Top dividend-paying REITs to explore: WPC, EPR, CTO, LTC & SLG 

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Highlights 

  • P. Carey Inc. REIT (NYSE: WPC) has a dividend yield of 5.05% and an annualized dividend of US$4.228.
  • EPR Properties (NYSE: EPR) has a dividend yield of 6.14% and an annualized dividend of US$3.30.
  • CTO Realty Growth, Inc’s (NYSE: CTO) dividend yield is 6.65%, with an annualized dividend of US$4.32.

The US housing sales have been rising despite soaring mortgage rates. The spring season is the busiest time for home sales. Around 40% of the annual sales happen between March and June.  

The borrowing rates have gone up to 5%, the highest level since 2011. Low inventory has driven the US house prices higher. In 2021, home sales grew the highest since 2006.   

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Analysts expect the high mortgage rates may slow down house sales. But the demand won’t cool off drastically. Many people are still looking to buy real estate before the interest rates increase further. Experts said about 25% of the US homes were bought in cash in February.

Here, we discuss five real estate stocks with more than 5% dividend yield. 

W. P. Carey Inc. REIT (NYSE: WPC)

Closing price on April 19, 2022: US$85.23
Dividend Yield: 5.05%
Annualized dividend: US$4.228

New York-based W.P. Carey Inc is a real estate investment trust. It operates through two segments: Real Estate and Investment Management. W.P. Carey’s global real estate portfolio comprises single-tenant facility, retail, industrial facilities, and warehouses.  

The trust will announce its first-quarter financial results on April 29.

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It booked total revenue of US$1.33 billion for the fiscal year ended December 31, 2021, compared to US$1.21 billion in the previous fiscal. The real estate revenue was up US$1.31 billion from US$1.18 million a year ago. The net income attributable to W.P. Carey was US$410 million or US$2.24 per diluted share versus US$455 million or US$2.60 per diluted share in FY2020. 

The company has a market capitalization of US$16.32 billion. Its P/E ratio is 38.22, and its forward P/E for one year is 16.78. 

The stock traded in the range of US$85.40 to US$71.72 in the last 52 weeks.

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SL Green Realty Corp (NYSE: SLG)

Closing price on April 19, 2022: US$74.77
Dividend Yield: 5.07%
Annualized dividend: US$3.73

SL Green owns around 46 million square feet of wholly-owned and joint venture office space. The company also has properties in the retail space. It is based in New York.

The company will release its Q1, 2022 earnings on April 20 after market close. 

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In the fiscal year 2021, it generated revenue of US$844 million compared to US$1,053 million in fiscal 2020. Its net income rose to US$480.6 million or US$6.5 per share diluted from US$414.8 million or US$5.01 per share diluted in fiscal 2020.

The company has a market capitalization of US$4.84 billion. Its P/E ratio is 11.42, and its forward P/E for one year is 10.85. 

The SLG stock moved in the price range of US$88.27 to US$68.34 in the last 52 weeks. 

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EPR Properties (NYSE: EPR)

Closing price on April 19, 2022: US$55.02
Dividend Yield: 6.14%
Annualized dividend: US$3.30

EPR Properties is a real estate investment trust based in Kansas, Missouri. The company leases properties, such as theaters, ski resorts, entertainment centers, early childhood education centers, and private schools. 

Its first-quarter result will be out on May 5, 2022.

For the fiscal ended December 31, 2021, its net income was US$74.5 million or US$1.00 per diluted share on revenue of US$531.7 million. It incurred a net loss of US$155.9 million or US$2.05 per diluted share on revenue of US$414.7 million in fiscal 2020.  

EPR's market capitalization is US$4.12 billion. Its P/E ratio is 55.58, and its forward P/E for one year is 12.71. The stock traded in the range of US$56.29 to US$41.14 in one year.

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LTC Properties, Inc. (NYSE: LTC)

Closing price on April 19, 2022: US$36.16
Dividend Yield: 6.36%
Annualized dividend: US$2.28

LTC invests in housing and health care properties for senior citizens, mainly through mortgage financing, sale-leasebacks, joint-ventures, and structured finance.

The company booked revenue of US$155.3 million for fiscal 2021 compared to US$159.3 million for the fiscal year 2020. Its net income available to common shareholders was US$55.40 million or US$1.41 per diluted share compared to US$94.87 million or US$2.42 per diluted share for FY 2020.

The company has a market capitalization of US$1.45 billion. Its P/E ratio is 25.98, and its forward P/E for one year is 14.35. 

The stock moved in the range of US$43.88 to US$31.36 in the last 52 weeks. 

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CTO Realty Growth, Inc. (NYSE: CTO)

Closing price on April 19, 2022: US$64.97
Dividend Yield: 6.65%
Annualized dividend: US$4.32

Florida-based CTO Realty Growth Inc owns income properties covering around 2.7 million square feet in diversified markets in the US. Its real estate portfolio comprises Income Properties Portfolio, Commercial Loan Investments, and Subsurface Interests.

The company earned revenue of US$70.27 million compared to US$56.38 billion in fiscal 2020. Its net income came in at US$27.61 million or US$4.69 per diluted share compared to US$78.5 billion or US$16.69 per diluted share in FY2020.

The company has a market capitalization of US$388 million. Its P/E ratio is 13.85, and its forward P/E for one year is 14.19. 

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Bottom line:

REITs are considered the safest way to invest in real estate. But one should carefully analyze the companies and the broader market before stepping into stocks. 


 


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