and a low of 158.00. The median forecast is up 21.07% from current pricing, and CPT’s buy rating makes it a stock worth considering.
