2020 List Of All REITs | 166 Publicly-Traded REITs Sure Dividend

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2020 List Of All REITs | 166 Publicly-Traded REITs


Updated on July 14th, 2020 by Bob Ciura

Spreadsheet data updated daily

Real estate investment trusts – or REITs, for short – can be fantastic securities for generating meaningful portfolio income. REITs widely offer higher dividend yields than the average stock.

While the S&P 500 Index on average yields less than 2% right now, it is relatively easy to find REITs with dividend yields of 5% or higher.

The following downloadable REIT list contains a comprehensive list of U.S. Real Estate Investment Trusts, along with metrics that matter including:

You can download your free REIT list (along with the above mentioned financial metrics) by clicking on the link below:

 

In addition to the downloadable Excel sheet of all REITs, this article discusses why income investors should pay particularly close attention to this asset class. And, we also include our top 10-ranked REITs today.

Table Of Contents

In addition to the full downloadable Excel spreadsheet, this article covers our top 10 REITs today, as ranked using expected total returns from The Sure Analysis Research Database.

The list is narrowed down further based on a qualitative assessment of business model strength, growth potential, and an analysis of debt levels. The top 10 list is ranked by 5-year expected total returns, in order of lowest to highest.

The table of contents below allows for easy navigation.

How To Use The REIT List To Find Dividend Stock Ideas

REITs give investors the ability to experience the economic benefits associated with real estate ownership without the hassle of being a landlord in the traditional sense.

Because of the monthly rental cashflows generated by REITs, these securities are well-suited to investors that aim to generate income from their investment portfolios. Accordingly, dividend yield will be the primary metric of interest for many REIT investors.

For those unfamiliar with Microsoft Excel, the following images show how to filter for REITs with dividend yields between 5% and 7% using the ‘filter’ function of Excel.

Step 1: Download the Complete REIT Excel Spreadsheet List at the link above.

Step 2: Click on the filter icon at the top of the ‘Dividend Yield’ column in the Complete REIT Excel Spreadsheet List.

REIT Landing Page Excel Document 1

Step 3: Use the filter functions ‘Greater Than or Equal To’ and ‘Less Than or Equal To’ along with the numbers 0.05 ad 0.07 to display REITs with dividend yields between 5% and 7%.

This will help to eliminate any REITs with exceptionally high (and perhaps unsustainable) dividend yields.

Also, click on ‘Descending’ at the top of the filter window to list the REITs with the highest dividend yields at the top of the spreadsheet.

REIT Landing Page Excel Document 2

Now that you have the tools to identify high-quality REITs, the next section will show some of the benefits of owning this asset class in a diversified investment portfolio.

Why Invest in REITs?

REITs are, by design, a fantastic asset class for investors looking to generate income. Thus, one of the primary benefits of investing in these securities is their high dividend yields.

The currently high dividend yields of REITs is not an isolated occurrence. In fact, this asset class has traded at a higher dividend yield than the S&P 500 for decades.

This trend is shown below.

REITs Persistently High Dividend Yields

Source: NAREIT: The Investor’s Guide to REITs

The high dividend yields of REITs are due to the regulatory implications of doing business as a real estate investment trust. In exchange for listing as a REIT, these trusts must pay out at least 90% of their net income as dividend payments to their unitholders (REITs trade as units, not shares).

Sometimes you will see a payout ratio of less than 90% for a REIT, and that is likely because they are using funds from operations, not net income, in the denominator for REIT payout ratios (more on that later).

One might think that the high payout ratios of REITs would result in inferior total return performance compared to their peers (even though they have high dividend yields).

This is not the case. According to MSCI, which compiles and tracks the index, the MSCI US REIT Index generated total annual returns of 10.6% per year since December 30, 1994. It outperformed the MSCI USA Investable Market Index (IMI), its parent index that tracks the large, mid and small cap segments of the USA market, by approximately 60 basis points per year in the same period.

 

REIT Financial Metrics

REITs run unique business models. More than the vast majority of other business types, they are primarily involved in the ownership of long-lived assets. From an accounting perspective, this means that REITs incur significant non-cash depreciation and amortization expenses.

How does this affect the bottom line of REITs?

Depreciation and amortization expenses reduce a company’s net income, which means that sometimes a REIT’s dividend will be higher than its net income, even though its dividends are safe based on its cash flow.

