REITs with over 5.5% dividend yield to explore

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REITs with over 5.5% dividend yield to explore

 REITs with over 5.5% dividend yield to explore
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Highlights

  • Gaming and Leisure Properties, Inc. (NASDAQ: GLPI) has a P/E ratio of 17.4 and an annualized dividend of US$2.68.
  • Iron Mountain Incorporated REIT (NYSE: IRM) has a P/E ratio of 19.36 and an annualized dividend of US$2.474.
  • MGM Growth Properties LLC (NYSE: MGP) has a P/E ratio of 27.61 and an annualized dividend of US$2.10.

Real estate Investment Trusts (REITs) own, develop, and manage commercial, industrial, and residential properties.

These companies give retail investors exposure to real estate by allowing them to select a portfolio of properties that earn on lease or rent.

REITs typically pay up to 90% of their taxable earnings to investors as dividends. So, it could be a viable investment option for those looking for a supplementary source of income.

According to the latest industry data, preowned US homes sales declined by 4.6% to 6.18 million units last December on a seasonally adjusted annualized rate (SAAR).

Here we discuss five REITs with more than 5.5% dividend yield.

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 Gaming and Leisure Properties, Inc. (NASDAQ: GLPI)

 It is a Wyomissing, Pennsylvania-based real estate investment trust. It leases gaming and other related facilities to the wholly-owned subsidiaries of Penn National Gaming in the US. 

 It has a market capitalization of US$10.7 billion and a P/E ratio of 17.4. Its forward P/E ratio for one year is 12.75. Its dividend yield is 6.05%, and the annualized dividend is US$2.68.

 For the nine months ended September 30, 2021, the company earned revenue of US$918 million compared to US$853 million in the corresponding period of 2020.

 The revenue includes rental income, interest from real estate loans, gaming, food, beverage, etc. Its net income was US$414 million or US$1.77 per share diluted compared to US$336 million or US$1.55 per share diluted in the first nine months of 2020.

 The stock traded in the range of US$51.46 to US$39.81 in the last 52 weeks and closed at US$43.49 on January 20, 2022.

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Top 5 REITs with more than 5% dividend yield to keep an eye on. 

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 Iron Mountain Incorporated REIT (NYSE: IRM)

 Iron Mountain provides record management services and is based in Boston, Massachusetts. It earns revenue from storage business and other value-added services. Its business segments include Global Data Center Business, Global RIM Business, Corporate and Other Businesses.

 It has a market capitalization of US$12.33 billion and a P/E ratio of 19.36. Its forward P/E ratio for one year is 15.54, the dividend yield is 5.72%, and the annualized dividend is US$2.474.

 Its total revenue was US$3.33 billion for the nine months ended September 30, 2021, compared to US$3.09 billion in the same period of 2020. The net income was US$391 million or US$1.34 per share diluted compared to US$0.096 million or US$0.33 per share diluted a year ago. 

 The stock traded in the range of US$53.14 to US$29.75 in the last 52 weeks. It closed at US$42.59 on January 20, 2022.

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 MGM Growth Properties LLC (NYSE: MGP)

 MGP is based in Las Vegas, Nevada. It owns, acquires, and leases large casino and resort properties, which offer lodging, dining, gaming, entertainment, retail, and other amenities. 

MGM has a market capitalization of US$5.8 billion. Its P/E ratio is 27.61, the forward P/E ratio for one year is 14.62. The dividend yield is 5.57%, with an annualized dividend of US$2.10.

 The company reported revenue of US$583 million for the nine months ended September 30, 2021, compared to US$598 million in the same period a year ago.

 The net income was US$272 million or US$1.03 per share diluted in 2021 against US$0.069 million or US$0.27 per share diluted in the same period of 2020.  

 The stock price moved in the range of US$43.19 to US$29.93 in the last 52 weeks. It closed at US$37.28 on January 20, 2022.

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Spirit Realty Capital, Inc. (NYSE: SRC)

 The Dallas, Texas-based company leases properties in the US. The tenants sell the properties to Spirit Realty and then take the same property back on a long-term lease.   

 Almost all its revenue comes from the lease rental income. Its clients include quick-service restaurants, general merchandise companies, casual dining providers, etc. 

 Its market capitalization is US$5.84 billion. The P/E ratio is 36.27, and the forward P/E ratio for one year is 14.33. The dividend yield is 5.38%, and the annualized dividend is US$2.552.

 For the nine months ended September 30, 2021, its revenue was US$452 million versus US$355 million in the same period a year ago.

 Its net income came in at US$127.3 million or US$1.02 per share diluted compared to a net loss of US$2.46 million or US$0.11 per share diluted in the first nine months of 2020.

 The stock traded in the range of US$52.29 to US$38.01 in the last 52 weeks and closed at US$45.7 on January 20, 2022.

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Source – pixabay

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

 The New York-based W.P. Carey Inc owns properties in the US and Europe. Its two operating segments are Real Estate and Investment Management.

 The revenue in the real estate segment comes from leasing warehouses, industrial and retail facilities, and single-tenant offices globally. The investment management segment generates revenue from real estate advisory and portfolio management services to other REITs.

 It has a market capitalization of US$14.13 billion. Its P/E ratio is 30.83, the forward P/E ratio for one year is 15.64. The dividend yield is 5.44%, and the annualized dividend is US$4.22.

 The company reported revenue of US$957 million for the nine months ended September 30, 2021, compared to US$876 million in the corresponding period a year ago.

 The net income was US$310 million or US$1.71 per diluted share, versus US$331 million or US$1.84 per diluted share in the first nine months of 2020.

The stock moved in the price range of US$83.19 to US$65.75 in the last 52 weeks. It closed at US$75.84 on January 20, 2022.

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Bottomline

 The Real Estate Select Sector SPDR Fund generated 28% in one year. The return on REIT investment is generally slow but steady. Investors, however, should exercise due diligence before investing in the stock market.

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