In this article, we discuss 5 best REIT stocks to buy right now. If you want to read our detailed analysis of REITs’ returns over the years and their recent performance, go directly to read 11 Best REIT Stocks to Buy Right Now.
5. CubeSmart (NYSE:CUBE)
Dividend Yield as of October 24: 4.50%
CubeSmart (NYSE:CUBE) is an American self-storage company that specializes in the acquisition and development of self-storage facilities in the US. The company is grabbing investors’ attention as there is a strong demand for self-storage units, which have reported higher rents.
CubeSmart (NYSE:CUBE) is one of the best dividend stocks on our list as it has been raising its dividends consistently for the past 12 years. The company pays a quarterly dividend of $0.43 per share with a dividend yield of 4.50%, as of October 24.
In October, UBS initiated its coverage of CubeSmart (NYSE:CUBE) with a Buy rating and a $45 price target. The firm mentioned that REITs are growing because of population migration after the pandemic.
As of the close of Q2 2022, 18 hedge funds tracked by Insider Monkey reported owning stakes in CubeSmart (NYSE:CUBE), compared with 29 in the previous quarter. The collective value of these stakes is roughly $245 million. Among these hedge funds, Diamond Hill Capital owned the largest position in the company in Q2.
4. Crown Castle Inc. (NYSE:CCI)
Dividend Yield as of October 24: 5.07%
Crown Castle Inc. (NYSE:CCI) is a telecommunications-centric real estate investment trust company. The company reported that it has been fulfilling its dividend growth rate target for the past two years. On October 20, it announced a 7% hike in its quarterly dividend to $1.565 per share. This was the company’s eighth consecutive year of dividend growth, coming through as one of the best dividend stocks. As of October 24, the stock has a dividend yield of 5.07%.
In the second quarter of 2022, Crown Castle Inc. (NYSE:CCI) remained committed to shareholder returns. The company paid $637 million in dividends to shareholders, which showed an 11% growth from the same period last year. The company’s operating cash flow for the quarter came in at $780 million, compared with $622 million in the prior-year period.
In October, KeyBanc highlighted strong leasing trends in the US, which would be beneficial for the REITs. Given this, the firm maintained an Overweight rating on the stock with a $177 price target.
At the end of the June quarter, 48 hedge funds tracked by Insider Monkey owned stakes in Crown Castle Inc. (NYSE:CCI), compared with 50 in the previous quarter. These stakes have a combined value of over $1.42 billion.
ClearBridge Investment mentioned Crown Castle Inc. (NYSE:CCI) in its Q1 2022 investor letter. Here is what the firm has to say:
“U.S. communications company Crown Castle International (NYSE:CCI) was the largest detractor from quarterly performance. Crown Castle is the leading independent owner and operator of wireless communications infrastructure in the U.S. with a portfolio of approximately 40,000 towers. The stock underperformed as, driven by rising interest rates, investors rotated away from defensive into more value-oriented sectors. Communications infrastructure remains attractive, however, as companies continue to deploy greater capital spend to support the strong tailwinds from 5G.”
3. Realty Income Corporation (NYSE:O)
Dividend Yield as of October 24: 5.16%
Realty Income Corporation (NYSE:O) is one of the best dividend stocks on our list because of the company’s monthly dividend policy. The company has been raising its dividends for the past 28 years. Currently, it pays a monthly dividend of $0.248 per share for a dividend yield of 5.16%, as of October 24.
In Q2 2022, Realty Income Corporation (NYSE:O) paid $445 million in dividends to shareholders, which were smoothly covered with its free cash flow of $743 million. These dividends accounted for 76.5% of the company’s AFFO.
Raymond James maintained its Outperform rating on Realty Income Corporation (NYSE:O) in October with a $68 price target, as the firm observes the company as a strong risk/reward play within the net lease amid the uncertain market situation.
As of the close of Q2 2022, 19 hedge funds tracked by Insider Monkey owned stakes in Realty Income Corporation (NYSE:O), down from 22 in the previous quarter. These stakes are collectively valued at over $200.7 million. Citadel Investment Group was the company’s leading stakeholder in Q2.
2. VICI Properties Inc. (NYSE:VICI)
Dividend Yield as of October 24: 5.19%
VICI Properties Inc. (NYSE:VICI) is New York-based REIT that specializes in casino properties. Recently, the company came into an agreement with Canyon Ranch to develop its wellness resort worth over $200 million. The project will be completed by 2025.
VICI Properties Inc. (NYSE:VICI) has been raising its dividends consistently for the past four years. The company’s strong cash generation signals further dividend growth. It currently pays a quarterly dividend of $0.39 per share and has a dividend yield of 5.19%, as recorded on October 24.
In August, JMP Properties initiated its coverage on the stock with an Outperform rating and a $38 price target. The firm acknowledged the company’s enhanced investment activity and credit profile of its portfolio.
At the end of the June quarter, 26 hedge funds tracked by Insider Monkey owned stakes in VICI Properties Inc. (NYSE:VICI), compared with 36 in the previous quarter. The combined value of these stakes is nearly $288 million.
Meridian Funds mentioned VICI Properties Inc. (NYSE:VICI) in its Q2 2022 investor letter. Here is what the firm has to say:
“VICI Properties Inc. (NYSE:VICI) is a real estate investment trust company specializing in casinos and other entertainment properties. We invested in VICI in 2018 when earnings were declining due to dilutive acquisitions. Our thesis was that, as investors grew more comfortable with casinos as a REIT subsector, the value of their properties would increase. We also liked the defensive characteristics of the company, specifically the triple-net lease structure, which dictates that lessees pay all maintenance and capital expenditures, and the history of casino REITs with zero rent payments missed by casinos during either the global financial crisis or the 2020 pandemic. Furthermore, we were confident that VICI’s growth prospects would increase as more casinos monetized land holdings with VICI’s ability to use its extensive cash and liquidity to make acquisitions. VICI’s stock outperformed in the quarter due to its appeal as a fairly defensive investment and the news that it would be included in the S&P 500 Index. We maintained our position in VICI.”
1. Simon Property Group, Inc. (NYSE:SPG)
Dividend Yield as of October 24: 6.93%
Simon Property Group, Inc. (NYSE:SPG) is an American REIT that invests in shopping malls and community centers. On August 1, the company hiked its quarterly dividend by 6% to $1.75 per share. This marked the company’s fifth consecutive year of dividend growth. As of October 24, the stock has a dividend yield of 6.93%.
In October, Wolfe Research initiated its coverage of Simon Property Group, Inc. (NYSE:SPG) with a Peer Perform rating, appreciating the company’s consistent earnings growth over the years.
Simon Property Group, Inc. (NYSE:SPG) was a popular stock among elite funds in Q2 2022, according to Insider Monkey’s data. 45 hedge funds owned stakes in the company, up from 35 in the previous quarter. These stakes have a total value of roughly $820 million.
Baron Funds mentioned Simon Property Group, Inc. (NYSE:SPG) in its Q1 2022 investor letter. Here is what the firm has to say:
“Following a share price gain of more than 97% in 2021, we recently trimmed the Fund’s holdings in Simon Property Group, Inc. (NYSE:SPG), the largest and premier mall operator in the U.S. Though we are also tempered by the expectation for modest earnings growth in 2022, we remain optimistic about the company’s long-term prospects. Simon owns A-quality malls in A-quality geographic locations. We expect Simon to benefit from the ongoing economic recovery and believe management is well positioned to acquire real estate assets given its strong balance sheet and low cost of capital.”
You can also take a look at 11 Best Income Stocks to Buy Right Now and 10 Best REIT Dividend Stocks
