It is remarkable that the REIT collected 98% of its rental income in the second and third quarter. FRT collected approximately 85% of total third quarter 2020 billed recurring rents and 85% in October 2020. Gabelli Equity Trust, Inc. (The) 5.00% Series K … Preferred Stocks. The company’s long history of dividend payments and increases is due to its high-quality business model and diversified property portfolio. The top 10 list is ranked by 5-year expected total returns, in order of lowest to highest. The high dividend yields of REITs are due to the regulatory implications of doing business as a real estate investment trust. This will help to eliminate any REITs with exceptionally high (and perhaps unsustainable) dividend yields. Because of the monthly rental cashflows generated by REITs, these securities are well-suited to investors that aim to generate income from their investment portfolios. On March 13th, 2020 Digital Realty announced that it had completed the combination of Interxion (prior ticker: INXN),a provider of cloud data centers in Europe. The Complete REIT Spreadsheet List contains a list of all publicly-traded Real Estate Investment Trusts. STAG Industrial is the only pure-play industrial REIT active across the entire domestic industrial real estate market. Revenue declined 2.1% compared to the prior year, driven by a 12.2% decline in Service revenue, partially offset by a 3.8% increase in Storage revenue. Iron Mountain is a storage and information management REIT. Digital Realty’s dividend payout ratio (using FFO instead of earnings) is comparatively low for a REIT, projected at 73% for 2020. Keep reading this article to learn more. In addition to the full downloadable Excel spreadsheet, this article covers our top 10 REITs today, as ranked using expected total returns from The Sure Analysis Research Database. One might think that the high payout ratios of REITs would result in inferior total return performance compared to their peers (even though they have high dividend yields). You can see more high-quality dividend stocks in the following Sure Dividend databases, each based on long streaks of steadily rising dividend payments: Alternatively, another great place to look for high-quality business is inside the portfolios of highly successful investors. This gives the REIT a size and scale advantage that competitors have difficulty matching. As per the feedback received from its tenants, management expects its office tenants to work from home at a 50% rate in September. Copyright 2017-2021 Innovative Income Investor, Another $1,000 Note to Call $25 Baby Bond. Thanks to its financial strength, the REIT can endure the ongoing crisis and emerge stronger whenever the pandemic subsides. Added emphasis has been placed on dividend sustainability, which is even more important for investors to take into account during the coronavirus crisis, as it has had a particularly large impact on REITs. Furthermore, the industrial sector is typically fairly cyclical and therefore suffers during recessions. During the first quarter, the virus crisis did not have a meaningful impact, and the operating performance was quite solid. For 2021, company management expects $375 million to $405 million in revenue growth from new leasing activity, plus another $90 million to $100 million in rent escalation. PFFR | A complete InfraCap REIT Preferred ETF exchange traded fund overview by MarketWatch. Net operating income grew 15% over last year’s quarter. Most REIT Preferred Stocks are unrated. Federal Realty has a long history of dividend growth which is definitely a plus, but it remains in uncertain financial position due to its heavy exposure to retail properties that have been negatively impacted by the coronavirus pandemic. Essex Property Trust has generated impressive growth over the course of its history. Public Storage is an American international self storage company headquartered in Glendale, California, that is run as a real estate investment trust (REIT). In early November, STAG Industrial reported (11/5/20) financial results for the third quarter of fiscal 2020. However, SLG has observed improved trends lately and expects to achieve funds from operations per share of $6.60-$7.10 this year. Source of Income. This geographic diversification, coupled with the fact that demand for its services is not very cyclical, means that Iron Mountain is relatively resilient to recessions, which should help during the current crisis. The U.S. West Coast has high economic output (California and Washington combined would have the 5th-highest GDP in the world) as well as limited supply. The index is calculated on a total return basis. W.P. With preferred REITs, you receive dividends paid in cash on a quarterly basis. The REIT Directory provides a comprehensive list of REIT and publicly traded real … Essex Property Trust invests in west coast multi-family residential proprieties where it engages in development, redevelopment, management