Top 7 REITs with over 50% YTD returns to explore

Highlights

  • Simon Property Group, Inc. (NYSE: SPG) had a dividend yield of 4.14%. The company owns and has an interest in 202 properties in the United States. Its stock increased 70.27% YTD.
  • EPR Properties (NYSE: EPR) leases experiential properties such as theaters, ski resorts and early childhood education centers. Its dividend yield is 5.75%.
  • Chimera Investment Corporation (NYSE: CIM) invests in a portfolio of mortgage assets and has a dividend yield of 8.43%.

Real estate investment trusts (REITs) are a steady source of income for the investor. The REIT companies pay a significant portion, around 90%, of their taxable income to the shareholders in the form of dividends. Therefore, these financial instruments could be a viable option in the low-interest rate scenario as the fixed income generating instruments give low-interest pay-offs, and other stocks can be a risky bet. 

REITs could be a safer option considering the constant dividend income they provide and slow yet steady growth in the per-share value over the long run.

Here we discuss seven REITs with more than 2.9% dividend yields and over 50% year-to-date growth in stock prices.

Simon Property Group, Inc. (NYSE: SPG)

Dividend Yield: 4.14%

Annualized Dividend: US$6.00

Simon Property Group is one of the largest REITs in the U.S. Indianapolis, Indiana-based Simon Property’s portfolio includes traditional malls, premium outlets, mills, lifestyles centers and retail properties. It owned and held an interest in 202 properties in the United States, consisting of 69 Premium Outlets, 95 malls, six lifestyle centers, 14 Mills, and 18 other retail properties as of June 30.

For the quarter ended June 30, its revenue was US$1.25 billion compared to US$1.06 billion in the June quarter of the previous year. The net income to common shareholders was US$617.3 million or US$1.88 per share diluted compared to US$254 million or US$0.83 per share diluted in the corresponding quarter of 2020. 

The company has a market capitalization of US$47.3 billion and a P/E ratio of 31.43. 

The stock closed at US$143.96. It increased by 70.27% YTD.

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(Simon Property Group, Inc. Common Stock (NYSE: SPG), Kimco Realty Corporation Common Stock (NYSE: KIM), Iron Mountain Incorporated (Delaware)Common Stock REIT (NYSE: IRM), Regency Centers Corporation Common Stock (REG), Macerich Company (The) Common Stock (NYSE: MAC) 

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Kimco Realty Corporation (NYSE: KIM)

Dividend Yield: 2.9%

Annualized Dividend: US$0.68

For more than 60 years, the self-administered REIT company has owned and operated open-air shopping centers. At the end of the June quarter in 2021, Kimco had interests in 398 U.S. shopping center properties in 27 states. Its objective is to own and operate open-air, grocery-anchored shopping centers and mixed-use assets.

The company posted revenue of US$289 million, and net income to the common shareholders was US$110.3 million or US$0.25 per share diluted for the June quarter in 2021. The revenue and net income were US$239 million and US$741 million or US$1.71 per share diluted, respectively, for the June quarter a year ago.  

The Jericho, New York-based company has a US$14 billion market capitalization with a P/E ratio of 25.4.

The KIM stock closed at US$22.86 and increased 54.16% YTD.

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Iron Mountain Incorporated (NYSE: IRM)

Dividend Yield: 5.43%

Annualized dividend: US$2.474

Located in Boston, Massachusetts, Iron Mountain is a REIT and engaged in providing management services. 

The net income for the quarter ended June 30, 2021, was US$275 million of revenue of US$1.12 billion. The revenue is a mix of storage rental and value-added services. The company incurred a net loss of US$7.09 million on the revenue of US$982 million in the June quarter of 2020. The EPS diluted was US$0.95 this year in the June quarter against loss per share diluted of US$0.02 for the same period in the previous year. 

The company has a market capitalization of US$13 billion. Its P/E ratio is 21.79, and forward P/E ratio for one year is 16.58.

The stock closed at US$45.75 on October 21. It rose 56.82% YTD.

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Regency Centers Corporation (NASDAQ: REG)

Dividend Yield: 3.34%

Annualized dividend: US$2.38

The Jacksonville, Florida-headquartered company is a shopping center-focused retail REIT. It has nearly 403 properties in its portfolio, primarily grocery stores. 

It reported net income attributable to common shareholders of US$95.5 million for the June quarter of 2021 compared to US$19 million in the previous year’s June quarter. The revenue was US$287 million compared to US$231 million in the June quarter last year. The EPS diluted increased to US$0.56 against EPS diluted of US$0.11 in the same period a year ago.

Regency’s market capitalization is US$11.89 billion and P/E ratio 52.64. The stock closed at US$70.01 on October 21. Its YTD return is 54.44%.

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Macerich Company (NYSE: MAC) 

Dividend Yield: 3.21%

Annualized dividend: US$0.60

The REIT company is located in Santa Monica, California. The company owns premium mall assets and has 29 malls in its consolidated portfolio.

For three months ended June 30, 2021, the company earned revenue of US$215.5 million with a net loss of US$11.77 million. The revenue was US$178.6 million, and the net loss was US$25.12 million for the corresponding quarter of 2020. The net loss per share diluted decreased to US$0.06 from US$0.18 in the previous year’s June quarter.

Its market capitalization is US$3.87 billion, and forward P/E ratio for one year is 9.42. The stock closed 2.8% down on October 21 at US$18.19. The stock grew 72.68% YTD.

Also read: Five hot small-cap stocks that gave over 390% return YTD

(REITs, EPR Properties Common Stock (NYSE: EPR), Chimera Investment Corporation Common Stock (NYSE: CIM)

Source – pixabay

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EPR Properties (NYSE: EPR)

Dividend Yield: 5.75%

Annualized dividend: US$3.00

This REIT leases experiential properties such as theaters, ski resorts, family centers, early childhood education centers, and private school properties in the U.S. and Canada. It had properties located in 44 states and Ontario, Canada, as of June 30.

The Kansas, Missouri-based company posted revenue of US$125 million and net income of US$18.55 million for the June quarter of 2021. The revenue was US$106 million, and the net loss was US$62.97 for the June quarter in 2020. The EPS diluted was US$0.17 compared to the loss per share diluted of US$0.90 for the June quarter of the previous year.  

Its market capitalization is US$3.85 billion. The stock closed at US$51.48 on October 21. It rose 59.35% YTD.

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Chimera Investment Corporation (NYSE: CIM)

Dividend Yield: 8.43%

Annualized dividend: US$1.32

The New York-based Chimera Investment is a REIT that invests in a portfolio of mortgage assets, including residential mortgage loans and other real estate-related assets on a leveraged basis. 

Its primary source of revenue is interest income. For the June ended quarter of 2021, the company earned a net interest income of US$172 million compared to US$117 million for the same period a year ago. 

The net income attributable to common shareholders was US$144.8 million for the June quarter this year compared to a net loss of US$73.39 million to common shareholders for the comparable period the in previous year. The EPS diluted improved to US$0.60 from a net loss per share diluted of US$0.37 in the June quarter of 2020. 

The company has a market capitalization of US$3.67 billion, a P/E ratio of 5.27 and a forward P/E ratio for one year of 8.89. 

The stock closed at US$15.56 on October 21. Chimera had a 52.49% return YTD.

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Bottom line

The Real Estate Select Sector SPDR Fund (XLRE) is an ETF that gave a 30.33% return YTD. The S&P 500 gave around 21.12% return in the same duration. There are REITs focused on specific real estate sectors, and some have a mixed portfolio of diverse holdings. However, an investor must choose according to the requirement and after careful analyses.  

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