What are the Best REITs for Income?
Let’s take a step back and define what REITs are.
What are REITs?
REITs are known as Real Estate Investment Trusts. They own, operate, and finance income-generating real estate assets. Unlike real estate properties, this is an investment type that allows people to invest into real estate without directly owning or managing properties on their own.
This post is about the Best REITs for Income.
Let’s dive into the 5 Best REITs for Income.
1. Simon Property Group (SPG)
Perhaps the most well known REIT is the Simon Property Group, otherwise known as SPG. Its specialty is in owning, developing, and managing a portfolio focusing on shopping malls, premium outlets, and other retail properties.
With their focus into the retail space, SPG focuses on locations with high foot traffic.
2. Prologis (PLD)
On the other hand, Prologis mainly specializes in the background of retail businesses: logistics and industrial properties. These properties include distribution centers, warehouses, e-commerce fulfillment centers, and other logistics-related facilities. This sector has grown significantly as the demand for both e-commerce and same-day delivery.
3. Realty Income Corp (O)
Realty Income Corp specializes in commercial properties, specifically single-tenant properties. Similar to SPG, Realty Income Corp also focuses in retail. The retail spaces include convenience stores, pharmacies, movie theaters, dollar stores, etc. Some examples of these spaces include Walgreens, 7-Eleven, FedEx, and others. What makes this REIT different is that Realty Income operates under a net lease business model. This means that the tenants are responsible in covering most of the property-related expenses. These expenses include property taxes, insurance, and maintenance.
4. Public Storage (PSA)
As its name suggests, Public Storage specializes in the self-storage industry. The self-storage industry offers storage units in various sizes, and lets customers store their personal belongings. The strategy behind Public Storage locations focuses on densely populated areas, especially near residential neighborhoods with major transportation routes. The reasoning behind this is because the factors driving the growth of this business includes residential moves and decluttering efforts.
5. American Tower (AMT)
The American Tower Corporation specializes in owning, operating, and leasing communication towers, and related infrastructure. These properties include towers for infrastructure support, mobile networks, TV/radio broadcasting, and more. The infrastructures include towers that have antennas installed and other equipment that help maintain and strengthen the wireless network coverage and capacity.
To reiterate, the top 5 best REITs for Income are:
- Simon Property Group (SPG)
- Prologis (PLD)
- Realty Income Corp (O)
- Public Storage (PSA)
- American Tower (AMT)
There you have it! Interested in learning more about investing? Check this post out for different types of investments!
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