The following table includes data on over 100 big-yield REITs, sorted by REIT industries (and then market cap). And as you can see, recent performance has been mostly terrible with 2-year total returns very negative, and lots of REITs sitting near 52-week lows. The carnage has clearly been worse for some industries more than others, and short-interest remains high in certain areas (indicating lots of investors believe there is still more pain to come). In this quick note, we briefly review the REIT market by sub-industries and then highlight a very select few big-dividend REITs that appear attractive and worth considering for investment.
Income Equity Portfolio: 3 New Buys, 2 Positions Trimmed
Attractive Industrial REIT: 4.4% Yield, Discounted Price
Industrial REITs have sold off particularly hard this year, but one name in particular is attractive if you can handle its strategy and risks relative to industrial REIT peers. In this report, we review this particular REIT’s business, industry outlook, valuation, dividend and risks. We conclude with our opinion on investing in this 4.4% dividend yielder.
Industrial REIT: 4.5% Yield, Undervalued, To Benefit from Sector Growth
The Real Estate Investment Trust (“REIT”) we review in this report offers a well-covered 4.5% dividend yield, and it continues to benefit from improving fundamentals in the US industrial REIT sector. Its unique strategy (of focusing on primary and secondary markets) continues to generate higher rental yields while also delivering superior rental growth. And with a payout ratio of only around 59%, the dividend is on solid footing. Moreover, the property portfolio continues to be highly resilient with ~99% rent collections throughout the pandemic. Yet despite the strong fundamentals, it trades at a significant valuation discount versus peers. In this report, we review the business, its health, valuation, dividend safety and risks. We conclude with our opinion on whether it offers an attractive opportunity for long-term income-focused investors.