Top 3 REITs

Boston Properties (BXP)

Boston Properties is the largest publicly traded developer, owner and manager of Class A office properties — high-quality buildings that command high rents — in the U.S.

The company has a portfolio of 201 properties totaling 52.8 million square feet. Boston Properties generates long-term recurring rental revenue as its portfolio has a weighted average remaining lease term of 7.8 years.

Management maintains a strong focus on gateway regions with long-term rent growth prospects. Its top three markets by net operating income are Boston (34%), New York (28%) and San Francisco (20%).

Paying quarterly dividends of 98 cents per share, the REIT currently offers an annual yield of 3.3%.

Last week, Mizuho analyst Vikram Malhotra upgraded Boston Properties from ‘neutral’ to ‘buy,’ naming the stock his top pick in the office REIT space. His price target of $135 is roughly 10% above current levels.

Prologis (PLD)

Warehouses may not seem like exciting pieces of property, but investors of Prologis aren’t complaining. The warehouse-focused REIT has delivered a total return — stock price appreciation plus dividends earned — of more than 200% over the past five years.

Logistics facilities like warehouses are critical to our economy, particularly as consumers have embraced online shopping.

Prologis is a leading player in the field. It has investments in 4,675 logistics facilities that total nearly 1 billion square feet. They are leased to 5,800 customers across two major categories: business-to-business and retail/online fulfillment.

The REIT’s top tenants include names like Amazon, FedEx, DHL and UPS — companies that are firmly entrenched during this era of e-commerce.

Prologis pays quarterly dividends of 79 cents per share, giving it an annual yield of 1.9%.

On Monday, Raymond James analyst William Crow reiterated a ‘strong buy’ rating on Prologis, noting the sector’s potential to deliver free cash flow and increasing dividends. He also raised his price target on the shares to $190 — around 14% above where the stock sits today.

Public Storage (PSA)

Public Storage is a leading player in the self-storage business. It owns more than 2,800 self-storage facilities in 39 states totaling 200 million rentable square feet.

The company has been around for 50 years, and it’s still growing. From 2010 to 2021, the REIT’s same-store net operating income increased by 80%.

The business has served income investors well, providing dividends every single quarter since 1981. Today, the REIT has a quarterly dividend rate of $2.00 per share, translating to an annual yield of just over 2%.

The stock has also picked up momentum, gaining about 45% over the past 12 months.

More returns could be on the horizon. JPMorgan analyst Michael Mueller recently raised his price target on Public Storage from $385 to $434 while maintaining an ‘overweight’ rating. With the stock trading just below $400 right now, Mueller’s target implies potential upside of almost 10%.

Pour your portfolio a glass of recession resistance

Fine wine is a sweet comfort in any situation — and now it can make your investment portfolio a little more comfortable, too.

Ownership in real assets like fine wine could be the diversification you need to protect your portfolio against the volatile effects of inflation and recession. High-net-worth investors have kept this secret to themselves for too long.

Now a platform called Vinovest helps everyday buyers invest in fine wines — no sommelier certification required.

Vinovest automatically selects the best wines for your portfolio based on your goals, and it tells you the best times to sell to get the best value for your wine.

About the Author

Jing Pan

Jing Pan

Investment Reporter

Jing is an investment reporter for MoneyWise. Prior to joining the team, he was a research analyst and editor at one of the leading financial publishing companies in North America. An avid advocate of investing for passive income, he wrote a monthly dividend stock newsletter for the better half of the past decade. Jing holds a Master’s Degree in Economics and an Honours Bachelor of Science Degree, both from the University of Toronto.

What to Read Next

Disclaimer

The content provided on MoneyWise is information to help users become financially literate. It is neither tax nor legal advice, is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. Tax, investment and all other decisions should be made, as appropriate, only with guidance from a qualified professional. We make no representation or warranty of any kind, either express or implied, with respect to the data provided, the timeliness thereof, the results to be obtained by the use thereof or any other matter.