Real Estate Investment Trust (REIT) stocks are one of the best ways for investors to profit from real estate. REITs offer steady, relatively secure long-term returns through high dividends and better resilience to economic factors like inflation.
REITs can offer steady returns as many own diverse real estate portfolios without accumulating a large debt. Investors should keep their eye on these three REITs, as they have fair valuations and show excellent promise with their impressive portfolios in their respective real estate sectors.
We’ll detail each REIT’s specialty, portfolio details and the generous and secure dividend yield they offer investors this year.
Ventas (VTR)
Ventas Inc. (NYSE:VTR) has a firm hold and an expansive portfolio primarily comprised of healthcare facilities. With hospitals, medical offices, life science buildings and senior care, Ventas has a footing in every corner of healthcare real estate. Despite its top-shelf portfolio, Ventas still sits at quite a low valuation.
On top of a 4.18% yield, Ventas has made smart acquisitions to develop its portfolio and ensure further long-term dividend growth. For example 2015, Ventas acquired privately owned Ardent Medical Services, Inc. for $1.75 billion.
Then, in 2016, Ventas acquired Wexford Science & Technology’s life science and medical real estate assets for $1.5 billion. While these acquisitions were some years ago, the real estate Ventas owns from them is about to see a jump in value with rising demand for health care and life science solutions.
Ventas has an excellent portfolio and a history of steady returns and higher and higher dividends, making it a great REIT pick for investors.
LXP Industrial Trust (LXP)
LXP Industrial Trust (NYSE:LXP) has an extensive portfolio of warehouse real estate in major cities in the Midwest and Southwest regions. These traffic hubs like Chicago, Atlanta, Florida and Houston are also where companies base their largest distribution centers and are home to LXP’s largest customers.
To date, LXP’s most profitable tenet is Amazon, leasing 7.1% of LXP’s available 52 million square feet. Other significant tenants include big names like Nissan and Walmart. What makes LXP an even more attractive pick is its dividend yield.
LXP has consistently raised its dividend yearly for the past four years, currently at a 5.87% yield. An annualized dividend of $0.52 per share means this stock offers excellent growth and returns for dividend investors.
LXP has huge and reliable tenants that continue to expand and rent more warehouses, securing the REIT’s continued dividend growth and profit stream.
Mid-America Apartment Communities (MAA)
Mid-America Apartment Communities (NYSE:MAA) has one of the largest portfolios in the living spaces real estate category. As of Dec. 31, 2023, MAA owned 102,662 apartment homes and focused its investments on units that appeal to the large middle-class demographic.
In addition to constructing its own properties, Mid-America makes sizeable investments in renovating. With this strategy, Mid-America can continue to expand its portfolio with assets that meet the specific needs of its target demographic.
In the third quarter of last year, Mid-America redeveloped over 2,250 apartments and saw a 7% increase in renovated units rented compared to non-renovated units. This successful redevelopment initiative is funded well with Mid-America’s solid debt-to-equity ratio of .72.
With its low liabilities and a growing portfolio of assets, this REIT shows great promise for continued growth and highly secure returns.
On the date of publication, Joel Lim did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.