{"id":281777,"date":"2018-11-28T20:18:01","date_gmt":"2018-11-28T20:18:01","guid":{"rendered":"https:\/\/financhill.com\/blog\/?p=281777"},"modified":"2020-06-07T13:31:04","modified_gmt":"2020-06-07T17:31:04","slug":"best-reit-stocks-to-buy-now","status":"publish","type":"post","link":"https:\/\/financhill.com\/blog\/investing\/best-reit-stocks-to-buy-now","title":{"rendered":"7 Best REIT Stocks to Buy Now"},"content":{"rendered":"<p>In an uncertain market, real estate is a strong play \u2013 and you don\u2019t need to be the deed holder to get in the game.<\/p>\n<p>When you are the property owner, shifting real estate values, problem tenants, property maintenance and more can erode your margins.<\/p>\n<p>Real estate investment trusts, or REITs, do not have this limitation. They hold vast stores of different property types, much of it commercial. High-rise office buildings, malls, and more are represented \u2013 but that\u2019s not the best part.<\/p>\n<h2>Why Buy REIT Stocks<\/h2>\n<p>REITs are required to distribute 90% of the net earnings they receive, so you also get dividends. Plus, the returns on REITs can be higher than bonds or even some stocks.<\/p>\n<p>According to\u00a0<a href=\"https:\/\/www.kiplinger.com\/article\/investing\/T044-C000-S002-5-great-reits-to-buy-now.html\" target=\"_blank\" rel=\"noopener\">Kiplinger<\/a>, \u201cThe average property REIT recently yielded 4.1%, well above the 2.4% yield of a 10-year Treasury bond and the 2% payout rate of Standard &amp; Poor\u2019s 500-stock index.\u201d That is a significant difference, especially if you are an income investor.<\/p>\n<p>But, that doesn\u2019t mean that all REITs are equally profitable.<\/p>\n<p>Right now, there are roughly\u00a0165 different REITs\u00a0with market caps over $250 million in which you can invest. Here are seven of our favorite real estate investment options and why.<\/p>\n<h2>American Tower (NYSE: AMT)<\/h2>\n<p><strong>American Tower (<a href=\"https:\/\/financhill.com\/search\/charts\/AMT\">NYSE: AMT<\/a>)<\/strong> is one of the biggest REITs in the world and one of the most successful.<\/p>\n<p>This company owns, develops, and oversees real estate for communications companies, specifically communications towers. Plus, most of its sites are multi-tenant, so they serve more than one company.<\/p>\n<p>Right now, <strong>American Tower (<a href=\"https:\/\/financhill.com\/search\/fundamentals\/AMT\">NYSE: AMT<\/a>)<\/strong>\u00a0offers a\u00a0dividend yield just under 2%. For the past five years, the company has grown at a rate of over 16%\u00a0per annum, and it doesn\u2019t look like it is slowing down.<\/p>\n<p>Consensus estimates put current quarter sales growth at 19.7% and current year sales growth at 10.4%.<\/p>\n<div class=\"financhill-widget\" data-symbol=\"amt\" data-width=\"600\" data-type=\"stock-score\" data-custom=\"null\"><\/div>\n<p><script src=\"https:\/\/financhill.com\/js-min\/widget.js\"><\/script><\/p>\n<h2>Crown Castle International (NYSE: CCI)<\/h2>\n<p><strong>Crown Castle (<a href=\"https:\/\/financhill.com\/search\/charts\/CCI\">NYSE: CCI<\/a>)<\/strong> is a lot like American Tower, in that it is also involved with communications towers.<\/p>\n<p>However, that is not this company\u2019s only business. While CCI owns and operates more than 40,000 towers, it is also involved in fiber with some\u00a065,000 route miles\u00a0of the communications technology currently installed as well as various\u00a0rooftop\u00a0antenna and wireless infrastructure systems.<\/p>\n<p>CCI offers a dividend north of\u00a04% at the time of our research. Over the past five years, the stock has grown at 19.67% per annum and\u00a0consensus estimates\u00a0look for that trend to continue.