To give a better sense of financial performance and dividend safety, REITs eventually developed the financial metric funds from operations, or FFO. Just like earnings, FFO can be reported on a per-unit basis, giving FFO/unit – the rough equivalent of earnings-per-share for a REIT.

FFO is determined by taking net income and adding back various non-cash charges that are seen to artificially impair a REIT’s perceived ability to pay its dividend.

For an example of how FFO is calculated, consider the following net income-FFO reconciliation from a recent earnings release of Realty Income (O), one of the largest and most popular REIT securities.

Source: Realty Income Earnings Release

In the 2019 fourth quarter, net income per unit was $0.39 per share while FFO per unit was $0.85, a sizable difference between the two metrics. This shows the profound effect that depreciation and amortization can have on the GAAP financial performance of real estate investment trusts.

The Top 10 REITs Today

Below we have ranked our top 10 REITs today based on qualitative strength and total return potential. These stocks have positive expected rates of return over the next five years, and high dividend yields which make them appealing for income investors.

Added emphasis has been placed on dividend sustainability, which is even more important for investors to take into account during the coronavirus crisis, as it has had a particularly large impact on REITs. The stocks are listed in order of attractiveness based on a combination of qualitative and quantitative factors, such as future growth potential, dividend yield, and dividend safety.

Top REIT #10: Innovative Industrial Properties (IIPR)

Innovative Industrial Properties, Inc. owns properties used for the cultivation and production of marijuana, with a focus on the medicinal market. As of July 1, 2020, IIPR owned 58 properties located in Arizona, California, Colorado, Florida, Illinois, Maryland, Massachusetts, Michigan, Minnesota, New York, Nevada, North Dakota, Ohio, Pennsylvania and Virginia.

Properties total approximately 4.4 million rentable square feet, which have an occupancy of 99.2% and a weighted-average remaining lease term of approximately 16.2 years. IIPR has a diverse property portfolio across multiple industry-leading tenants.

Source: Investor Presentation

On May 6th, 2020, IIPR announced financial results for the first quarter. For the quarter, revenues and normalized AFFO/share grew to $21.1 million and $1.12, an increase of 210% and 249%, respectively. The growth was driven primarily by the acquisition and leasing of new properties, as well as contractual rental escalations at certain facilities. From January 1st to May 6th, 2020, the company acquired nine properties totaling ~1.1 million rentable square feet. The aggregate investment cost $202.1 million.

IIPR is attractive for income investors not just because of its nearly 5% dividend yield, but also for the company’s future growth potential. While so many REITs are heavily damaged by the coronavirus, IIPR has a unique advantage in that medical-use and recreational-use cannabis operations have been deemed as “essential businesses” and thus have been allowed to remain open.

IIPR has grown AFFO dramatically since the company’s IPO. Over the past three years, not a single quarter has seen less AFFO/share quarter-over-quarter, fueled by non-stop acquisitions. To capitalize on the growth of the cannabis sector, IIP acquired 35 properties in 2019 alone. With increasing legalization across the U.S., we expect growth to be sustained over the next several years.

Dividends have grown at a high rate, alongside FFO. Distributions grew by an astonishing 135.8% in fiscal 2019. The stock has a hefty 4.7% yield, although investors should note the elevated risk in the cannabis industry. Potential risk factors include regulatory and tenant-credibility concerns. In addition, dilution is a risk. To fund its mass-acquisitions, the company has been issuing lots of additional equity which can have a dilutive impact.

IIPR’s dividend appears secure, as long as the company continues to generate FFO growth. IIPR paid a dividend of $1.00 per share in the first quarter, which was covered by AFFO of $1.12 per share. With a high yield and significant growth potential, IIPR is an attractive stock for investors interested in growth-oriented REITs.

Top REIT #9: Digital Realty (DLR)

Digital Realty Trust is another attractive REIT because of the unique safety it offers during the coronavirus crisis. Digital Realty owns and develops properties for the technology industry. Digital Realty’s properties are a combination of data centers that store and process information, technology manufacturing sites, and Internet gateway data centers which allow major metro areas to transmit data.

