Empire State Realty OP (ARCA:FISK)
Empire State Realty OP LP is the operating partner of Empire State Realty Inc. The company along with its partner manages, operates, acquires and repositions properties in Manhattan and the greater New York metropolitan area. The firm operates in two segments, Real Estate and Observatory. Through the Real Estate segment, it offers services related to the ownership, management, operation, acquisition, repositioning and disposition of its real estate assets. Under the Observatory segment, it operates the two observatories of the Empire State Building. The company generates maximum revenue from the Real Estate segment.
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| Open10.960 | Close10.960 |
| Vol / Avg.200.000 / 1.431K | Mkt Cap2.973B |
| Day Range10.960 - 10.960 | 52 Wk Range8.080 - 11.390 |
Service Properties Trust (NASDAQ:SVC)
Service Properties Trust is a real estate investment trust that owns hotel properties. These properties are located primarily in the United States, along with Canada and Puerto Rico. The company operates through its hotel investment unit and net lease investments. The firm derives the majority of its revenue from the hotel real estate investments unit. The hotels are distinguished between their service levels, which include full service, select service, and extended stay; and chain scale, which includes luxury, upper upscale, upscale, upper midscale, and midscale. Most hotels are extended stay or upscale. Some of the major hotel brands include Courtyard by Marriott, Royal Sonesta, Crowne Plaza Hotels & Resorts, and Hyatt Place.
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| Open2.700 | Close2.770 |
| Vol / Avg.1.568M / 1.776M | Mkt Cap478.281M |
| Day Range2.680 - 2.810 | 52 Wk Range2.470 - 8.720 |
Equity Lifestyle Props (NYSE:ELS)
Equity Lifestyle Properties Inc is a real estate investment trust primarily engaged in the ownership and operation of manufactured home communities and recreational vehicle (RV) campgrounds throughout the US. The vast majority of the company’s real estate portfolio is comprised of sites located near bodies of water in Florida, the Northeastern region of the US, Arizona, and California. Equity Lifestyle derives nearly all of its income in the form of rental revenue from its properties. This income is pretty evenly split between its community sites and resort sites in the Florida, Northeastern US, Arizona, and California markets. Equity Lifestyle’s site offerings mainly attract retirees, vacationing families, and second homeowners who lease on an annual basis.
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| Open71.210 | Close70.940 |
| Vol / Avg.1.095M / 1.200M | Mkt Cap13.553B |
| Day Range70.460 - 71.210 | 52 Wk Range59.820 - 76.600 |
Vornado Realty (NYSE:VNO)
Vornado Realty Trust is a real estate company with a collection of premier assets in the U.S. It is focused on growing its dominant positions in New York City commercial spaces and Manhattan high street retail. Vornado Realty Trust owns and operates 20 million square feet of prime office properties.
The real estate stock has a market cap of $7 billion and has an EPS of $0.28. It has an annual dividend yield of $2.12 per share. Vornado Realty Trust is a 52-week low of $27.64 and a 52-week high of $68.68. It has high liquidity and trades more than 2 million shares per day. Vornado Realty Trust generated revenue of $1.9 billion in 2019.
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| Open41.730 | Close42.420 |
| Vol / Avg.1.241M / 1.868M | Mkt Cap8.080B |
| Day Range41.610 - 42.790 | 52 Wk Range21.160 - 46.630 |
EPR Props (NYSE:EPR)
EPR Properties is a specialty REIT that primarily invests in the entertainment sector. The company owns 179 theaters, 55 “eat-and-play” establishments, 13 ski properties and resorts, 3 culture-based theme parks and much more. The REIT also invests in private schools and other educational ventures.
EPR is a solid choice for any investor who wants to add a wide exposure to the entertainment real estate market. Over the past year, EPR has beat its quarterly earnings estimates by an average of 2.98%, and its holdings are well distributed throughout the U.S. and Canada.
While its dividend yield is cautiously high now (at just under 20%) EPR still remains a solid choice for anyone interested in adding REIT with a long history in entertainment to their portfolio.
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| Open44.980 | Close45.020 |
| Vol / Avg.455.006K / 471.870K | Mkt Cap3.409B |
| Day Range44.910 - 45.320 | 52 Wk Range39.655 - 50.260 |
Have you ever dreamed of investing in a theme park, apartment complex or hospital? A real estate investment trust (REIT) diversified stock can allow you to invest in multimillion-dollar ventures for less than $40 per share. REIT diversified stocks give you a higher level of protection by exposing you to multiple real estate markets or ventures with a single purchase.
