Most Valuable REIT stocks to consider in 2021
Real Estate sector has made an immense fortune for many & has been a well sought after sector to earn high income with limited risk.
With this keeping in mind, Real Estate Investment Trust or REITs came into existence in 1960 to enable even small retail investors to benefit from income producing real estate assets. REITs are a great investment instrument as an individual can own a piece of high net worth property with great potential without putting a huge burden on your financials.
We at Dividend Watch have done an in-depth analysis in this article to help you choose the most rewarding REIT that can provide you an exponentially increasing long term dividend income.
Are REITs worth it today ?
A one word answer is a big Yes !
In fact REITs offer a great growth potential today more than ever, however it is essential for you to choose the right one to ensure high dividend growth and less risk exposure.
With the flexibility of choosing among varied property options from office and apartment buildings to warehouses, hospitals, hotels as well as shopping centres, you can conveniently diversify your portfolio and get rewarded with high dividends.
Moreover as we have observed that numerous commercial estate companies owning office buildings have taken a huge hit due to COVID-19 pandemic and the resulting economy fall, many high value REITs are undervalued and offers a great opportunity to invest in.
High Growth Potential REITs
Funds from Operations or FFO remains a key metric to measure the earnings in comparison with Industry average.
Below we at Dividend Watch have compiled a list of high potential REITs with factors that make them a great buy for 2021.
1) Brandywine Realty Trust (NYSE:BDN)
Being one of the most valuable REITs on our list, Brandywine owns a huge portfolio of primarily suburban office properties which are single handedly managed, leased, acquired and developed by the Brandywine REIT.
Due to impact of pandemic, the 3 quarters ending in September 30 showed decrease in revenues by 6%, however amazingly the net Income increased from $17.2 million to whooping $286 million.
Also with Net Profit Margin Growth Rate of 42% and dividend yield of 6.66% illustrates it is undervalued and has highly strong future growth potential.
2) Choice Properties REIT (TO:CHP-UN)
Choice Properties, Canada's preeminent diversified real estate investment trust, is the owner, manager and developer of a high-quality portfolio comprising 725 properties totaling 66.1 million square feet of gross leasable area. Choice Properties owns a portfolio comprised of retail properties predominantly leased to necessity-based tenants; industrial, office and residential assets concentrated in attractive markets; and offers an impressive and substantial development pipeline.
Current dividend yield of Choice properties REIT is 5.72 %
3) Realty Income Corp (NYSE:O)
A company loved by real estate investors, Realty Income Corp has been exceeding shareholder expectations since it entered the market.
One of the few REITs which offers Monthly dividends, it can definitely open doors for retail investors to earn a regular monthly passive income. Historically, since its inception Realty Income Corp has paid over 600 consecutive monthly dividends which means it has been paying dividends from the past 50 years every single month.
With Dividend Yield of 4.6% as compared to the Industry average of 3.8% and payout ratio of astounding 232%, Realty Income Corp is a strong buy for exponential capital growth as well as consistent dividend returns.
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