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Highlights
- Equity REITs have been considerably resilient amid rising inflation in the predominant economic scenario.
- These property-owning firms generally get a lot of tax benefits and pay out a majority of their profits as dividends.
Inflation has been a major concern for investors in the predominant economic scenario as it grinds down the value of one’s hard-earned money. The pessimism among investors has recently been rising amid the inflationary trend. As the monetary policy is tightened up and interest rates are raised by the Bank of England to counter the impact of inflation, the stock market is bound to get affected.
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However, some stocks are more impacted by such economic trends than others. One example of resilient inflation-proof stocks is equity Real Estate Investment Trusts (REITs). These property-owning firms generally get a lot of tax benefits and pay out a majority of their profits as dividends, making them a great source of passive income.
Here are the top 5 UK REITs that have given the best returns in the last one year and are a good buy for 2022.
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Safestore Holdings Plc (LON: SAFE)
Safestore Holdings Plc holds a position among the biggest self-storage group across the UK. The market cap of the FTSE250-listed company stood at £2,968.40 million and it has given a return of 71.14% to its shareholders in the last one year as of 6 January 2022. The company is offering a dividend yield of 1.1% a year. Safestore Holdings PLC’s shares were trading at GBX 1,383.00, down by 1.78%, at 8:34 AM (GMT) on 6 January 2022.
Which are the best REITs to invest in 2022 ?
Big Yellow Group plc (LON: BYG)
Big Yellow Group plc is the UK’s largest self-storage firm with the greatest brand recognition in the sector. The market cap of the FTSE250-listed company stood at £3,171.59 million and it has given a return of 51.87% to its shareholders in the last one year as of 6 January 2022. The company is offering a dividend yield of 1.7% a year. Big Yellow Group plc’s shares were trading at GBX 1,696.00, down by 1.62%, at 9:58 AM (GMT) on 6 January 2022.
AEW UK REIT PLC (LON: AEWU)
AEW UK REIT PLC owns several commercial properties in the UK and mainly focuses on industrial units. The market cap of the company stood at £182.19 million, and it has given a return of 46.16% to its shareholders in the last one year as of 6 January 2022. The company is offering a dividend yield of 4.5% a year. AEW UK REIT PLC’s shares were trading at GBX 114.80, down by 0.17%, at 10:04 AM (GMT) on 6 January 2022.
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RELATED READ: 2 real estate stocks to buy amid a continued surge in housing market
Warehouse REIT PLC (LON: WHR)
Warehouse REIT PLC is a UK-based closed-ended investment firm having a diversified portfolio of UK warehouse assets. It’s a constituent of the FTSE AIM UK 50 Index. The market cap of the company stood at £718.02 million, and it has given a return of 43.40% to its shareholders in the last one year as of 6 January 2022. The company is offering a dividend yield of 2.9% a year. Warehouse REIT PLC’s shares were trading at GBX 171.20, down by 1.27%, at 10:11 AM (GMT) on 6 January 2022.
Hammerson PLC (LON: HMSO)
Hammerson plc is a leading UK-based property development and investment firm. The market cap of the FTSE250-listed company stood at £1,548.97 million and it has given a return of 49.4% to its shareholders in the last one year as of 6 January 2022. The company is offering a dividend yield of 0.9% a year. Hammerson plc’s shares were trading at GBX 34.99, down by 0.34%, at 10:15 AM (GMT) on 6 January 2022.
Tags: Real Estate Investment Trusts (REITs), inflation, dividend, Safestore Holdings Plc, Big Yellow Group plc, AEW UK REIT PLC, Warehouse REIT PLC, Hammerson plc
