While real estate has always been as a good way to diversify your investment portfolio, it has been tantalisingly out of reach for many investors. However, that has now changed, thanks to an increasing number of stocks and ETFs that have made the market much more accessible.
Subsequently, there are now several ways small investors can add real estate stocks into their portfolios, including through Real Estate Investment Trusts (REITs). In other words, entities that buy and manage property assets, specifically to the benefit of their shareholders.
As these REITs handle thousands of publicly traded real estate transactions, they tend to be more liquid and diversified than singular real estate properties.
Moreover, as some REITs pay up to 90% of their taxable income to their shareholders, many investors have started to accumulate them just for the dividend income potential.
However, for those who are unfamiliar with these REITs, it can be difficult to know which ones to invest in. So, to help you, here are seven real estate stocks that might be solid options.
Noteworthy Real Estate Stocks
If you are interested in investing in Real Estate Stocks, here are some potential choices to consider.
1. Goodman Group
Founded in 1989 by Gregory Leith Goodman and headquartered in Sydney, the Goodman Group asx gmg is a successful organisation that develops, owns and manages a portfolio of industrial business and property space.
It has a range of business interests, including property development, property services, investment management and investment in indirectly and directly held industrial property.
2. Realty Income Corporation
Launched in the late 1960s, Realty Income Corporation (O) currently manages over 13,100 commercial (primarily retail) properties, most of which are restaurants and stores based in the USA. That said, 10% of their portfolio is based in Europe, predominantly in the UK.
Among their largest clients are Walgreens, Dollar General and Dollar Tree, and from annualised rent alone, the corporation generates a whopping $3.8 Billion from all their properties.
Moreover, the company has enjoyed dividend growth every year for the last 29 years, impressively achieving a compound annual growth rate of 4.4% (CAGR).
3. Equity Residential
Equity Residential (EQR) was founded in 1968 by Sam Zell, who famously said, ‘I did not invent the modern REIT industry, but I helped make it dance’.
A pioneer of public real estate companies and REITs, the company is known for providing its investors with major tax advantages.
Presently, it manages over 300 properties, which have a combined total of over 80,000 apartments. Most of these are based in Boston, New York, California, Seattle and Washington DC.
The company tends to focus on renters who have a high income and education level, which results in them enjoying a 96% occupancy rate.
4. Scentre Group
Since its launch in 2014, the Scentre Group (SCG) has built up a strong reputation in the real estate marketplace.
Operating under the property management, investment and construction segments, its primary operations include developing, leasing, managing and owning Westfield complexes across Australia and New Zealand.
While the property investment segment derives its net revenue from shopping centres, the other two generate income from property development and management fees charged to third parties.
5. Equinix, Inc.
You might not be aware, but not all REITs deal in commercial, office or residential properties. Others offer more specialised opportunities which most investors would never normally be able to access.
One such company is Equinix (EQIX) who manage and owns over 250 data centres and industry-related infrastructures, which collectively have an uptime of 99.9999%.
Currently, it generates its profitability from all over the world, including North and South America, Asia, Europe, Africa and the Middle East. Over the next year, it also plans to open another 57 data centres globally.
6. Unibail-Rodamco-Westfield SE
Unibail-Rodamco-Westfield SE (URW) is in the business of developing and operating flagship destinations. At present, they have interests in a range of segments including offices, convention and exhibition centres and shopping malls.
The company is headquartered in Paris and has been in operation since 1968. It owns several hotels, shopping centres and office buildings around the world.
7. Simon Property Group, Inc.
Launched in 1960, Simon Property Group (SPG) is an Indianapolis headquartered business that concentrates its efforts on commercial real estate – mostly shopping malls.
It has a portfolio of 250 properties in 37 US states and 14 countries. Much of its international interests come from shopping malls in Asia and properties in Europe.
Most recently, it paid $2.6B in dividends.
