Finding the best REITs to buy can lead to great returns if you do it right. One way to do that is by buying high-quality REITs. These investment vehicles are basically like your own little mutual fund focused on investments in real estate. If real estate values go up, your return will be greater than what a straight investment would give you.
These investment vehicles are especially attractive for those looking for additional passive income. With so many available, choosing the best is really hard – but this article will help. It highlights some of the best REITs to buy currently on the market and provides insights into why each one should be considered for purchase.
Now is the time to take advantage of low prices and purchase REITs. Due to recent market volatility, REITs that had historically been strong performers have seen their stock prices plummet. In some cases, to unprecedented lows. However, this presents a financially savvy individual with the chance to invest in large companies at bargain prices.
Getting in on a purchase is important, especially before other investors see the potential and drive up the price, diminishing or eliminating any discounts or savings for strategic buyers.
Purchasing REITs right now means investing in a market with expected returns over the long term without having to pay past market prices; in short, it could be worthwhile.
From their high dividend yields to their potential for growth, there’s an option here for any sort of investor. Read on to learn more about these opportunities and get started investing today.
| Symbol | Company | Price |
| DLR | Digital Realty Trust | $107.40 |
| RYN | Rayonier | $34.87 |
| SBRA | Sabra Health Care REIT | $12.54 |
Digital Realty Trust (DLR)
Digital Realty Trust (NYSE:DLR) is a noteworthy technology-focused REIT. Instead of rental apartments or related buildings, DLR provides infrastructure space for housing high-tech server data centers. The company’s services are highly sought after by businesses that want the convenience of cloud computing but still need reliable physical server spaces to store their data. Now is an opportune time for income investors to take advantage of DLR stock.
Investors are none too happy with the rise of interest rates this year. The REIT industry relies on banks to provide funding, which has been difficult with the increase in rates that affects all industries. In addition, when rates rise, government bonds become more attractive for income-focused investors versus REITs. Recent stock market volatility has also made investors wary of REITs.
DLR has been relatively quiet recently, with the only major news being the recent public offering of $350 million in additional 5.55% bonds due in 2028. This comes after DLR’s previous issuance of $550 million with the same terms and conditions. The additional capital enables the company to exercise its financial flexibility, ensuring it can capitalize on further growth opportunities. Whether it be through acquisition or development projects and even investments in high-yielding accounts – Digital Realty is well prepared for a rising interest rate environment, an impressive feat underscoring its sound fiscal standing.
The selloff in tech stocks has caused a drop in their value. It creates a good chance to purchase at reduced prices and reap the income advantages. With its sturdy customer base and promise of rapid growth, DLR is worth looking into for those looking to invest in the best REITs to buy with a unique approach.
Rayonier (RYN)
The modern economy is characterized by high inflation levels and record-breaking prices that make everyday purchases more difficult to afford. Investments in stocks, bonds, and real estate become even more appealing during these times as an additional means of protection against the devaluation of money.
Rayonier (NYSE:RYN) offers an interesting combo investment opportunity combining the security of property ownership with the profit potential of a traditional commodity producer. There’s no other company quite like it. So if you’re looking for a way to keep your hard-earned money safe from inflation, enhance your portfolio with real assets, and have growth potential, then definitely invest in Rayonier.
Rayonier is a powerhouse in the timber industry, owning and leasing large swaths of timberlands throughout three continents. As of September 2022, their impressive portfolio included 2.7 million acres divided into two US regions – the South and Pacific Northwest – plus 417,000 acres in New Zealand. These forests provide various vital resources for dozens of industries worldwide. Not only does this yield incredible economic and environmental benefits. But it also demonstrates Rayonier’s powerful dedication to responsible forestry management practices.
Rayonier’s third-quarter results proved to be a mixed bag. Adjusted EPS came in higher than expected. But revenue fell significantly below expectations. Despite these challenges, the company is looking to deliver full-year guidance of adjusted EBITDA of over $175 million and pare down debt to o $725 million. This is encouraging news, particularly amid the pandemic that has impacted virtually all businesses globally. Rayonier remains well-positioned to deliver favorable results as we move into 2023. Thus, this Rayonier is definitely among the best REITs to buy.
Sabra Health Care REIT (SBRA)
Sabra Health Care REIT (NASDAQ:SBRA) has been a bright spot in the markets this year, especially when it comes to REITs. It is delivering strong performance even amidst market volatility and recessionary fears. This vast network houses more than 43,100 beds. And provides Sabra with a steady stream of income that is highly immune to traditional economic swings.
Investing can be tricky, as markets often experience highs and lows. Sabra Health Care REIT is an appealing option for those looking to manage their risk while still achieving modest returns. This organization focuses on the healthcare sector, which provides consistent cash flow independent of the state of the markets. In addition, this company benefits from America’s aging population. The aging population in the U.S. is set to rise from 52 million in 2018 to 95 million by 2060. Therefore, Sabra looks like a safe bet moving forward – thanks to its defensive characteristics and the growing need for healthcare products and services in the United States.
However, the stock is down this year. Sabra Health Care REIT missed earnings estimates in the third quarter. Investors are in an unforgiving mood right now. So, the results underperformed. And with its peers beating analyst estimates, the REIT found itself in a tricky situation. However, we will eventually see recovery in both the skilled and senior housing asset classes.
Regarding the dividend, Sabra Health Care stands a class apart from other best REITs to buy. At 9.52%, the yield is incredibly juicy, and few companies can match it.
On the publication date, Faizan Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
