2 Retail REITs Yielding 4-6% To Load Up On In August

Retail real estate investment trusts (REITs) specialize in owning and managing retail properties, including shopping centers, malls, strip malls and other retail spaces.

Retail REITs generate revenue by leasing space to retailers. As with all REITs, they are required to distribute a significant portion of their income to shareholders in the form of dividends, making them a popular choice for investors seeking income.

If you're interested in gaining exposure to retail real estate, here are two REITs you could buy today.

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Retail Opportunity Investments Corp.

Retail Opportunity Investments Corp. ROIC is the largest grocery-anchored shopping center REIT focused exclusively on the West Coast, managing a portfolio that comprises 94 shopping centers containing approximately 10.7 million square feet. Its major markets include Seattle, Portland, Los Angeles, San Diego, Orange County, and the San Francisco Bay.

ROIC currently pays a quarterly dividend of $0.15 per share, equating to an annualized dividend of $0.60 per share. At the time of this writing, this gives its stock a yield of about 4%.

ROIC is also a reliable dividend payer. It has maintained its current quarterly dividend rate since September 2022, and its stable cash flow could allow it to continue for the foreseeable future.

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Getty Realty 

Getty Realty GTY owns and manages convenience, automotive, and other single-tenant retail real estate. As of June 30, its portfolio comprises 1,124 properties across 42 states, including convenience stores, express tunnel car washes, auto service centers and drive-thru quick-service restaurants.

Getty Realty currently pays a quarterly dividend of $0.45 per share, equating to an annualized dividend of $1.80 per share, which gives its stock a yield of about 6% at the time of this writing.

In addition to a high yield, Getty Realty offers investors dividend growth. It has raised its annual dividend payment for 11 consecutive years, including a compound annual growth rate of 5.2% from 2019 to 2023. Its 4.7% hike last October has it on track for 2024 to mark the 12th consecutive year with an increase.

Better Yields Than Some REITs?

The current high-interest-rate environment has created an incredible opportunity for income-seeking investors to earn massive yields, but not through REITs.

Arrived Homes, the Jeff Bezos-backed investment platform has launched its Private Credit Fund, which provides access to a pool of short-term loans backed by residential real estate with a target 7% to 9% net annual yield paid to investors monthly. It paid 8.1% in July. The best part? Unlike other private credit funds, this one has a minimum investment of only $100. 

As long-term rates go down and short-term rates stay high, there’s a unique chance to invest in fix & flip loans before yields drop. Check out Benzinga's favorite high-yield offerings. 

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