Best Value REITs
For those interested in value REIT stocks, there are a few options that can serve as an easy point of entry, as well as potential for income with competitive dividend yields.
Physicians Realty Trust (DOC)
With a market cap of more than $4 billion and a dividend yield of 4.96%, DOC offers access to medical office space. Large regional and national health systems rent space from DOC for specialties like oncology and surgery.
Additionally, DOC spreads its holdings across more than 30 states. While healthcare is always needed, aging baby boomers are growing this market. Investing in an REIT stock with potential in that area could be one way to take advantage of future trends.
W.P. Carey Inc. (WPC)
This is one of the best REIT stocks because it offers exposure to a wide variety of properties. It has a market cap of more than $14 billion and the dividend yield is 5.44%. Some of the properties included in this REIT are warehouse and industrial buildings, as well as self-storage properties and office space.
In addition to properties in the United States, WPC also has exposure in Europe, adding geographic diversity to the mix.
Iron Mountain (IRM)
Iron Mountain is interesting because it specializes in physical storage and doesn’t have any major competitors. The company owns properties that store valuable antiquities, artwork and documents. It also offers digital storage, and plans to expand that side of the operation.
Not only is the dividend yield at 5.39%, but the dividend has increased every year for the past seven years. IRM has a market cap of more than $13 billion.
Fast-Growing REITs
If you’re looking for REIT stocks that are growing at a rapid pace, and could potentially deliver big results in the next couple of years, here are some interesting possibilities:
NETSTREIT (NTST)
This REIT stock is recent — it formed in 2020. The company specializes in free-standing properties with tenants that are rated at investment grade.
So far, the dividend yield is only ay 3.07%, but it has a market cap approaching $1 billion already, and it has potential for growth in the future.
Global Medical (GMRE)
Global Medical is a healthcare REIT. It has the potential for growth in the future as concerns about aging boomers drive the potential for more medical properties. This REIT has a market cap of $979 million and a dividend yield of 5.44%, creating modest income and growth opportunities.
Postal Realty (PSTL)
For those looking for the best REIT stocks with growth potential based on some type of scalability and stability, Postal Realty can be an attractive choice. This REIT owns post office properties in 47 states. As you might expect, it leases its properties to the United States Postal Service.
There’s a chance for scale, and the price is relatively low right now. PSTL has a market cap of just over $266 million and a dividend yield of 4.59%.
REITs That Are Picking Up
These are REIT stocks that might begin gaining steam soon. Take a look at these for ideas for the future:
Equity LifeStyle Properties (ELS)
This REIT stock owns properties mainly located in vacation and resort destinations where people rent out space for RVs, manufactured homes and resort cottages. The tenants own the structures but rent the land they sit on. This has potential for growth, especially considering that ELS has many of its properties located near coasts and other vacation areas.
It has a market cap of more than $15 billion on ELS, with dividend yield of 1.77%.
STAG Industrial (STAG)
If you want to take advantage of the continuing e-commerce boom, STAG might be a good choice. This REIT stock is picking up steam, with almost half of its properties related to e-commerce. With the need for e-commerce in the future, as well as support in situations like the global pandemic, STAG has potential.
The market cap for STAG is over $6 billion, and the dividend yield is 3.49%.
Americold Realty Trust (COLD)
With farm-to-table becoming increasingly popular, Americold is a potential up-and-comer. The company owns cold-storage warehouses and its customers include large international food distributors like Unilever and Kroger.
The market cap is approaching $10 billion and COLD has a dividend yield of 2.36%.
Best REIT ETFs
If you want to expand your portfolio then it might make sense to have a collection of REITs. It’s possible to find the best REIT exchange-traded funds (ETFs) and get more diversity in your holdings. Here are some ETFs to consider as you increase your portfolio exposure to real estate:
Vanguard Real Estate Index Fund ETF Shares (VNQ)
With a market cap of more than $77 billion, VNQ tracks companies that own real estate across the U.S. This is an index ETF composed of REITs, so you get access to the wider real estate market. The current dividend yield is 2.34%.
iShares Global REIT ETF (REET)
If you’re looking for more geographic diversity, REET tracks companies in developing and developed markets around the world. The U.S. is included, but you also have the potential for growth since this ETF also tracks emerging markets. The market cap is more than $3 billion and the dividend yield is 2.25%.
Real Estate Select Sector SPDR Fund (XLRE)
For those more interested in large-cap real estate companies, XLRE can be a decent choice. This REIT ETF focuses on real estate companies in the U.S. that are part of the S&P 500. The market cap is more than $3 billion and the dividend yield is 3.04%.
How Did We Choose These REIT Stocks?
We looked through a variety of expert analysis and lists to identify REIT stocks that offer different types of investments, as well as relatively low price points. We looked at dividend yield as well to help identify some of the best REIT stocks. This list isn’t comprehensive, and it shouldn’t be used as investment advice. Instead, it’s important for you to carefully consider your own investment goals and financial situation before you invest in any asset.
Final Thoughts
REIT stocks are one way to diversify your portfolio by adding real estate exposure. You can access REIT stocks through investment apps like TD Ameritrade, Public and E*TRADE.
However, it’s important to do your own research and due diligence when choosing any investment. While these REITs offer potential, you could still lose your investment. Carefully consider the strategy and assets that are likely to work best for you and help you reach your goals.
