Investing

Raymond James Very Bullish on 5 Top High-Yielding, Inflation-Busting REITs

Alpine Income Property Trust

This high-yielding gem is perfect for conservative investors looking for dependable income. Alpine Income Property Trust (NASDAQ: PINE) is a newly organized real estate company that owns and operates a portfolio of high-quality single-tenant net lease commercial properties, all of which are leased on a long-term basis and located primarily in or near major metropolitan statistical areas.

The Alpine Income Property Trust portfolio consists of 113 properties located in 31 states, and the Raymond James team had this to say about the fast-growing company:

During the fourth quarter, the company acquired 26 retail properties for $102 million at a 6.2% initial cash cap rate (reflecting a much lower cap rate vs the 7.2% registered on activity through September 30). Included in 4Q acquisitions was a previously announced portfolio deal consisting of nine retail ground lease parcels located in Houston, TX that were acquired for $43.5M from a private seller (which was likely the driving force behind the lower cap rate registered in 4Q). The properties span 11 states, 10 unique operating sectors, and 32% of annualized base rent (ABR) is derived from investment grade tenants.

In 2021, acquisitions totaled $260 million at a 6.8% initial cash cap rate (37% investment-grade). As of December 31, the portfolio was 100% leased, with 9% of ABR coming from ground leases and 45% from investment-grade tenants.

Investors receive a 5.25% distribution. Raymond James has set a $23 target price, while the consensus target is $22.36. The share price was $19.60 Wednesday morning.

Four Corners Property Trust

This is a great idea for investors looking for income and an inflation hedge. Four Corners Property Trust Inc. (NYSE: FCPT) engages in the owning, acquisition and leasing of properties for use in the restaurant and food-service-related industries.

The company’s Real Estate Operations segment consists of rental revenues generated by leasing restaurant properties. The Restaurant Operations segment comprises the Kerrow Restaurant business.

The analysts noted this:

During the fourth quarter, Four Corners acquired 33 properties for $70 million (no cap rate disclosed thus far) which included the final properties acquired from the previously announced portfolio transactions with Washington Prime (which totaled 59 properties and over $100 million). For the full year 2021, the company acquired 122 properties totaling over $257 million.

Investors receive a 4.93% distribution. The $32 Raymond James price objective compares with a $32.80 consensus target. Shares were trading at $27.50 apiece.

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