Earn Passive Income From The Booming E-Commerce Industry With These 3 REITs

As e-commerce continues to reshape the global retail landscape, the demand for logistics and distribution centers has surged. Industrial real estate investment trusts (REITs), which specialize in owning and managing warehouses, fulfillment centers, and distribution hubs, are positioned to be the top beneficiaries of the trend.

In addition to their growth potential, REITs offer great yields. Like all REITs, industrial REITs must distribute a significant portion of their income to shareholders as dividends.

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If you're interested in investing in industrial REITs, here are three you could consider.

Prologis

Prologis Inc. PLD is the world's largest REIT. As of June 30, its portfolio comprised ownership interests in over 5,500 industrial properties across 19 countries on four continents, containing approximately 1.2 billion square feet. Its properties include distribution facilities, logistics centers, and warehouses.

Prologis currently pays a quarterly dividend of $0.96 per share, which equates to an annualized dividend of $3.84 per share and gives its stock a yield of about 3.1% at the time of this writing.

In addition to its high yield, Prologis offers dividend growth. It has raised its annual dividend payment for 10 consecutive years, and its 10% hike in February puts it on pace for 2024 to mark the 11th consecutive year with an increase.

Rexford Industrial Realty

Rexford Industrial Realty REXR owns and manages industrial properties in Southern California. As of July 16, its portfolio consisted of 422 properties, 722 buildings, and approximately 50 million square feet.

Rexford currently pays a quarterly dividend of $0.4175 per share, which equates to an annualized dividend of $1.67 per share and gives its stock a yield of about 3.3% at the time of this writing.

In addition to offering investors a high yield, Rexford offers dividend growth. It has raised its annual dividend payment each of the last 10 years, and its 10% hike in February puts it on pace for 2024, marking the 11th consecutive year with an increase.

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Terreno Realty Corporation

Terreno Realty Corporation TRNO owns and manages industrial properties in six major coastal markets: Seattle, the San Francisco Bay Area, Los Angeles, Miami, Washington D.C. and Northern New Jersey/New York City. As of June 30, its portfolio comprised 292 buildings, excluding nine properties under development or redevelopment, containing approximately 18.1 million square feet.

Terreno currently pays a quarterly dividend of $0.49 per share, which equates to an annualized dividend of $1.96 per share and gives its stock a yield of about 2.9% at the time of this writing.

Like Rexford, Terreno has an impressive track record of dividend growth. It has raised its annual dividend payment every year since initiating its dividend in 2011, with a compound annual growth rate of 12.7% since then. Its recent hikes, including its 8.9% increase earlier this month, have it on pace for 2024 to mark the 13th 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.