Which reit to buy

Investment Guides. Real Estate Financing Resources. Tax Resources. Real Estate Resources. Comprehensive real estate investing service including CRE. Learn more. Already a member? Sign in here. Access to timely real estate stock ideas and Top Ten recommendations. Learn More. There's nothing spooky about these three segment leaders and solid market performers.

Real estate has long been the go-to investment for those looking to build long-term wealth for generations. Let us help you navigate this asset class by signing up for our comprehensive real estate investing guide. The best real estate investment trusts REITs are those that can produce market-beating total returns for investors, which is a combination of their dividend yield and stock price appreciation as their market capitalization rises.

To deliver those gains, a REIT must be able to grow the income generated from its real estate portfolio so that it can increase its dividend. Here's a closer look at three top REITs with outsized upside potential that an income investor can buy this month.

Before we dive into the top REIT stocks to buy, we need to set some ground rules for what makes a publicly traded REIT a worthwhile investment in the first place. Three characteristics stand out as being important drivers of outperformance in REIT investing:. Many or all of the products featured here are from our partners who compensate us. This may influence which products we write about and where and how the product appears on a page.

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REITs are companies that own and often operate income-producing real estate, such as apartments, warehouses, self-storage facilities, malls and hotels. Still, that potential for growth carries risks that vary depending on the type of REIT.

Want to see best performing REIT stocks and funds? Jump to our list below. Congress created real estate investment trusts in as a way for individual investors to own equity stakes in large-scale real estate companies, just as they could own stakes in other businesses. This move made it easy for investors to buy and trade a diversified real-estate portfolio.

This is a big draw for investor interest in REITs. Have a minimum of shareholders after the first year of existence. This means that over time, REITs can grow bigger and pay out even larger dividends. They own the underlying real estate, provide upkeep of and reinvest in the property and collect rent checks — all the management tasks you associate with owning a property. Instead, they own debt securities backed by the property. For example, when a family takes out a mortgage on a house, this type of REIT might buy that mortgage from the original lender and collect the monthly payments over time.

Meanwhile, someone else — the family, in this example — owns and operates the property. NLY 8. AGNC SLG WY JLL SUI SPG CBRE Article Sources. Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate.

You can learn more about the standards we follow in producing accurate, unbiased content in our editorial policy. Compare Accounts. The offers that appear in this table are from partnerships from which Investopedia receives compensation. This compensation may impact how and where listings appear. Investopedia does not include all offers available in the marketplace. Related Articles. Partner Links. These tenants, which include quick-serve restaurants, auto repair shops, early childhood education facilities and medical and dental practices to name a few, represent over different industries.

At present, the REIT owns 2, properties spread across 49 states and rents to tenants. Its leases have year weighted-average remaining terms and support a Warren Buffett recognizes this real estate stock's success in borrowing cheap to acquire high-yielding properties.

This REIT owns buildings, HTA plans to grow by expanding its footprint in densely populated metro areas of the U. Longer term, HTA should benefit from rising demand for healthcare from an aging U. HTA shares trade at a Bullish investors may like this real estate stock for its reliable FFO and dividend growth and acquisition opportunities in a market where demand for MOB is rising. This REIT's portfolio consists of 28 properties comprising 47 million square feet, roughly 17, hotel rooms, restaurants, bars and nightclubs and four championship golf courses.

Leases have terms that average More good news is that gaming is on the rebound in with U. Commenting on the MGM acquisition, Truist Securities gaming analyst Barry Jonas saw it highlighting for investors the attractiveness of gaming real estate.

Jeffries gaming analyst David Katz likes VICI's continued expansion during the pandemic and aggressive appetite for growth. The REIT owns 84 properties, mostly office space, warehouses and outpatient facilities, and 7. The U. The amount of real estate leased by the U. Given federal budget constraints, experts expect this trend favoring leasing over ownership to continue into the future. Barriers to entry are high due to complicated procurement processes and lease protocols that favor experienced landlords like Easterly.

Easterly's revenues rose Additionally, plans by the Biden administration to bring federal employees back to the workplace could create tailwinds for the REIT in DEA hiked its dividend 1. Its tenants are major regional and national health systems such as dialysis provider Fresenius Medical Care FMS and post-acute services specialist Kindred Healthcare.