Triple-Net Commercial Real Estate Dividends

While there is still a glut of poor performing commercial real estate on the market these days, those who invest in triple-net properties are enjoying better times. Triple-net leases are long-term contracts in which the tenants take responsibility for maintenance, taxes and insurance on the property, leaving the owners off the hook for these expenses. Typically, these are the biggest operating costs associated with real estate. In exchange, the property owners get increased EBITDA and healthy cash flows. Here are two REITs within the sector. Ventas VTR is a REIT that focuses on the health care industry, owning hospitals, nursing homes and doctors across the country. The triple-net leaser recently raised its dividend and is now yielding 4.6 percent. National Retail Properties NNN focuses on the retail side of triple-net leasing. It owns 1014 different properties leased long term to companies such as Best Buy BBY and CVS CVS. The company has consistently raised their dividend and currently yields 6.6 percent.