<\/p>\n<p>Forecasts put Crown Castle\u2019s growth at 32.7% this year and 20.90% next year. Plus, the company\u00a0beat on 3Q18 earnings\u00a0estimates and raised its outlook for the year, suggesting its growth could be even higher.<\/p>\n<div class=\"financhill-widget\" data-symbol=\"cci\" data-width=\"600\" data-type=\"stock-score\" data-custom=\"null\"><\/div>\n<p><script src=\"https:\/\/financhill.com\/js-min\/widget.js\"><\/script><\/p>\n<h2>Equinix (NASDAQ: EQIX)<\/h2>\n<p><strong>Equinix (<a href=\"https:\/\/financhill.com\/search\/charts\/EQIX\">NASDAQ: EQIX<\/a>)<\/strong> is in the\u00a0data center business. Specifically, the REIT owns the land the facilities are on, manages the power they use, and provides security for those systems.<\/p>\n<p>Equinix oversees these data center facilities and functions for more than 9,800 companies over\u00a0five continents.<\/p>\n<p>The REIT carries a\u00a02.4% dividend yield, but the company could see massive growth.\u00a0Consensus estimates\u00a0are predicting growth in the neighborhood of 46.3% this year and 42.1% next year.<\/p>\n<p>Analysts are more conservative going forward \u2013 they put the average per annum growth at 10.89% for the next five years, but there could still be room to get in before the swell.<\/p>\n<div class=\"financhill-widget\" data-symbol=\"eqix\" data-width=\"600\" data-type=\"stock-score\" data-custom=\"null\"><\/div>\n<p><script src=\"https:\/\/financhill.com\/js-min\/widget.js\"><\/script><\/p>\n<h2>Prologis (NYSE: PLD)<\/h2>\n<p><strong>Prologis (<a href=\"https:\/\/financhill.com\/search\/charts\/PLD\">NYSE: PLD<\/a>)<\/strong> is one of the leading owners of\u00a0warehouse distribution centers\u00a0in the world.<\/p>\n<p>The facilities this company owns are in popular coastal areas, like New York and Los Angeles, and they are vital to managing the logistics for retailers of all sizes, especially as many adopt buy online, pick up or return in-store options.<\/p>\n<p>Prologis also boasts a 97% occupancy rate.<\/p>\n<p>Prologis has a\u00a0dividend yield of 2.87%.\u00a0The REIT\u00a0beat on 3Q18 estimates, bringing in rental revenues of $609 million versus $531.2 million in the same quarter last year after adding one million square feet of rental space in the past year. Occupancy in its portfolio is strong at 97.5% overall.<\/p>\n<div class=\"financhill-widget\" data-symbol=\"pld\" data-width=\"600\" data-type=\"stock-score\" data-custom=\"null\"><\/div>\n<p><script src=\"https:\/\/financhill.com\/js-min\/widget.js\"><\/script><\/p>\n<h2>Public Storage (NYSE: PSA)<\/h2>\n<p><strong>Public Storage (<a href=\"https:\/\/financhill.com\/search\/charts\/PSA\">NYSE: PSA<\/a>)<\/strong> is the largest self-storage company in the United States. It has over 2,400 properties spread throughout America and Europe.<\/p>\n<p>The bulk of its business is in the US. Public Storage has 161 million square feet of rentable space stateside versus 12 million in Europe.<\/p>\n<p>The company also invests in the industry. Public Storage has a common equity interest in <strong>PS Business Parks (<a href=\"https:\/\/financhill.com\/search\/charts\/PSB\">NYSE: PSB<\/a>)<\/strong> and\u00a0its stake is significant at 42%.<\/p>\n<p>This company is trading with a\u00a0dividend yield of 3.85%, which makes it one of the higher dividend yields on this list.<\/p>\n<p>Consensus estimates are predicting 12.5% growth this year and an average\u00a017% annual growth\u00a0over the next five years.<\/p>\n<div class=\"financhill-widget\" data-symbol=\"psa\" data-width=\"600\" data-type=\"stock-score\" data-custom=\"null\"><\/div>\n<p><script src=\"https:\/\/financhill.com\/js-min\/widget.js\"><\/script><\/p>\n<h2>Simon Property Group (NYSE: SPG)<\/h2>\n<p>The <strong>Simon Property Group (<a href=\"https:\/\/financhill.com\/search\/charts\/SPG\">NYSE: SPG<\/a>)<\/strong> is known for its\u00a0shopping centers.