In this article, we discuss 5 best REIT ETFs to buy now. If you want to read our detailed analysis of the real estate industry and other exchange-traded funds in the list, go directly to read 10 Best REIT ETFs to Buy Now.
5. Invesco Active U.S. Real Estate Fund (NYSE:PSR)
Invesco Active U.S. Real Estate Fund (NYSE:PSR) invests in securities that are included in the FTSE Nareit All Equity REIT index at the time of purchase. The fund selects the attractively valued stocks by using quantitative and statistical methods while managing risks. The fund was founded in 2008 and has delivered a 361.3% return to shareholders since then.
As of June, Invesco Active U.S. Real Estate Fund (NYSE:PSR) holds 81 stocks in its portfolio with an expense ratio of 0.35%. On March 28, the fund declared a quarterly distribution of $0.6307 per share, with a yield of 2.58%, as of June 13. In May, Morningstar gave the fund 4 stars out of 146 funds for its 10-year performance.
Public Storage (NYSE:PSA) is one of the major holdings of Invesco Active U.S. Real Estate Fund (NYSE:PSR), representing 1.64% of its portfolio. The self-storage company provides storage units for the personal and business needs of its consumers. Appreciating the company’s strong balance sheet, BMO Capital upgraded Public Storage (NYSE:PSA) to Outperform in May, with a $370 price target. The firm highlighted the defensive nature of the storage sector, which is highly needed in the current unstable environment.
In Q1 2022, Public Storage (NYSE:PSA) posted an FFO of $3.65, which beat estimates by $0.06. The company’s revenue for the quarter also presented a 15.8% year-over-year growth at $749.2 million.
At the end of March 2022, 35 hedge funds in Insider Monkey’s database reported owning stakes in Public Storage (NYSE:PSA), up from 33 in the previous quarter. The collective value of these stakes is over $874.6 million. With a stake worth $260 million, AQR Capital held the largest position in the California-based company in Q1 2022.
Baron Funds mentioned Public Storage (NYSE:PSA) in its recently-published Q1 2022 investor letter. Here is what the firm has to say:
“Public Storage Incorporated is a REIT that is the world’s largest owner, operator, and developer of self-storage facilities. The company’s nearly 2,500 self-storage facilities across the U.S. serve more than one million customers. The company has achieved the number one market position in 14 of its top 15 markets and the leading brand among consumers. We are encouraged about the company’s prospects due to our expectations for the continuation of strong occupancy and rent trends, limited new supply, mid-teens organic cash flow growth, the potential for mergers and acquisitions activity in part due to the company’s well-capitalized and low leverage balance sheet, and the ability to increase rents monthly to combat inflation headwinds. We believe Public Storage’s shares are currently valued at a discount to private market self-storage values and offer prospects for mid-teens total returns over the next few years.”
