Some promising REITs continue to capture the attention of income-oriented investors in today’s dynamic market environment. With their compelling dividend yields and potential for long-term growth, REITs offer an attractive avenue for investors seeking reliable income streams.
However, choosing the right REIT requires more than just looking at yields; factors like stability, growth potential, and market conditions play crucial roles. In this article, we’ll delve into three promising REITs that not only offer attractive yields but also demonstrate stability and growth potential.
Also read: Why You Should Make REIT Investments in 2024
3 Promising REITs To Invest Today
By employing robust screening tools, investors can identify promising REITs that not only offer attractive yields but also exhibit strong fundamentals and potential for growth. Here, we highlight three REITs that stand out based on their dividend yield, liquidity, and analyst ratings.
1. Vici Properties (NYSE: VICI)
Vici Properties stands out as a promising REIT focusing on experiential assets, particularly in the hospitality and entertainment sectors. With a portfolio that includes iconic properties like Caesars Palace and MGM Grand, Vici has established itself as a key player in the entertainment real estate market.
Despite the challenges posed by the pandemic, Vici Properties delivered impressive financial results in 2023. Total revenues surged by 38.9% year-over-year, showcasing the resilience of its asset base. Adjusted funds from operations per share, a crucial metric for assessing dividend sustainability, also saw a notable increase.
Investors are drawn to Vici not only for its attractive dividend yield, currently at 5.71%, but also for its history of dividend growth. With 21 analysts rating it a strong buy and a solid average rating of 4.67, Vici Properties demonstrates both stability and growth potential. Moreover, its active trading volume ensures liquidity, providing investors with the flexibility to enter and exit positions efficiently.
2. Starwood Property Trust (NYSE: STWD)
Starwood Property Trust, the largest commercial mortgage REIT in the US, boasts a diverse portfolio exceeding $27 billion across various segments. Despite facing headwinds in certain segments in 2023, including a decrease in GAAP net income, Starwood Property Trust remains an attractive option for income investors.
What sets Starwood apart is its robust dividend yield, currently at an impressive 9.81%. While its financial performance in 2023 may have been mixed, the company’s moderate buy rating from 8 analysts underscores confidence in its long-term prospects. Additionally, with a 50-day trading volume averaging over 2 million shares, Starwood Property Trust offers ample liquidity for investors.
3. Redwood Trust (NYSE: RWT)
Redwood Trust stands out as the promising REIT on our list, offering a forward yield of 11.24%. Despite challenges in its FY’23 financials, including a decrease in net interest income, Redwood Trust remains optimistic about its future prospects.
One of Redwood’s strengths lies in its diversification strategy, which includes offering housing credit to residential consumers and investors, along with early-stage venture capital investments. This diversified approach helps mitigate risk and positions Redwood for long-term growth.
With a moderate buy rating from 10 analysts and strong liquidity, Redwood Trust presents an attractive opportunity for income-oriented investors. CEO Christopher Abate’s confidence in the company’s future earnings growth underscores Redwood’s potential as a promising investment in the REIT space.