Source: Investor Presentation

On March 13th, 2020 Digital Realty announced that it had completed the combination of Interxion (prior ticker: INXN),a provider of cloud data centers in Europe. Legacy INXN shareholders now own ~20% of the new Digital Realty. This acquisition meaningfully expanded the company’s international reach.

On May 7th, 2020 Digital Realty reported Q1 2020 results. For the quarter Digital Realty’s revenue came in at $823 million, representing a 5% increase from the previous quarter and a 1% increase from the same quarter last year. Core funds-from-operations (FFO) came in at $1.53, compared to $1.73 year-over-year.

Digital Realty also provided a 2020 outlook. The company expects $3.725 billion to $3.825 billion in revenue, $2.075 billion to $2.125 billion in Adjusted EBITDA, 85% to 86% occupancy, and core FFO per share in a range of $5.90 to $6.10. These results would indicate another very successful year, which is particularly impressive given the struggles of the broader REIT industry.

Since 2010 Digital Realty increased its FFO-per-share by an average compound rate of 7.8% per year. The trust’s growth rate is especially impressive considering that it has increased its share count every single year during this time frame. Digital Realty has been very strategic in its acquisitions. For example, in 2017 Digital Realty purchased DuPont Fabros Technology, another tech-focused REIT. More recently, Digital Realty added Interxion, gaining exposure to the European cloud industry.

Digital Realty’s dividend payout ratio (using FFO instead of earnings) is comparatively low for a REIT, projected at 75% for 2020. This should give shareholders confidence that the dividend is safe even if the market were to enter a downturn. Digital Realty’s chief competitive advantage is that it is among the largest technology REITs in the world. This gives the REIT a size and scale advantage that competitors have difficulty matching.

Top REIT #8: Public Storage (PSA)

Public Storage is a REIT that was formed in 1980. The trust owns an interest in about 2,400 properties that lease storage space, typically on a month-to-month basis, making it the largest such entity in the United States. The trust produces about $2.8 billion in annual revenue and has a market capitalization of $34 billion.

Public Storage had a surprisingly strong beginning to the year. In the 2020 first quarter, FFO-per-share rose 3.6% to $2.61. Revenue increased 3.9% year-over-year. The company saw lower move-in activity in recent months, but move-out activity has declined as well. Same-store square foot occupancy of 92.7% expanded from 92.1% at the same time last year.

The company warned investors that financial results will likely worsen in the second quarter, as revenue has taken a hit from the coronavirus. At the same time, costs have increased due to enhanced safety precautions taken and temporary wage increases.

Public Storage has an impressive track record of growth. FFO-per-share has roughly doubled since 2008, for a compound annual growth rate in the mid-single-digits. We believe growth will slow somewhat from these levels due to fundamental over-crowding in the storage space industry. We expect 3% annual FFO-per-share growth for the next five years.

We also expect the company to hold up relatively well in comparison to many other REITs if a recession occurs in the near future. Public Storage should perform well during the next recession – as it did during the last one – given the defensive nature of the business. It also has the obvious competitive advantage of scale and name brand recognition given that it is the largest storage operator in the United States.

We expect 3% FFO-per-share growth over the next five years, while the stock has an attractive dividend yield above 4%.

Top REIT #7: Federal Realty Investment Trust (FRT)

Federal Realty is a shopping center REIT similar to Brixmor Property Group. However, it concentrates in high-income, densely-populated coastal markets in the US, allowing it to charge more per square foot than its competition. Federal Realty generates approximately $950 million in annual revenue.

Its biggest claims to fame are its A-rated balance sheet (making it one of the most conservative investments in the REIT sector) and 52 straight years of growing its dividend (the longest streak among REITs) at a highly impressive CAGR of 7%.

Federal Realty is on the exclusive list of Dividend Kings.

As a retail REIT, Federal Realty has been negatively impacted by the coronavirus crisis:

Source: Investor Presentation

The company reported first-quarter financial results on May 7th. Revenue of $232 million declined fractionally, while adjusted FFO-per-share of $1.50 declined 3.9% from the same quarter last year.

The company collected 53% of April rent, and reported that about 47% of its commercial tenants were open and operating based on annualized base rent. Occupancy stood at 93.6% at the end of the first quarter. More recently, rent collection trends improved slightly, to 54% in May.