Which REITs are worth your money, and how can you tell which REITs will continue to pay high dividends? Today, we’ll cover the basics of REIT dividend investing. We’ll also introduce you to a few REIT diversified stocks that currently have investors talking.
Quick Look at the Best Diversified Stocks:
- Empire State Realty OP LP
- Service Properties Trust
- Equity Lifestyle Properties Inc
- Vornado Realty Trust
- EPR Properties
Overview: REIT Diversified Stocks
An investment trust such as a REIT is a special classification of businesses that invest in real estate and real estate assets. To be classified as a REIT, a business must invest at least 75% of its assets in real estate assets. It must also agree to pay out at least 90% of its taxable income back to its shareholders in the form of dividends. In exchange for meeting the REIT classification, the business enjoys generous corporate tax advantages.
A diversified REIT is one that invests in more than 1 type of property. A diversified REIT might invest some of its capital in commercial spaces, residential real estate, healthcare properties and more. Some REITs may also diversify by location — for example, purchasing commercial properties in multiple cities across the country. Each diversified REIT allocates its resources with its own unique distribution.
Investing in diversified REITs is a great way to take advantage of the higher dividends offered without putting all of your financial eggs in 1 single real estate sector.
Real Estate Investment Brokers
Like investing in any other type of stock, you’ll need to open an account with an online broker before you can get started buying REIT diversified shares. Here are a few of our favorite brokers offering online access to the markets and low-cost trading.
- Best For:Active and Global TradersVIEW PROS & CONS:Securely through Interactive Brokers’ website
- Best For:Global Broker for Short SellingVIEW PROS & CONS:securely through TradeZero's website
Features to Look for in a REIT Diversified Stock
There are dozens of REIT diversified stocks on the major American markets. Unfortunately, not every REIT is worth investing in. Let’s take a look at a few key features you should look for before you invest.
- High earnings per share: One of the first factors you should consider when you compare diversified REITs is each offering’s earnings per share (EPS). A higher EPS means that the money is managing its finances well, and that it has more money coming in through its properties than it is spending on maintenance and upkeep.
- A solid diversification strategy: Every REIT diversified stock has its own definition of what “diversification” means. Some REITs diversify by investing in multiple types of properties. Some diversify by investing in multiple states or cities and some REITs diversify by investing in different parts of a singular city (common in large cities like New York City and Los Angeles). Some large REITs use all 3 of these diversification strategies.
Before you invest in a REIT, take a look at its portfolio to make sure that it has a substantial enough level of diversification to mitigate risk. If you’re planning on investing in only 1 REIT diversified stock, make sure it has multiple levels of diversification.
- An appropriate dividend yield: Most investors are attracted to REITs because they pay out higher-than-average dividends. With so many stocks under $10 in the REIT sector, it can be tempting to only invest with ones that pay out the most in dividends. However, high dividends aren’t always the benchmark of a well-performing REIT.
Instead of looking at the dividend amount per-dollar, look at each stock’s dividend yield. The dividend yield is a ratio that compares the price of the stock to the amount that it pays out in dividends.
REITs tend to have higher dividend yields, but be aware that high dividend yields can be a trap to lure investors in before suddenly dropping the dividend. As a general rule, you should be wary of any stocks that have dividend yields above 10%.
Diversifying Your Real Estate Holdings
REIT diversified stocks can add a level of safety to any portfolio. If you’re interested in adding even more diversification to your real estate investments, consider purchasing a REIT exchange-traded fund (ETF) as well. REIT ETFs bundle multiple REITs in an individual sector, giving you more diversification without purchasing individual stocks.
No matter what you decide to invest in, remember to do your research and keep tabs on how your portfolio is moving.
What is a diversified REIT?
A diversified REIT is a REIT that invests in more than one type of property.
Are REITS good investments?
If you want to diversify your portfolio, a REIT is a great addition.
Are REITS risky?
You can reduce risk by investing in a diversified REIT because it spreads the risk across multiple assets.
About Sarah Horvath
Sarah Horvath is a seasoned financial writer with a specialization in investing content. With a keen eye for market trends and a deep understanding of investment strategies, Sarah delivers insightful and informative articles tailored to investors. Her dedication to providing valuable content empowers readers to make informed decisions in the dynamic world of finance. Sarah’s expertise extends across various investment vehicles, including stocks, bonds, cryptocurrencies, and real estate. Whether analyzing market movements, evaluating investment opportunities, or demystifying complex financial concepts, Sarah’s writing is characterized by clarity, accuracy, and actionable insights. Through her engaging content, Sarah strives to educate and guide investors on their journey towards financial success.