Read on Twitter
REITs (Real Estate Investment Trust) are a great way to gain exposure to the RE sector
Owning REITs is similar in a way to being a landlord, but without all the landlord responsibilities. You are relying on the mgmt team
Let's look at a few Net-Lease REITs I like
REIT THREAD
Owning REITs is similar in a way to being a landlord, but without all the landlord responsibilities. You are relying on the mgmt team
Let's look at a few Net-Lease REITs I like
REIT THREAD
1/
"Realty Income"
Let's begin with ole reliable, $O. The company has a 15.3% avg annual return since going IPO in '94
$O is a triple net-lease REIT which means they collect rent and the tenants pay their own insurance, prop tax, and maintenance.
"Realty Income"
Let's begin with ole reliable, $O. The company has a 15.3% avg annual return since going IPO in '94
$O is a triple net-lease REIT which means they collect rent and the tenants pay their own insurance, prop tax, and maintenance.
2/
$O pays a dividend on a monthly basis and has done so for 604 consecutive months!
The company owns over 6,500 properties that are leased to roughly 600 different tenants
Let's look at some of their top tenants
$O pays a dividend on a monthly basis and has done so for 604 consecutive months!
The company owns over 6,500 properties that are leased to roughly 600 different tenants
Let's look at some of their top tenants
3/
$WBA
$DG
$FDX
$DLTR
$WMT
$CVS
$HD
All strong businesses that can withstand slowdowns. However, the company does has ~5% exposure to theaters and 3.3% exposure to LA Fitness, both struggling industries
The company saw Q3 rent collection of 93.1%
$WBA
$DG
$FDX
$DLTR
$WMT
$CVS
$HD
All strong businesses that can withstand slowdowns. However, the company does has ~5% exposure to theaters and 3.3% exposure to LA Fitness, both struggling industries
The company saw Q3 rent collection of 93.1%
4/
"The Little Brother"
The next REIT I will discuss is $STOR, which is like a little brother to $O. Also a triple net-lease REIT built in a similar fashion, but much younger having gone public in '14.
"The Little Brother"
The next REIT I will discuss is $STOR, which is like a little brother to $O. Also a triple net-lease REIT built in a similar fashion, but much younger having gone public in '14.
5/
$STOR has 2,587 properties that are leased to 511 customers as of Q3
The company has increased the dividend 44% since going public and has a 4.6% dividend yield
Let's look at some of their larger tenants
$STOR has 2,587 properties that are leased to 511 customers as of Q3
The company has increased the dividend 44% since going public and has a 4.6% dividend yield
Let's look at some of their larger tenants
6/
Fleet Farm
Bass Pro Shops
Ashley Furniture
Zips car wash
As you can see, the company focuses more on middle market companies, with 25.5% of their customers having annual revenues of $50M to $200M. The median tenant revenue is $53M
Fleet Farm
Bass Pro Shops
Ashley Furniture
Zips car wash
As you can see, the company focuses more on middle market companies, with 25.5% of their customers having annual revenues of $50M to $200M. The median tenant revenue is $53M
7/
$STOR does have a 5.2% exposure to health clubs and 3.9% exposure to theaters.
Collections in the month of October were 90%, which is a huge improvement from 70% in May
$STOR does have a 5.2% exposure to health clubs and 3.9% exposure to theaters.
Collections in the month of October were 90%, which is a huge improvement from 70% in May
8/
Both of these REITs are lead by strong management teams and have withstood the effects of the economic slowdown
Both stocks have seen strong support of late with $STOR up 16%. $O dipped as low as $38, but has recovered nicely
Both of these REITs are lead by strong management teams and have withstood the effects of the economic slowdown
Both stocks have seen strong support of late with $STOR up 16%. $O dipped as low as $38, but has recovered nicely
9/
Both REITs have some exposure to areas of concern but overall strong portfolios that are well diversified. If we see a sell-off due to rising COVID cases, remember how that worked out last time. The best of Breed stocks recover.
Both REITs have some exposure to areas of concern but overall strong portfolios that are well diversified. If we see a sell-off due to rising COVID cases, remember how that worked out last time. The best of Breed stocks recover.
10/
Want to learn more about REITs and see how you can research them on your own?
Grab a copy of my book "A Guide To Understand REITs"
I will grant 50% off, only $10, through 11pm PST! https://gumroad.com/l/idVnW/flash
Want to learn more about REITs and see how you can research them on your own?
Grab a copy of my book "A Guide To Understand REITs"
I will grant 50% off, only $10, through 11pm PST! https://gumroad.com/l/idVnW/flash