Federal Realty believes that its portfolio of flexible retail-based properties located in strategically selected major markets that are transit-oriented, first ring suburban locations will continue to thrive for the foreseeable future. This is because these markets’ superior income and population characteristics, significant barriers to entry, and strong demand characteristics will drive strong long-term rent growth.

Furthermore, by keeping the portfolio at a manageable size and restrained to a limited number of core markets, management can give each asset the necessary focus to drive out-performance. In response to the coronavirus-related shutdowns, the company is boosting its liquidity to help it get through the coronavirus crisis. Federal Realty drew $990 million of its $1 billion revolving credit facility in March.

Top REIT #6: National Retail Properties (NNN)

National Retail Properties is a REIT that owns ~3,000 single-tenant, net-leased retail properties across the United States. It is focused on retail customers because they are much more likely to accept rent hikes in order to avoid switching locations and losing their customer base.

Thanks to this strategy, National Retail has offered consistent growth with markedly low volatility. It is also characterized by very high occupancy rates; its 15-year low occupancy rate is 96%. In fact, from 2003 to 2019 its occupancy never fell below 96.4%.

Source: Investor Presentation

National Retail has increased its dividend for 30 consecutive years (a record matched by only three publicly traded REITs), making it a member of the Dividend Champions.

In the 2020 first quarter, revenue increased 6.9% year-over-year, while adjusted FFO-per-share increased 4.4% to $0.71. The company reported an occupancy rate of 98.8% as of March 31st. Still, investors should note the elevated level of risk for National Retail Properties due to coronavirus.

As of April 29th, the company collected approximately 52% of April 2020 rent, representing approximately 37% of annualized base rent. The company is negotiating with tenants that have requested rent deferrals, but investors should note that April rent collection is below that of several other REITs.

Therefore, National Retail Properties carries somewhat higher risk than Realty Income, but it could generate higher returns due to its compressed valuation and high dividend yield.

National Retail Properties has an impressive track record of steady growth. It has grown its FFO per share by 5.8% per year on average since 2009. We believe that growth will slow moving forward as investment spreads compress, but a high level of occupancy could still provide it with low single-digit revenue and FFO-per-share growth.

The bulk of National Retail’s FFO-per-share growth will come from net new property acquisitions, which it is well-positioned to execute upon with its recent capital raises. We expect some headwinds this year from the coronavirus outbreak, but assume that the company will bounce back fairly well in the years to come.

The company has a healthy balance sheet, with less than $327 million of debt maturing through 2022. It has a strong credit rating of BBB+ from Standard & Poor’s, and a debt-to-EBITDA ratio of 4.9x. Therefore, while National Retail Properties faces elevated risk from the coronavirus crisis and retail closures across the U.S., it is well-positioned to emerge once the crisis ends.

Top REIT #5: W.P. Carey (WPC)

W.P. Carey is a commercial real estate focused REIT that operates two segments: real estate ownership and investment management. The REIT operates more than 1,200 single tenant properties on a net lease basis, across the US and Northern and Western Europe. Its asset management business has AUM of approximately $2.8 billion.

W.P. Carey has a highly diversified real estate property portfolio across multiple various industry groups.

Source: Investor Presentation

W. P. Carey reported its first quarter earnings results on May 1. The trust reported that its revenues totaled $309 million during the quarter, up 3.6% from the same quarter last year. FFO-per-share came to $1.25 on a per-share basis, which was $0.11, or 10% more than the analyst consensus. FFO-per-share increased 3% year-over-year.

Like many other REITs, W. P. Carey withdrew its guidance for 2020, citing the coronavirus crisis and the unknown impact it will have on its operations. So far, W.P. Carey is weathering the storm very well, as it not only generated FFO-per-share growth in the first quarter, but it also has collected more than 95% of its April rents at the time of the earnings release.

Plus, W.P. Carey had a high occupancy rate of 98.8% in the first quarter. Trends have remained steady since then, with the company reporting 96% rent collection for April and 95% rent collection for May.

W. P. Carey generated FFO-per-share growth at a rate of 6% annually between 2009 and 2019, which was a very solid growth rate for a real estate investment trust. The growth rate has slowed down over the years, as W. P. Carey’s FFO-per-share growth rate has averaged just 3% between 2014 and 2018. Still, this is a decent growth rate, and we expect a similar growth rate of 3%-4% annually going forward.

