Real Estate Investment Trusts (REITs) manage income-generating properties of many kinds. The best of them have consistently paid attractive dividends, helping to explain the appeal; That’s not the only perk, though. As with basically any sector, there’s a risk factor, but there are definitely times when it makes sense. More often than not, the industry is regarded as a safe haven.
REITs can offer financing at the lowest rates and generate more profits to distribute to investors— they’re exempt from corporate income tax as long as they fulfill IRS requirements. REITs thereby have room to expand, allowing them to provide more generous dividends.
REITs took a major blow in 2022 due to jumps in the funds rate. However, many are optimistic about a resurgence. For income-focused investors seeking to supplement dividend stocks, REITs could be the best choice since they provide real estate exposure at a low price. Investing in them will diversify a portfolio, and the real estate industry is poised for substantial long-term growth.
Now, I’ll break down my three current REIT favorites. They share strong balance sheets, YoY growth, dividends, and of course, what the experts think. The analysts agree that we should buy and hold these real estate investment tickers:
Iron Mountain Inc (IRM)
Iron Mountain (IRM) helps businesses archive and retrieve data from paper files and computer tapes. IRM operates in two main divisions. Records and data management, secure shredding, and consumer storage are all part of the services provided by IRM’s Global Business division. Meanwhile, IRM’s Global Data Center offers solutions to secure mission-critical assets and manages customers’ IT infrastructure. Businesses, organizations, and institutions in medicine, finance, law, insurance, tech, and media are all proudly served by IRM. Herman Knoust founded IRM in 1951, with headquarters in Boston, MA, and Portsmouth, NH.
IRM has only shown consistency, a damn valuable thing these days. IRM has a market cap of over $15 billion and shows TTM revenue of $5.10 billion at $1.90 per share; IRM has a gross profit margin of 68.52% and a return-on-equity of 74.63%. IRM shows impressive YOY growth in the right areas and has forecasted 5-year EPS growth of 12.1%. IRM is expected to post $1.3 billion in sales at 34 cents per share for the current quarter. IRM has a dividend yield of 4.75%, with a quarterly payout of 62 cents ($2.48/yr) per share. Analysts have given IRM a median price target of $59, with a high of $68 and a low of $20, and its new price range indicates a potential 30% upside over current pricing. Stock analysis gives IRM a well-earned buy rating.
Prologis Inc (PLD)
Prologis, Inc (PLD) is a fully integrated commercial real estate firm. The core of PLD consists of its strategic capital and real estate operations. PLD is responsible for the acquisition and development of storage and distribution centers. PLD manages and evaluates its O&M (owned and operated) assets. Several properties owned by PLD are either consolidated or unconsolidated co-investments. Properties are leased, controlled, developed, acquired, and sold by PLD. It has logistical facilities in 19 countries across four continents, all of which it owns, runs, and designs. PLD’s main offices may be in Mexico, Amsterdam, Tokyo, Shanghai, and Singapore. In 1983, Hamid Maghadam founded PLD, headquartered in San Francisco, CA.
PLD has an impressive track record, and one of my favorite distinctions is that it has only very rarely missed vs. analysts during earnings seasons. PLD most recently beat EPS and revenue projections by 14.91% and 9.33%, respectively. Over 12 months, PLD boasts a growing market cap of just over $111 billion, showing revenue of just about $6 billion at $4.38 per share. PLD has a net profit margin of 59.50% and a debt-to-equity of 44.55%. With a 1.02 beta to keep it safe from volatility, PLD has a 10-day average volume of almost 3 million. PLD has a dividend yield of 2.90%, with a quarterly payout of 87 cents ($3.48/yr) per share. Analysts have assigned PLD a median price target of $140, with a high of $193 and a low of $125; This represents an over 60% potential increase from current pricing. PLD’s tenacity deserves, at least, one of those 18th-hole golf claps. Analysts agree: Buy PLD and Hold.
VICI Properties Inc (VICI)
VICI Properties (VICI) is an REIT concentrating on the gambling, hotel, and entertainment sectors. VICI leases properties to well-known companies, including MGM Grand Las Vegas, Caesars Palace Las Vegas, and the Venetian Resort. VICI issued its quarterly dividend earlier this month. VICI‘s Board of Directors declared a high yield and reasonable quarterly payout on common shares— I’ll certainly mention it again if I visit VICI in the future.
VICI is down slightly by over 2% YTD, but it carries an impressively with a very safe 0.98 beta, a hefty market cap of $30.7 billion, at a TTM EPS of $1.25 per share. In the last 12 months, VICI has shown $2.6 billion in revenue, a net profit margin of 43.69%, a P/E of 25.25x, and a forward P/E of 13.7x. While 2022 wasn’t perfect for VICI, it most recently beat analysts’ projections on EPS and revenue by 9.9% and 2.3%, respectively. YOY growth is evident in each crucial category. VICI currently has a dividend yield of 4.93%, with a quarterly payout of 39 cents ($1.56/yr) per share. Analysts give VICI a median price target of $38, with a high of $46, bringing an almost 50% upside at that level of its range. The experts tell us to Buy VICI Now.
Read Next – [Fed Control] 4 Urgent Steps to Shield Your Money
The Federal Reserve is about to acquire new powers to track and even control your money
Starting as soon as May 2023!
The Fed calls its new program FedNOW.
I call it Fed Control.
Why? Because it not only aims to centralize private payments systems — like Apple Pay, PayPal, Venmo, Zelle and others — for the sake of making them “more efficient” …
It also could give the Fed direct surveillance access — and ultimately control — over nearly all banking transactions by individuals and private enterprise.
Finding it hard to believe our government would snoop around in your personal transactions? Really?
Then just remember what the NSA and FBI did under their so-called PRISM program that spied on the personal emails, chats and videos of millions of Americans who were not even suspected of any crime or bad behavior!
FedNOW will give the Federal Reserve access to data that is even more critical — on virtually every penny you spend, receive or transfer.
Fortunately, there are four basic steps you can take to protect your money.
I lay them out in my free emergency broadcast.
Just click here, and my presentation should start playing on your screen immediately (no registration required).
