MDV is a single-tenant net lease REIT focused on manufacturing real estate in economically essential industries like infrastructure, automotive, defense, and healthcare. I think both of these are happening, which I believe will gradually reduce reits that pay monthly O’s valuation premium, raise its cost of capital, and lessen the profitability of each incremental investment. My passive income streams are growing rapidly, and I also expect significant upside in the coming years as REITs recover.
Its portfolio consists of 71 net leased retail and office properties located in 49 markets in 22 states. It was formed as recently as August of 2019, has no employees, and is externally managed by Alpine Income Property Manager. The manager is owned by the publicly traded trust CTO Realty Growth (CTO), which also owns 22.3% of Alpine’s common stock. Four Corners — our 5th top-ranked REIT — was formed after a spin-off from Darden Restaurants (DRI), in November of 2015. It is a real estate investment trust (REIT), which primarily acquires and leases restaurant properties.
- CareTrust has 32 facilities representing roughly 10% of contracted rents that it plans to reposition or sell as part of a 2022 plan to optimize its portfolio.
- Following an intense round of buyouts by equity firms last year, Equinix and rival Digital Realty Trust (DLR) are the market’s only remaining pure play digital REITs.
- The net lease structure, which includes minimal organic rent growth, requires exponential growth in assets just to generate linear growth in AFFO per share.
It also maintains a best-in-class balance sheet with net debt to EBITDA in the mid-4x area and almost no debt maturing until 2028. There are some incremental costs to paying a monthly rather than quarterly dividend. And he’s absolutely right that investors shouldn’t buy a stock just because it pays a monthly dividend.
He particularly likes the economics of these business models, since the owner/operator simply owns the land under the homes, collects rent, and doesn’t need to invest much. In a market where liquidity is drying up fast, sign me up for safe dividends plus additional profits. The asset price “fuel” that our Federal Reserve has provided since March 2020 is disappearing. Fed Chairman Jay Powell is being forced by inflation numbers to reduce the massive cash the Fed has been providing the financial markets.
What’s more, the REIT boasts an improving balance sheet, with net debt that has recently declined to only 4.5 times EBITDA. NXRT’s preference for floating-rate versus fixed-rate debt has spooked investors already worried about rising interest rates. The real estate stock is down more than 37% for the year-to-date to trade at 18 times forward FFO. This is an unusually low valuation for this fast-growing Sunbelt REIT. The REIT has delivered six consecutive years of dividend hikees, including nearly 10% annual increases, on average, over five years. “Management has started to execute on the portfolio repositioning that was announced in February,” says Stifel analyst Stephen Manaker.
Monthly-Paying REIT #3:
“CMBS credit spreads are very wide, so the fund can own high-quality investment-grade bonds with very attractive yields, which creates a setup for a potential total return opportunity,” he says. Listed on stock exchanges, REITs provide an easy way to access (with full liquidity) commercial real estate that would otherwise be out of reach for individual investors. Realty Income focuses on commercial properties, and currently owns roughly 5,000 of them with tenants, such as CVS Health (CVS ) and 7-Eleven. The company launched back in 1969, and shortly thereafter purchased its first commercial property, a Taco Bell restaurant. Realty Income focuses on properties with strong long-term growth potential, and prefers low-cost financing options, such as debt or stock issues over mortgages.
What is the best monthly dividend REIT?
In addition to macroeconomic factors driving rental income gains, NXRT has redevelopment projects underway impacting approximately 4,900 apartment units. The return on investment from these projects, which include full interior upgrades and smart home technology, is expected to range from 20% to 63%. NexPoint Residential Trust (NXRT, $53.32) owns and acquires multifamily properties primarily in the Sunbelt states.
This process will play out slowly over the course of years before many diehard shareholders realize that O’s outperformance has turned into underperformance. Today, REITs are offering the best opportunities in a decade and I am pushing all my dividend income towards them. Finally, if ADC’s 5.5% yield isn’t enough, then I have one final REIT for you to consider. A tax-advantaged 4.5% is the equivalent of a ~6% yield that would be taxed.
Choice Properties REIT (OTCMRKTS: PPRQF)
As the chart below illustrates, the monthly paying example with reinvested dividends was valued at $4,251 more after 10 years than the annual paying example. The sooner you reinvest a dividend, the more time it has to generate compound growth. Arrived Homes allows retail investors to buy shares of individual rental properties for as little as $100. When the time is right, Arrived Homes sells the property so investors can cash in on the equity they’ve gained over time. Sign up for an account on Arrived Homes to browse available properties and add real estate to your portfolio today.
A rapidly aging population in the US and some other developed nations should support demand for quality assisted living and memory-care facilities. These facilities generally cater to older individuals who can afford to pay rent out-of-pocket for their rooms. On the other hand, as “real assets” (i.e., tangible physical assets), property can provide more inflation protection than many investments. “And properties with shorter leases, like hotels and apartments, are able to reprice more quickly,” raising rents to stay ahead of inflation.
Focusing on experiential real estate, EPR Properties is another monthly dividend REIT. This group of properties includes everything from waterparks to movie theaters. The company aims to find businesses that meet its five-star criteria that have a market-dominant position to deliver the best return on investment.
Compare the business ethics, investment strategies and dividend yields of available REITs to find the right real estate company for your investment. Types of investments – ACM invests in affordable housing and mortgage loans, but also maintains some commercial real estate in sectors like education, healthcare and affordable grocery stores. Not all US REITs pay monthly, most pay quarterly; however, regardless of frequency, the one metric that provides me with the most intelligence is consistency. I bought LANDO at a lower price and an ~8% yield, and now I’m eyeing the higher-yielding 6% Series C (LANDP) to buy as well. Both pay preferred dividends monthly, but LANDP has almost 5x as many shares and therefore more liquidity than LANDO.
Don’t miss real-time alerts on your stocks – join Benzinga Pro for free! Try the tool that will help you invest smarter, faster, and better. Or browse current investment options based on your criteria with Benzinga’s https://1investing.in/ Offering Screener. Moreover, the REIT has very strong governance and a highly motivated management team led by CEO Aaron Halfacre. Insiders have made numerous open-market purchases of MDV stock since its IPO.
