Real estate investment trusts (REITs) can offer passive income and solid returns when timed right. Many investors may scratch their heads after a quick 20% drop, but that’s not uncommon.
This year, Blackstone Inc. BX agreed to buy approximately $30 billion across four separate REITs. As Vanguard real estate ETF VNQ down sharply since January, it looks like Blackstone now sees value in safety real estate investment trusted.
Rising interest rates are typically a negative catalyst for REITs. That’s because dividend investors expect a risk premium over what they can get for short-term Treasury yield. With the two-year Treasury yield at 3.75%, income investors should look for dividend yields above the risk-free rate.
Here are three REITs that offer high yields compared to short-term Treasury yields:
IIPR
Innovative Industrial Properties Inc IIPR offers a dividend yield of 7.70%, or $7.00 per share annually, makes quarterly payments, and has a decent track record of growing its dividends over five years. Innovative industrial properties is a real estate investment trust engaged in the acquisition, ownership and management of specialty industrial properties that are leased to federally licensed operators for their regulated medical cannabis facilities.
As of the second quarter of 2022, Innovative Industrial Properties operated from 19 states, with 8,578 rentable square feet, and 88 of those leases were from the top 15 tenants such as: Curaleaf Holdings KURLFfor example.
See: EXCLUSIVE – Cresco Labs CEO Says Columbia Care Acquisition Expands Retail Presence
MPW
Medical Properties Trust Inc. MPW offers an 8.31% dividend yield, or $1.16 per share annually on quarterly payments, with a solid track record of growing its dividends for eight years.
This healthcare REIT owns and leases healthcare facilities primarily in the US, Germany and the UK. He is considered the first US company to invest in hospitals…