and acquisition of apartment communities and a few other select properties. Click here to download your Complete REIT Excel Spreadsheet List now, #10: Federal Realty Investment Trust (FRT), Bill Gates’ Stock Portfolio: Every Holding Analyzed, The Best High Dividend Stocks: 200+ Companies With 5%+ Dividend Yields, The Best Monthly Dividend Stocks: All 58 Stocks That Pay Monthly Dividends, The Complete MLP List: 115 High-Yield, Tax-Advantaged Securities. The stock table includes relevant common stocks, ADRs and preferred shares, and the funds table includes relevant exchange-traded funds (ETFs) and institutional share class mutual funds. These qualities allow it to perform admirably, and continue growing even in a recession. In the 2020 third quarter, SLG grew its same-store net operating income by 2% over last year’s quarter but its occupancy rate dipped from 95.0% to 94.2% and its funds from operations (FFO) per share remained flat at $1.75. Carey has a highly diversified real estate property portfolio across multiple various industry groups. Its biggest claims to fame are its A-rated balance sheet (making it one of the most conservative investments in the REIT sector) and 53 straight years of growing its dividend (the longest streak among REITs) at a highly impressive CAGR of 7%. Virtus Investment Partners’ InfraCap REIT Preferred ETF (PFFR, $25.40) is, like PFXF, among the few preferred stock ETFs that come with a twist. Its services include record management, destruction, fulfillment services, data protection and recovery, server and computer backup services, and safeguarding of electronic and physical media. The list is narrowed down further based on a qualitative assessment of business model strength, growth potential, and an analysis of debt levels. Digital Realty Trust is another attractive REIT because of the unique safety it offers during the coronavirus crisis. It is the largest brand of self-storage services in the US. SL Green is an integrated REIT that is focused on acquiring, managing, and maximizing the value of Manhattan commercial properties. The company now expects $3.85 billion to $3.875 billion in revenue (up from $3.725 -$3.825 billion),$2.15 billion to $2.175 billion in Adjusted EBITDA (up from $2.10 -$2.125 billion), 85% to 86% occupancy(unchanged), $1.25 to $1.30 in net income per share (up from $1.20 to $1.25) and $6.10 to $6.15 in core funds from operations (up from $6.00 to $6.10). The InfraCap REIT Preferred ETF tracks a market-cap-weighted index of US-listed preferred securities issued by real estate investment trusts (REITs). The first one is organic revenue growth, primarily through pricing increases. Revenues totaled $300 million, down 2% year-over-year. Preferred stocks of REITs do NOT pay qualified dividends. This is not the case. There is somereinvestment risk for preferred share investors, since REITs generally can redeem preferred stock. Its robust cash flow generation will afford it the opportunity to continue to grow, as well as pay the dividend. Sometimes you will see a payout ratio of less than 90% for a REIT, and that is likely because they are using funds from operations, not net income, in the denominator for REIT payout ratios (more on that later). This compares to $365 million or $1.67 per share in the year ago quarter. Carey benefited from 99% rent collection in October, fueling hopes that the worst is behind it. Approximately 83% of Essex’s net operating income is derived from California, with the remaining 17% from Seattle. The chart below arranges all REIT preferred stocks. By analyzing the portfolios of legendary investors running multi-billion dollar investment portfolios, we are able to indirectly benefit from their million-dollar research budgets and personal investing expertise. Its most recent dividend increase was a solid 6.5% raise in February. High occupancy and rent collection bodes well for the sustainability of the company’s dividend payout. Realty Income has declared over 600 consecutive monthly dividend payments without interruption, and has increased its dividend 109 times since its initial public offering in 1994. Depreciation and amortization expenses reduce a company’s net income, which means that sometimes a REIT’s dividend will be higher than its net income, even though its dividends are safe based on its cash flow. The logic is simply that the REIT escapes a level of taxation as they are required to pay out 90% of their taxable income to shareholders thus someone must pay taxes and that is the common and preferred stock owners. Our goal is to provide you with the information and metrics related to the Artis REIT preferreds. Buy or sell from 345 Stocks including WMC, UE, and EPR. The growth rate has slowed down over the years, as W. P. Carey’s FFO-per-share growth rate has averaged just 3% between 2014 and 2018. How does this affect the bottom line of REITs? Total fund flow is the capital inflow into an ETF minus the capital