<\/p>\n<p>The company owns and operates some of the most lucrative malls and outlet shopping in the United States. It also owns property in\u00a0Europe and Asia.<\/p>\n<p>Online shopping might be a significant trend or even a way of life for many shoppers but bargain hunters still travel to brick-and-mortar stores and there is no sign that this trend is changing for the Simon Property Group.<\/p>\n<p>Thanksgiving weekend 2019 saw a 2% increase over the same weekend in 2018. CEO\u00a0David Simon\u00a0noted that some luxury brands saw sales increases that were several times that of last year, posting numbers that were as much as 30% higher. Plus, many stores topped their own estimates.<\/p>\n<p>The company offers a\u00a0dividend yield of 4.32%.<\/p>\n<div class=\"financhill-widget\" data-symbol=\"spg\" data-width=\"600\" data-type=\"stock-score\" data-custom=\"null\"><\/div>\n<p><script src=\"https:\/\/financhill.com\/js-min\/widget.js\"><\/script><\/p>\n<h2>Weyerhaeuser (NYSE: WY)<\/h2>\n<p>Weyerhaeuser is a REIT that specializes in forest products. It owns\u00a012.4 million acres\u00a0of timberland and leases another\u00a07 million acres\u00a0of the same.<\/p>\n<p>The company uses that timber to manufacturer wood products like plywood and lumber for home construction.<\/p>\n<p>Weyerhaeuser develops its lands with an eye towards sustainability and has earned a spot on the World Dow Jones Sustainability Index for its efforts.<\/p>\n<p>Shares in the REIT are priced at $26.84 and the\u00a0<a href=\"https:\/\/finance.yahoo.com\/quote\/WY?p=WY\" target=\"_blank\" rel=\"noopener\">dividend yield is currently at 5.17%.<\/a><\/p>\n<div class=\"financhill-widget\" data-symbol=\"wy\" data-width=\"600\" data-type=\"stock-score\" data-custom=\"null\"><\/div>\n<p><script src=\"https:\/\/financhill.com\/js-min\/widget.js\"><\/script><\/p>\n","protected":false},"excerpt":{"rendered":"<p>In an uncertain market, real estate is a strong play \u2013 and you don\u2019t need to be the deed holder to get in the game. When you are the property owner, shifting real estate values, problem tenants, property maintenance and more can erode your margins. Real estate investment trusts, or REITs, do not have this [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":281783,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"content-type":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false},"version":2}},"categories":[22],"tags":[],"class_list":["post-281777","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-investing"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/financhill.com\/blog\/wp-content\/uploads\/2018\/11\/reit.jpg","jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p9czeV-1biN","_links":{"self":[{"href":"https:\/\/financhill.com\/blog\/wp-json\/wp\/v2\/posts\/281777","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/financhill.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/financhill.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/financhill.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/financhill.com\/blog\/wp-json\/wp\/v2\/comments?post=281777"}],"version-history":[{"count":2,"href":"https:\/\/financhill.com\/blog\/wp-json\/wp\/v2\/posts\/281777\/revisions"}],"predecessor-version":[{"id":392923,"href":"https:\/\/financhill.com\/blog\/wp-json\/wp\/v2\/posts\/281777\/revisions\/392923"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/financhill.com\/blog\/wp-json\/wp\/v2\/media\/281783"}],"wp:attachment":[{"href":"https:\/\/financhill.com\/blog\/wp-json\/wp\/v2\/media?parent=281777"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/financhill.com\/blog\/wp-json\/wp\/v2\/categories?post=281777"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/financhill.com\/blog\/wp-json\/wp\/v2\/tags?post=281777"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}