Even during the financial crisis, real estate investment trust (REIT) funds were secure from losing. Now that the housing and mortgage industry is again growing and profitable, REITs have also shown to be very good investments. REITs offer a mutual fund like security in numbers, investing in real estate including buildings, offices, homes, apartments, condominiums, warehouses and others.
Even if you do not have money to buy prime property, putting money in REITs can have you investing in luxury homes for sale in Round Rock, TX, without knowing it. Here are 5 REITs which you should take a look at, for 2017:
- Lasalle Hotel Properties. A company noted for investing and managing hotels and resorts, Lasalle Hotel Properties is expected to deliver at least 7.77% dividend. Analysts forecast that this is the low-end estimate, with a headroom of 4.79%. This means that the company can give dividends as high as 12.5%.
- CorEnergy Infrastructure Trust. CorEnergy provides infrastructure assets for the energy industry. These include pipelines, warehouses, logistics, transmission lines, and storage tanks. During the past year, the share price grew by 91%. It is expected to have a dividend yield of 10.3% based on a forward price-to-earnings (P/E) of 20.
- Digital Realty Trust (DLR). The core business of DLR is in data centers. It rents out space for data centers across the country. If there is a big company with a lot of servers, they are most probably renting space in a DLR warehouse. Although the stock currently pays out 4.3%, the dividend has been increasing since their IPO in 2004. The growth of cloud computing means that there is no ceiling for growth of DLR.
- Crown Castle International (CCI). CCI is a company which supplies to the telecom industry. They lease out antennas, and cell towers to communications carriers. The growth in cell phones, specially in data transmissions, ensures that their business model will also continue to grow. The stock yield is currently at 4.1%.
- Host Hotels (HST). Another REIT which specializes in hotels and resorts, HST have a yield of 5.2%. It owns 92 high class hotels and resorts. The company owns the hotel, and these are managed by third-parties.
- Realty Income. Realty is a solid company built on cash flow. Yielding 3.5% may not sound like a lot, however, it has more than 4,615 buildings. It boasts an impressive 98% occupancy rate, and a steady growth in leases and in acquisitions. On top of that, it pays out dividends monthly, and has done so for 550 consecutive months.
The above are some of the choices available for REIT investment. Some of these are solid long-term investments which can lead to a continuous cash flow. If you want to go for the long game, you can follow those with a long history of giving out dividends. Or you can choose REITs which have diversified property holdings. Industry-based REITs are easier to forecast, like those in energy, telecommunications and in IT. The above may not appeal to the regular investor, but they do provide a good sample of viable investments providing predictably good yields.