Growth is fueled by investments in new properties. Since 2012, the REIT invested more than $10 billion into new assets by either purchasing entire REITs or through single-asset/portfolio purchases. Plus, due to the defensive nature of its business and a strong performance during past recessions, we believe that W.P. Carey will fare well during the coronavirus crisis.

One of W.P. Carey’s strengths is its balance sheet which is in better shape than many other REITs. W.P. Carey has a solid credit rating of BBB from Standard & Poor’s. It has a fairly low level of maturities ($768 million) through 2022. It also has a long history of stable dividend growth, having increased its dividend every year since 1998.

Top REIT #4: Omega Healthcare Investors (OHI)

Omega Healthcare Investors is one of the premier skilled nursing focused healthcare REITs. It also generates about 20% of its $930 million annual revenue from senior housing developments. The company’s three main selling points are its financial, portfolio, and management strength. Specifically, Omega is the leader in Skilled Nursing Facilities.

Source: Investor Presentation

Omega reported first-quarter financial results on May 4th. Revenue increased 13% year-over-year to $253 million in the first quarter, as Omega continued to grow its portfolio. Funds from operation, or FFO, was $181 million, an increase of 26% year-over-year. On a per-share basis, adjusted FFO grew 4% to $0.79.

The trust’s management team said its tenants are facing a “challenging” period of lower revenues and rising expenses thanks to COVID-19, and we’ve reduced our FFO-per-share estimate for this year to $2.90 as a result. We see Omega as somewhat insulated from the crisis and thus, its FFO should hold up fairly well, even under a protracted slowdown from the virus. Omega collected 98% of its rents and mortgage payments due in April.

The portfolio benefits from a favorable near-term supply and demand outlook. It also has no material upcoming lease expirations or lease renewal risk and enjoys strong geographic and operator diversification (71 operators across 40 states plus the United Kingdom). Omega also has an investment-grade credit rating of BBB-.

While uncertainties over the future of the healthcare system in the United States remain and some of its tenants are not financially strong, the company’s exposure to a growing segment of healthcare combined with a high dividend yield, make the stock a recession-resistant buy.

Top REIT #3: Iron Mountain (IRM)

Iron Mountain is a storage and information management REIT. Its services include record management, destruction, fulfillment services, data protection and recovery, server and computer backup services, and safeguarding of electronic and physical media. Iron Mountain operates in North and Latin America, Europe and the Asia Pacific region.

Iron Mountain reported its first-quarter earnings results on May 7. Revenues of $1.07 billion increased 1.9% from the previous year’s quarter. Revenues would have been higher by 3.2% year-over-year at constant forex rates. FFO came in at $0.59 per share during the first quarter, which was up 20% compared to the previous year’s quarter, although the company benefited from a favorable comparison.

Iron Mountain withdrew its previously announced guidance for 2020. During the first quarter, the virus crisis did not have a meaningful impact, and the operating performance was quite solid. Iron Mountain benefits from a high-quality business model, which continues to see steady demand.

Source: Investor Presentation

Iron Mountain is not a high-growth investment trust, but it still managed to increase its cash flows per share by 3% annually since 2009. Growth has been driven by several contributing factors. The first one is organic revenue growth, primarily through pricing increases. Iron Mountain has achieved organic revenue growth rates of ~3% in the past, and guides for organic revenue growth of 3% to 5% annually in the future.

Iron Mountain’s focus on secure data storage sets the trust aside from competitors in the storage industry by providing a unique focus. The trust is active in several geographic markets across the US and internationally, and plans to expand its international operations further.

This geographic diversification, coupled with the fact that demand for its services is not very cyclical, means that Iron Mountain is relatively resilient to recessions, which should help during the current crisis. Cash flows continued to grow during the last financial crisis, resulting in a strong recession performance.

Top REIT #2: STAG Industrial, Inc. (STAG)

STAG Industrial is the only pure-play industrial REIT active across the entire domestic industrial real estate market. It is focused on single-tenant industrial properties and has ~450 buildings across 38 states in the United States.

As per the latest data, 55% of the tenants are publicly rated and 33% of the tenants are rated “investment grade.” The company typically does business with established tenants to reduce risk. It also pursues broad geographic and tenant diversification to further reduce risk.

