Updated on January 6th, 2022 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 1.5% 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:
- Stock price
- Dividend yield
- Market capitalization
- 5-year beta
You can download your free 200+ REIT list (along with important financial metrics like dividend yields and payout ratios) 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 7 REITs today based on expected total returns.
Table Of Contents
In addition to the full downloadable Excel spreadsheet, this article covers our top 7 REITs today, as ranked using expected total returns from The Sure Analysis Research Database.
The table of contents below allows for easy navigation.
- How To Use The REIT List
- Why Invest In REITs?
- REIT Financial Metrics
- The Top 7 REITs Today
#7: VICI Properties (VICI)
#6: Clipper Properties (CLPR)
#5: Two Harbors Investment Corp. (TWO)
#4: Kilroy Realty Corporation (KRC)
#3: Uniti Group Inc. (UNIT)
#2: Omega Healthcare Investors (OHI)
#1: Innovative Industrial Properties (IIPR)
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.
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.
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.
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).
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 cash flow.
Related: How To Value REITs
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-to-FFO reconciliation from Realty Income (O), one of the largest and most popular REIT securities.
Source: Realty Income Annual Report
In 2020, net income was $395 million while FFO available to stockholders was above $1.1 billion, 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 7 REITs Today
Below we have ranked our top 7 REITs today based on expected total returns.
Expected total returns are in turn made up from dividend yield, expected growth on a per unit basis, and valuation multiple changes. Expected total return investing takes into account income (dividend yield), growth, and value.
Note: The REITs below have not been vetted for safety. These are high expected total return securities, but they may come with elevated risks.
We encourage investors to fully consider the risk/reward profile of these investments.
Top REIT #7: VICI Properties (VICI)
- Expected Total Return: 11.5%
- Dividend Yield: 5.0%
VICI Properties owns one of the largest portfolios of gaming, hospitality and entertainment destinations, including the well-known Caesars Palace. It was formed in late 2017 as a spin-off from Caesars Entertainment (CZR). Caesars Entertainment generates 83% of the rental income of VICI Properties.
VICI Properties is much more resilient than most REITs, as the core experiences its tenants offer cannot be achieved at home, work or digitally.
Source: Investor Presentation
On August 4th, 2021, VICI Properties agreed to acquire MGM Growth Properties (MGP) for $17.2 billion, including $5.7 billion of debt. The deal is expected to close in the first half of 2022.
If the deal materializes, VICI Properties will own 10 properties on the Las Vegas Strip and will thus become the largest experiential REIT, with enhanced diversification.
Click here to download our most recent Sure Analysis report on VICI Properties (preview of page 1 of 3 shown below):
Top REIT #6: Clipper Properties (CLPR)
- Expected Total Return: 11.5%
- Dividend Yield: 3.9%
Clipper Properties is a REIT that was founded by the merger of four pre–existing real estate companies. The founders retain about 2/3 of the ownership and votes today as if they have never sold a share, thereby causing some corporate governance concerns but also giving investors knowledge that the insiders are heavily incentivized to look out for shareholder interests.
Clipper Properties owns commercial (primarily multifamily and office with a small sliver of retail) real estate across New York City.
Click here to download our most recent Sure Analysis report on Clipper Properties (preview of page 1 of 3 shown below).
Top REIT #5: Two Harbors Investment Corp. (TWO)
- Expected Total Return: 12.3%
- Dividend Yield: 11.7%
Two Harbors Investment Corp. is a residential mortgage real estate investment trust (mREIT). As such, it focuses on residential mortgage–backed securities (RMBS), residential mortgage loans, mortgage servicing rights, and commercial real estate. The trust derives nearly all of its revenue in the form of interest through available–for–sale securities.
In early November (11/08/21), Two Harbors reported financial results for the third quarter. Quarterly earnings–per–share came in at $0.24. Book value per share decreased to $6.40 from $6.42 quarter–over–quarter. Two Harbors settled a $4.0 billion unpaid principal balance of MSR through its MSR flow–sale program and closed on another $15.3 billion UPB through bulk transactions.