outflow from the ETF for a … Crown Castle International was founded in 1994,and has since become a powerhouse in the data infrastructure business. Due to the effect of the pandemic on its business, funds from operations have stumbled this year but they have remained fairly resilient. Realty Income owns retail properties that are not part of a wider retail development (such as a mall), but instead are standalone properties. The trust has a solid BBB+ credit rating which is high for a REIT. STAG has an added advantage due to the company’s exposure to e-commerce properties, which gives it access to a key growth segment in real estate. Essex Property Trust has achieved impressive growth for several decades, on the back of the strong west coast property market. The Indxx REIT Preferred Stock Index is a modified market cap weighted index designed to provide diversified exposure to high yielding liquid preferred securities issued by Real Estate Investment Trusts listed in the US. Click the tab on the top of the chart for either alphabetical or by current yield. The company will see a negative impact from coronavirus in 2020, but it has taken aggressive action to shore up its financial position to weather the storm. Plus, due to the defensive nature of its business and a strong performance during past recessions, we believe that W.P. View the latest ETF prices and news for better ETF investing. Contrary to their name, preferred shares just aren’t many, or even most, investors’ first choice. During the quarter, occupancy dipped from 97.0% to 96.3% but it remained decent under the prevailing business conditions. Click on the name … It also signs multi-year contracts (7-15 years) with its tenants in order to secure reliable cash flows. Revenue of $1.04 billion fell 2% year-over-year, while Q3 adjusted EBITDA of $370.0 million beat consensus of $352.2 million. These qualities make it the most attractive REIT for investors looking for a combination of dividend yield, dividend growth, and dividend safety. Crown Castle can achieve this growth through continued organic revenue increases in the low-to mid-single-digits, a bit of margin expansion as it boosts organic revenue and integrates acquisitions, as well as new revenue purchased from acquisitions. The company reported weak third-quarter results, not surprisingly because of the coronavirus pandemic. We currently expect Realty Income to generate adjusted FFO-per-share of $3.50 for 2020. The report was very similar to the previous five reports. The stock has a 3.5% current dividend yield, and the company has increased its dividend for 26 consecutive years, placing it on the exclusive list of Dividend Aristocrats. The portfolio was 92.2% leased as of September 30th. The currently high dividend yields of REITs is not an isolated occurrence. As an example of its operational strength, SLG recently raised its dividend by 2.8%, and also announced a special dividend of $1.6967 per share due to its asset dispositions in 2020. Preferred Stock of REITS (Real Estate Investment Trusts) Below is a complete listing of current preferred stocks of Real Estate Investment Trusts (REITs). The S&P U.S. The trust owns, operates and leases more than 40,000 cell towers and 80,000 route miles of fiber across every major US market, helping it support data infrastructure across the country. It has managed to grow per-share cash flow at double-digit rates annually for the past ten years, despite relatively weaker results for the past three years. About this page + View less A real estate investment trust (REIT) is a company that owns, operates or finances income-generating real estate across a range of industries. Track the movement of the 11 Sector SPDRs as well as the 500 component stocks. Preferred Stock and Trust Preferred Securities Summary Print Wells Fargo capital issuances include preferred stock, depositary shares (representing interests in shares of preferred stock) and trust preferred securities, some of which are listed on the New York Stock Exchange, as well as private transactions. In the 2019 fourth quarter, net income per unit was $0.39 per share while FFO per unit was $0.85, a sizable difference between the two metrics. Essex has ownership interests in 245 apartment communities consisting of over 60,000 apartment homes. Like preferred stock of all REITs mortgage reits pay dividends that are NOT qualified for preferential tax treatment. Now that you have the tools to identify high-quality REITs, the next section will show some of the benefits of owning this asset class in a diversified investment portfolio. It outperformed the MSCI USA Investable Market Index (IMI), its parent index that tracks the large, mid and small cap segments of the USA market, by approximately 60 basis points per year in the same period. Iron Mountain benefits from a high-quality business model, which continues to see steady demand. Bluerock Residential Growth REIT Inc., a Real Estate Investment Trust (REIT) whose common stock is listed on the New York Stock Exchange (NYSE American: BRG), is offering its Series T Redeemable Preferred Stock with the following features and benefits: From this page, you can start your research on Preferred Stocks. It has managed to grow per-share cash flow at double-digit rates annually for the past ten years, despite relatively weaker results for the past three years. REIT Stocks. REITs are, by design, a fantastic asset class for investors looking to generate income. As a retail REIT, Federal Realty has been negatively impacted by the coronavirus crisis. Legacy INXN shareholders now own ~20% of the new Digital Realty. Dividends are cumulative in all cases. In exchange for listing as a REIT, these trusts must pay out at least 90% of their net income as dividend payments to their unitholders (REITs trade as units, not shares). The REIT operates more than 1,200 single tenant properties on a net lease basis, across the US and Northern and Western Europe. More than the vast majority of other business types, they are primarily involved in the ownership of long-lived assets. Growth is fueled by investments in new properties. These figures somewhat decreased in the first 20 days of October, as SLG collected 90.3% of total billings. The following downloadable REIT list contains a comprehensive list of U.S. Real Estate Investment Trusts, along with metrics that matter including: You can download your free REIT list (along with the above mentioned financial metrics) by clicking on the link below: Click here to download your Complete REIT Excel Spreadsheet List now. To give a better sense of financial performance and dividend safety, REITs eventually developed the financial metric funds from operations, or FFO. Digital Realty has been very strategic in its acquisitions. REITs are unique because they are organized as pass-thru entities - they must distribute their income to stockholders to … SLG has been significantly affected by the coronavirus crisis, which has caused a recession and thus has hurt several tenants. Real estate investment trusts (REITs) are big issuers of Preferred Stocks and we list them below. Federal Realty generated FFO of $1.12 per diluted share. W.P. Digital Realty’s properties are a combination of data centers that store and process information, technology manufacturing sites, and Internet gateway data centers which allow major metro areas to transmit data. Revenue excluding one-time items was roughly flat with the year-ago period, while the company generated growth in adjusted FFO. Also like PFXF, that twist is evident in the name. Cherry Hill Mortgage (NYSE:CHMI) is a residential mortgage REIT… Crown Castle has a positive long-term growth outlook, which sets it apart from many other REITs which are struggling right now. W. P. Carey also reinstated its guidance for 2020, now forecasting FFO-per-share in a range of $4.65 to $4.75. It also has no material upcoming lease expirations or lease renewal risk and enjoys strong geographic and operator diversification (71 operators across 40 states plus the United Kingdom). Crown Castle does not have the highest dividend yield among REITs, but it makes up for this with a high level of dividend safety as well as growth potential. Preferred REIT Stock Index is designed to measure the performance of the REIT sector of the U.S. preferred stock market. Carey is a commercial real estate focused REIT that operates two segments: real estate ownership and investment management. Crown Castle’s cash flow per share –defined as the sum of earnings plus depreciation, minus preferred dividends –has shown robust levels of growth over the past decade. Carey will navigate the coronavirus crisis. During the quarter the company generated $432 million in core funds from operations or $1.54 per share. However, investors are hoping the bottom is in. As a result, adjusted FFO is expected to increase by $300 million to $345 million for 2021. The company’s three main selling points are its financial, portfolio, and management strength. Bonus: Listen to our interview with Brad Thomas on The Sure Investing Podcast about intelligent REIT investing in the below video. Digital Realty also updated its2020 outlook. It’s … This compares to FFO of $1.43 per diluted share in the third quarter 2019, which included the $11.9 million charge related to the buyout of the Kmart lease at Assembly. The investment seeks investment results that correspond, before fees and expenses, to the price and yield performance of the Indxx REIT Preferred Stock Index (the "underlying index"). The table of contents below allows for easy navigation. How To Use The REIT List To Find Dividend Stock Ideas. We examine the 3 best REIT ETFs below. The stocks are listed in order of attractiveness based on a combination of qualitative and quantitative factors, such as future growth potential, dividend yield, and dividend safety. 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