Industrial real estate investment trusts (REITs) specialize in owning and managing industrial properties such as warehouses, distribution centers and factories. REITs offer exposure to the industrial real estate sector, typically generating revenue through leasing properties to tenants in manufacturing, logistics and similar industries.
The appeal of industrial REITs lies in their potential for stable rental income and property value appreciation. As publicly traded entities, they provide liquidity and accessibility to individual investors, unlike direct real estate investments. They also reflect broader economic and industrial trends, making them a top choice for diversified portfolios.
While industrial REITs are appealing for many reasons, there's a question to answer: Which ones should you invest in?
There's no right or wrong answer, but dividend yield is one of the most telling data points. Here are three industrial REITs with the highest yields.
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Innovative Industrial Properties Inc.
Innovative Industrial Properties Inc. IIPR currently has the highest dividend yield of all industrial REITs at 7.35%. The company specializes in the acquisition, ownership and management of industrial properties leased to state-licensed operators in the regulated cannabis industry.
Global Self Storage Inc.
Global Self Storage Inc. SELF has a dividend yield of 6.3%. With a market cap of 51.15 million, it's not the largest player in the REIT sector, but it offers a notable yield in the niche self-storage market.
The company focuses on acquiring, owning and managing self-storage facilities, primarily in the United States, catering to both personal and business storage needs.
National Storage Affiliates Trust
National Storage Affiliates Trust NSA has a market cap of $5.46 billion and a dividend yield of 5.59%. The company has a significant market presence and operates a large portfolio of self-storage properties across the United States.
As you compare industrial REITs, focus on yield and a history of stable dividend payouts. When combined with overall portfolio quality and financial health, you have the information you need to make informed investing decisions.
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