The company recently reported solid first-quarter financial results. Core Funds From Operation, or FFO, increased 33% to $70.6 million compared with the same quarter the previous year. Acquisitions fueled the company’s high growth rate, although equity issuances to finance these acquisitions resulted in much lower per-share growth. FFO-per-share increased a more modest 4.4%, although growth is still impressive in the current environment.

A major tailwind for the business has been the rise of e-commerce, as e-commerce accounted for 53% of long-term leasing in the most recent quarter.

Source: Investor Presentation

The coronavirus has hurt shipping and by extension the industrial REIT sector. Furthermore, the industrial sector is typically fairly cyclical and therefore suffers during recessions.

However, STAG possesses strong regionally based asset management teams with capital projects groups that enable them to engage in value add opportunities to continue growing the portfolio and its cash flow regardless of market conditions. Furthermore, it only owns ~0.5% of the assets in its target universe, giving it an enormous growth runway.

The company recently notified investors that tenants that have requested rent relief equal to just ~1% of annual base rent, a promising figure that indicates STAG is holding up relatively well during the coronavirus crisis. The company has also paused acquisitions to preserve cash in this uncertain environment.

So far, STAG’s key financial metrics are holding up well. Occupancy stood at 96.2% in the first quarter, and the company received 90% of April base rental billings and 99% of May rent. High occupancy and rent collection bodes well for the sustainability of the company’s dividend payout. STAG is not the highest-yielding REIT around at less than 5%, but in return it offers a sustainable dividend.

Top REIT #1: Realty Income (O)

Realty Income is a retail-focused REIT that owns more than 6,500 properties. Realty Income owns retail properties that are not part of a wider retail development (such as a mall), but instead are standalone properties. This means that the properties are viable for many different tenants, including government services, healthcare services, and entertainment.

Realty Income ranks as the top spot on this list in part because of its highly impressive dividend history, which is unmatched among the other monthly dividend stocks. Realty Income has declared 600+ consecutive monthly dividend payments without interruption, and has increased its dividend 107 times since its initial public offering in 1994.

Realty Income is a member of the Dividend Aristocrats.

Realty Income is not immune from the coronavirus crisis, as many retail outlets have been closed in recent weeks. However, Realty Income continues to show why it is a best-in-class retail REIT. Its top four industries sell essential goods, including convenience stores, drug stores, dollar stores, and grocery stores. This has helped the company’s rent collection results.

Source: Investor Presentation

In the 2020 first quarter, adjusted FFO-per-share increased 7.3% to $0.88, as total revenue increased 17% year-over-year. Realty Income collected 83.5% of expected contractual rent in May, and 85.7% of contractual rent due in June.

The company will see a negative impact from coronavirus in 2020, but it has taken aggressive action to shore up its financial position to weather the storm. Realty Income raised $754 million in the first quarter through the sale of stock. Total liquidity available as of July 1, 2020 was approximately $2.7 billion, consisting mostly of $2.4 billion of remaining borrowing capacity available on the revolving credit facility. Therefore, we expect the company to make it through the coronavirus with its dividend intact.

Final Thoughts

The Complete REIT Spreadsheet List contains a list of all publicly-traded Real Estate Investment Trusts.

Bonus: Listen to our interview with Brad Thomas on The Sure Investing Podcast about intelligent REIT investing in the below video.

 

However, this database is certainly not the only place to find high-quality dividend stocks trading at fair or better prices.

In fact, one of the best methods to find high-quality dividend stocks is looking for stocks with long histories of steadily rising dividend payments. Companies that have increased their payouts through many market cycles are highly likely to continue doing so for a long time to come.

You can see more high-quality dividend stocks in the following Sure Dividend databases, each based on long streaks of steadily rising dividend payments:

Alternatively, another great place to look for high-quality business is inside the portfolios of highly successful investors. By analyzing the portfolios of legendary investors running multi-billion dollar investment portfolios, we are able to indirectly benefit from their million-dollar research budgets and personal investing expertise.

To that end, Sure Dividend has created the following stock databases:

You might also be looking to create a highly customized dividend income stream to pay for life’s expenses.

The following two lists provide useful information on high dividend stocks and stocks that pay monthly dividends:

Thanks for reading this article. Please send any feedback, corrections, or questions to support@suredividend.com.


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