The real estate sector is staging a significant comeback in 2021.
And this is excellent news for real estate investment trusts (REITs) – special tax-advantaged businesses that provide investors with exposure to real estate – which look particularly cheap right now following a pandemic-related decline in 2020. As such, it appears to be a reasonable time for income investors seeking out value REITs.
While REITs have emerged as one of the best-performing stock market sectors this year, not all REITs are alike. Some REIT sectors such as office and retail suffered through the loss of tenants and customers during the pandemic shutdown and are bouncing back as businesses reopen. Other REIT sectors such as industrial and data centers experienced minimal effects during the pandemic and benefited from trends that favor telecommuting and e-commerce.
This week we will discuss five value REITs flying under the radar of investors and priced at a discount. Each boasts improving FFO (or funds from operations) per share. This is a crucial REIT earnings metric that measures dividends and solid fundamentals.
- STORE Capital (STOR)
- Physicians Realty Trust (DOC)
- Iron Mountain (IRM)
- Bluerock Residential Growth REIT (BRG)
- Omega Healthcare Investors (OHI)
Are any of my Top 5 already on your Watchlist? Reply back and let me know.
Have an amazing weekend, and stay tuned for Monday morning for our in-depth breakdown of STORE Capital (STOR).