7 Solid REITs Outyielding the 10-Year Treasury Plus Strong Implied Upside Ahead
Camden: Apartment REIT
Camden Property Trust (NYSE: CPT) is a top Houston-based apartment and multifamily living REIT operator with 159 communities owned and operated covering some 54,000 apartments across the United States. It has a market value of $10 billion, which puts it among the larger apartment REITs.
Camden trades near $101.70, and it has a dividend yield of 3.15% and a 52-week trading range of $82.60 to $102.45. Its consensus price target is $105.40.
Digital Realty: The REIT of the Cloud
Digital Realty Trust Inc. (NYSE: DLR) is effectively the REIT of the cloud, supporting data centers and other connectivity and digital storage services for more than 2,300 clients throughout North America and internationally. Its market cap has reached over $26 billion,
Digital Realty shares recently traded at $121.50. The dividend yield is 3.5%, the consensus target price is $124.81 and the 52-week trading range is $100.05 to $125.10.
Federal Realty: Retail and Mixed-Use REIT
Federal Realty Investment Trust (NYSE: FRT) is a $10 billion or so REIT targeting high-quality retail and mixed-use properties located primarily in major metro markets. One thing that should stand out here is that it is the only REIT in the S&P Dividend Aristocrats Index, in which companies have raised their dividends for 25 consecutive years or more.
Federal Realty has a share price of $137.50 and a 2.95% dividend yield. Its 52-week range is $110.66 to $139.29, and the consensus target price is $141.80.
Host Hotels & Resorts: Hotel REIT
Host Hotels & Resorts Inc. (NYSE: HST) is a hotel REIT. The company’s brand partners include Marriott, Ritz-Carlton, Westin, Sheraton, W Hotels, St. Regis, The Luxury Collection, Hyatt, Fairmont, Hilton and more, with properties in over 50 major markets. Many investors have feared Airbnb as a broad threat to the entire hotel and lodging sector, but the shares have come back strong.
With a share price of $19.15 and a dividend yield of 4.1%, Host has a 52-week trading range of $15.89 to $22.40 and a consensus target price of $21.03. The market cap is more than $14 billion.
Simon Property: Mall REIT
Simon Property Group Inc. (NYSE: SPG) is a top mall-based REIT, which also houses mixed-use, dining and entertainment properties. It had faced many ongoing woes from the likes of Amazon and sales going away from malls, but the current climate seems to have dictated that those who have survived to this point are likely to continue to do so. Now that it has learned to attract anchor tenants, potentially including Amazon and other entertainment-based renters, Simon Property has recovered handily from its lows.
At $182.30 a share, it has an $8.20 annualized yield of about 4.5%. The 52-week range is $145.78 to $191.49, and the consensus target price is $198.83.
Tanger Factory Outlet: Shopping/Outlet Centers
Tanger Factory Outlet Centers Inc. (NYSE: SKT) is an outlet center shopping mall operator with 40 locations in 20 states. This is the sole sub-$2 billion market cap on this list, and that is because its shares have pulled back in recent days to give it a $1.98 billion market cap. And note that Tanger recently sold four more non-core outlet center properties for roughly $131 million, and it has sold a total of 13 non-core properties for $402 million since the end of 2014. The properties represent 6.8% of Tanger’s consolidated square footage and approximately 5.1% of its forecast 2019 portfolio net operating income. Tanger became a public company in 1993, and it has paid a cash dividend each quarter and has increased its dividend each year.
Tanger’s $20.15 share price generates a dividend yield of 6.9%, and it comes in a 52-week range of $19.75 to $24.91. The consensus target price is $21.23.