The company’s total portfolio of $17.9 billion grew from $17.1 billion quarter–over–quarter.
Click here to download our most recent Sure Analysis report on Two Harbors (TWO) (preview of page 1 of 3 shown below).
Top REIT #4: Kilroy Realty Corporation (KRC)
- Expected Total Return: 12.5%
- Dividend Yield: 3.0%
Kilroy Realty Corporation is a self–administered real estate investment trust. The company operates in office and mixed–use submarkets along the West Coast.
The company owns, develops, acquires, and manages real estate assets, consisting primarily of properties in the coastal regions of Los Angeles, San Diego, San Francisco, and Seattle.
KRC’s stabilized portfolio totaled approximately 14.2 million square feet of primarily office and life science space. The company also had more than 1,000 residential units in Hollywood and San Diego.
Click here to download our most recent Sure Analysis report on Kilroy Realty (preview of page 1 of 3 shown below).
Top REIT #3: Uniti Group (UNIT)
- Expected Total Return: 12.7%
- Dividend Yield: 4.6%
Uniti Group focuses on acquiring, constructing, and leasing out communications infrastructure in the United States. In particular, it owns millions of miles of fiber strand along with other communications real estate.
On November 4th, Uniti Group reported Q3 results. AFFO per share grew from $0.42 in the year–ago period to $0.43 in Q3 2021. Revenue grew slightly year–over–year from $258.8 million to $266.7 million. Adjusted EBITDA increased 9% to $217 million from $199 million year–over–year.
Uniti reported total costs and expenses of $225.9 million, down from $248.2 million in the year–ago period. Meanwhile, while Q3 revenue missed consensus estimates, the company still reaffirmed its 2021 revenue guidance of $1.08 billion to $1.09 billion.
Management raised adjusted EBITDA guidance to $854 million to $866 million from $846 million to $858 million. Uniti also expects 2021 AFFO to be in the range of $416 million to $518 million and net interest expense of $456 million.
Click here to download our most recent Sure Analysis report on Uniti (preview of page 1 of 3 shown below).
Top REIT #2: Omega Healthcare Investors, Inc. (OHI)
- Expected Total Return: 13.8%
- Dividend Yield: 8.7%
Omega Healthcare Investors is one of the premier skilled nursing focused healthcare REITs. It also generates about 20% of its 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
Click here to download our most recent Sure Analysis report on Omega Healthcare Investors (preview of page 1 of 3 shown below).
Top REIT #1: Innovative Industrial Properties, Inc. (IIPR)
- Expected Total Return: 19.0%
- Dividend Yield: 2.6%
Innovative Industrial Properties, Inc. is a single-use “specialty REIT” that exclusively focuses on owning properties used for the cultivation and production of cannabis.
Because the industry is in the midst of a legal transition, there are constraints on capital available to businesses engaged in the cannabis business.
Innovative Industrial Properties owns 73 properties in 18 states, representing approximately 6.6 million rentable square feet, which were 100% leased with a weighted-average remaining lease term of over 16 years.
Having the fortunate status as the only publicly traded cannabis REIT in the US has led to stunning returns, and growth.
Source: Investor Presentation
Click here to download our most recent Sure Analysis report on Innovative Industrial Properties (preview of page 1 of 3 shown below):
The REIT Spreadsheet list in this article contains a list of publicly-traded Real Estate Investment Trusts.
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:
- Dividend Kings List: Dividend Stocks With 50+ Years of Rising Dividends
- Dividend Aristocrats List: 25+ Years of Rising Dividends
- Dividend Champions List: 25+ years of rising dividends, that do not qualify as Dividend Aristocrats
- Dividend Achievers List: 10+ years of dividend increases
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 two articles:
You might also be looking to create a highly customized dividend income stream to pay for life’s expenses.
The following lists provide useful information on high dividend stocks and stocks that pay monthly dividends:
Bonus: Listen to our interview with Brad Thomas on The Sure Investing Podcast about intelligent REIT investing in the below video.