What are some good REIT's to invest in? New to the REIT game
Curious what REITs you are invested in currently? What is some good criteria for selecting a good REITs. Looking for any recommendations
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I'm in Realty Income.
Criteria you want to look at is kind of dependent on what you're looking to accomplish with it but a lot of people like to buy reits for the monthly/ quarterly income. I mainly bought Realty Income because it has been incredibly consistent and the monthly dividends can be reinvested into more shares, even in partial amounts. The aim is to have it reinvest for the next like 30-40 years until the day that I need those dividends, and then use it as a source of monthly income.
Since I work in RE and plan to own a lot of property, I try to stay a bit more diversified and focus on like small-mid-large cap mutual funds.
that's helpful and exactly what i'm looking for. is that the only REIT you are in? i would think it is good to own at least a few REIT's in a few different areas (residential, commercial, senior housing).
I am not in real estate right now, but would like to diversify my portfolio beyond equities, bonds, fx
Yeah that's the only one I'm in outright. It's probably a good idea to own a few different ones, possibly something like Vanguards REIT fund, but since I work in Commercial Real Estate and own Residential, I don't want to put too many eggs into the RE basket. I'm in my mid 20s and don't have a ton of capital to place either.
A few I've looked at but not bought would be like Colony Starwood, Agree Realty, HTA, Empire State Realty Trust.
Although not a REIT, I did own a bit of Blackstone for a little while. They were pretty heavy on real estate back before the spin off of Invitation Homes. I think I pulled like 45% pre-tax on the appreciation/dividend/cap gain the year I owned BX.
Also if you're looking to invest in RE without actually owning RE, it'd probably be a good idea to pick up some shares of Banks, Brokerages and Homebuilders too. Some blue chips like JP Morgan, CBRE and Toll Brothers would probably be a good mix. Might be a little late in the cycle to pick these guys up though.
Hey, REITs are very interesting and there is one specific "sector" of REITs that I would recommend looking into. Senior housing and healthcare facilities along with assisted living. I currently own one of these (LTC), but here are a few names you could look at (there are many others too):
LTC Properties (LTC) -- Lots of good things about LTC, all leases triple net I believe, strong balance sheet, slow but solid growth, good deal pipeline, pays a monthly dividend. Buy on a correction I guess? New Senior Housing (SNR) -- This looks cheap as hell, but I'm not sure why, need to do more research. Ventas (VTR) Capital Care Parnters (CCP) Welltower (HCN) Omega Healthcare Investors (OHI)
There are a lot more REITs in this space that will be easy for you to find outside of this small sample. Look at FFO, AFFO, price to FFO and things like that to help with valuation besides other normal metrics, lots of REITs pay great dividends too.
Now, why senior living and healthcare? Something like 10,000 baby boomers are going to retire every single day over the next decade or so until 2029. I think this could be a mega-trend and who doesn't want a part of that money?
REIT Investing (Originally Posted: 03/28/2016)
Forgive my ignorance on the topic, but is there somewhere free one can pull data of all 222 or whatever REITs there are in the U.S. and their historical data (dividend yield, annualized returns, expense ratio, etc.)?
Bloomberg has this. Download a broad REIT mutual fund/ETF holdings. Use API formulas in excel for the information needed. Shouldn't take too long if you have an advanced data resource.
FinViz.com?
I would honestly just invest that cash in high yield actual real assets
Investing in REITs (Originally Posted: 08/23/2012)
Haven't seen too much discussion on here about REITs. Anyone invest?
If so, what do you look for when investing? What metrics do you look that, seeing that REITs are unique. I've been reading that many REITs are overvalued right now, but there are still opportunities out there.
Any thoughts?
Discount to NAV, development pipeline, sources of income (development + sale or management), key assets.
Investing all asset in REIT ETF as strategy (Originally Posted: 12/29/2014)
Let's say say I have $2mm. And thats ALL the money I had.
Could someone talk about the cons of putting every last penny of it in a REIT ETF (VNQ) and just collecting the income and retiring? Alternative income stream strategies?
I realize putting all of it, in one asset is risky, but I did a historical return analysis, and had I done this strategy before the crash in 08, the year with the lowest in annual income would have been in 2009, 2010, and 2011, which would have been about $50k, which would have still been enough to live off of at the time. (i've lived off of much less in the past!). Since Jan 1, 2013, annual income has been about 70k, and the two years before the crash, annual income was 80k a year.
As of 2015, the entire principle lost in the 08 crash has come back.
I am also assuming that:
Hope you are in for the long term. It can take a long time to unwind the REIT, be sure to read the contract carefully, especially the exit conditions.
I am a little worried about this strategy. What happens when interest rates rise?
why not buy yourself a nice interest rate swap? :)
Relying on past data for REITs is probably not a great idea. Lots of tailwinds over the past 25 years or so. Over that long stretch you are looking at the returns over the period in which public REITs became a legitimate and recognized asset class, and went from being very small players in real estate to a big chunk of the market. Rates have also declined significantly over the past 25 years, and over the 2008-present period you cited. I think in a world where REITs are now mature and rates can't really decline further, returns going forward are not likely to match the past. IMO REITs as a whole are very highly valued today.
diversification is always best - especially if you need annual income. Bond laddering strategies produce predictable income, offer diversification of duration, and you can use a variety of classes (hy, govt, corporate, munis) in combination with with alternative income: REITs (are super expensive right now), MLPs (on sale now), but also income ETNs (like BDCL) that offer double digit yield, and maybe mix in a dividend growth fund or a few dividend growth stocks for capital appreciation and income growth.
Your mix might look something like: 40% diverse bond ladder (~3% current yield) = [1.2%] 10% VNQ (3.54% yield) = [.35%] 10% VDAIX (~2%, offers growth, income growth, dividends screened for quality) = [.2%] 10% MLPL (9.9% yield) = [.99%] 10% BDCL - (19.34% yield) = [1.93%] 10% VO (mid cap index, 1.3% yield) = [.13%] 10% PFF (preferred/convertibles - mostly financials - 6.31% yield) = [.63%]
Total yield: about 5.43% or $108,600*
*Not intended as investment advice. Educational purposes only.
I actually like the post from the above, @"scottnyc" good mix.
I've actually pulled this off in my personal trading account before.
Here would be my mix: 30% VNQ - just to get that REIT you want. 15% PKW - gives you blue chip ETF strategy play for low cost and better beta 10% NCV - closed end fund with convertible bonds 10% NHF - made up of 15% REIT, CLOs, and growth plays - fund still yields around 6% 10% JRI - fueled by real asset investments with a yield of over 6% - good investment for long-term 10% PFF - like mentioned above 10% MLPL - like above 5% SLV - need some type of metal.
Yield here would be higher on this portfolio than ScottNYC's, especially if you lever it with overnight margin (something i do to increase dividends, but pretty risky and I don't recommend it for newbs in the leveraged account world).
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