These 5 REITs Under $30 Could Put Money In Your Pocket

It's often easy to find great stocks that perform well, but such issues can be expensive, making it challenging for the average investor to buy a substantial number of shares. One advantage of purchasing at least 100 shares is that an investor can write covered calls against the position, providing an opportunity for additional income each month.

Fortunately, with the difficulties that real estate investment trusts (REITs) have encountered over the past three years, finding top-quality REITs that aren't too expensive is still possible. These five REITs all trade below $30 per share and with September interest rate cuts expected, each of them could put money in your pocket in the coming year. Take a look: 

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Tanger

Tanger Inc. SKT, formerly Tanger Factory Outlet Centers Inc., is a Greensboro, NC-based retail REIT that owns, co-owns, or manages 40 indoor shopping centers and outdoor factory outlet malls with 15.6 million square feet and over 3,000 stores across 20 states and Canada. Tanger Factory Outlet Centers was founded in 1981 and had its IPO in May 1993. Tanger's occupancy rate at the end of Q2 2024 was 96.5%. 

On Aug. 1, Tanger delivered a solid second-quarter earnings report. FFO of $0.53 per share beat the consensus estimate of $0.52 and revenue of $128.956 million beat the estimate of $122.216 million and Q2 2023 revenue of $110.641 million topped. 

Tanger's dividend yield of 3.89% is below its 5-year average of 7.26%, but with a payout ratio of 51.58%, there is plenty of room for further dividend hikes. It has a solid history of dividend growth.   

Cousins Properties 

Cousins Properties Inc. CUZ is an Atlanta, GA-based office REIT, founded in 1958, with a present portfolio of 19.1 million square feet of Class A office towers located in high-growth markets of the Sun Belt.

 Most of Cousins' portfolio consists of newer office buildings, with an average construction year of 2004. Its buildings include upscale amenities like exercise facilities, meeting rooms, wellness centers and cafes. The upgrades allow it to command rents approximately 24% higher than the Class A Average in its core markets of Atlanta, Austin, Charlotte, Dallas, Phoenix and Tampa. Its tenants are high-grade and diversified by industry. Its June 2024 occupancy rate was 90.8%, just slightly below the 91.1% pre-COVID occupancy rate. 

On July 25, Cousins Properties reported its Q2 earnings. FFO of $0.68 beat the forecast of $0.66 and topped its FFO of $0.65 in Q2 2023. Revenue of $212.978 million beat the estimate of $209.372 million and its Q2 2023 revenue of $204.320 million. 

Cousins Properties also raised the midpoint of its full-year 2024 FFO guidance from $2.60-$2.67 to $2.63-$2.68 per share. The street estimate is for $2.65. 

On July 30, Barclays analyst Anthony Powell maintained an Overweight position on Cousins Properties and raised the price target 20% from $25 to $30. 

Cousins Properties' total return year-to-date is 14.95%. 

Four Corners Property Trust   

Four Corners Property Trust Inc. FCPT is a retail REIT that began in 2015 as a spinoff from Darden Restaurants Inc. DRI with 418 casual dining restaurants. In only nine years, it has expanded to own 1,132 properties with 154 brands across 47 states and has diversified into fast food restaurants, auto service outlets, and medical and dental centers. Its most recent acquisition was an Illinois Taco Bell for $1.7 million in late July. Four Corners' 99.6% occupancy rate is excellent.

On July 31, Four Corners Property reported quarterly earnings of $0.43 per share, beating the analyst consensus estimate of $0.42. Revenue of $66.48 million topped the forecast of $65.30 million and increased from $60.69 million in the same period last year.

Four Corners' dividend yield is presently 5.10%.   

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Kite Realty Group 

Kite Realty Group Trust KRG is an Indianapolis-based retail REIT with 178 open-air and mixed-use properties from Vermont to California, comprising 28 million square feet of gross leasable space. Its strip malls are mostly grocery store-anchored, and tenants include CVS, Fresh Market, Best Buy, Burlington Coat Factory, Ross Stores, and Costco. Kite Realty had its IPO in 2004.

On July 30, Kite Realty Group reported its Q2 earnings. FFO of $0.53 per share beat the consensus estimate of $0.50. revenue of $212.434 million beat the forecast of $207.534 million and topped Q2 2023 revenue of $208.759 million. 

Analysts have been very positive on Kite Realty Group recently. On Aug. 16, Raymond James analyst RJ Milligan upgraded Kite Realty Group from Market Perform to Outperform and announced a $28 price target. On Aug. 20, KeyBanc analyst Todd Thomas maintained Kite Realty Group at Overweight and raised the price target from $25 to $28.

Kimco Realty Corp 

Kimco Realty Corp. KIM is a retail REIT based in Jericho, NY. It owns and operates 567 open-air, grocery store-anchored and non-anchored properties with 101 million square feet of leasable space and ground leases. Kimco Realty was founded in 1958, is a member of the S&P 500, and has been publicly traded on the New York Stock Exchange (NYSE) since 1991. 

Kimco Realty's lease terms range from less than five years to 30 years or longer. Second-quarter occupancy was 96.2%. 

Analysts have been mixed on Kimco recently. On Aug. 16, Raymond James analyst RJ Milligan upgraded Kimco two levels from Market Perform to Strong Buy and announced a $25 price target. On Aug. 19, Mizuho analyst Haendel St. Juste downgraded Kimco from Outperform to Neutral but increased the price target from $20 to $23.

Kimco Realty's dividend yield is 4.30%. The payout ratio is quite modest at 59.6% and should allow further dividend increases.

Looking For Higher-Yield Opportunities?

The current high-interest-rate environment has created an incredible opportunity for income-seeking investors to earn massive yields, but not through dividend stocks… Certain private market real estate investments are giving retail investors the opportunity to capitalize on these high-yield opportunities and Benzinga has identified some of the most attractive options for you to consider. 

For instance, the Ascent Income Fund from EquityMultiple targets stable income from senior commercial real estate debt positions and has a historical distribution yield of 12.1% backed by real assets. With payment priority and flexible liquidity options, the Ascent Income Fund is a cornerstone investment vehicle for income-focused investors. First-time investors with EquityMultiple can now invest in the Ascent Income Fund with a reduced minimum of just $5,000. Benzinga Readers: Earn a 1% return boost on your first EquityMultiple investment when you sign up here (accredited investors only).

Don't miss out on this opportunity to take advantage of high-yield investments while rates are high. Check out Benzinga's favorite high-yield offerings.