Most dividend investors are familiar with the well-known subsectors of real estate investment trusts (REITs), such as office, hotel and healthcare. It’s pretty clear the type of properties these REITs invest in.
But some REITs invest in properties that don’t fall into the usual type of structured categories. These are known as specialized REITs, which own and operate a blend of properties that are unique. According to the National Association of Real Estate Investment Trusts (Nareit), there are nine specialized REITs, and examples of properties owned include cinemas, casinos, farmland and outdoor advertising sites.
Specialized REITs don’t get as much financial media attention as other REITs. But one advantage of specialized REITs is that they have less competition. Another advantage is the ability to reduce economic risks by diversifying their property types.
Take a look at three of the best-performing specialized REITs over the past four weeks:
Outfront Media Inc. OUT is a New York-based specialty REIT with 500,000 advertising displays across 70 U.S. markets. It uses billboards, transit and mobile assets to showcase its clients. Outfront Media’s website claims its media reaches 70% of all Americans on a weekly basis.
Outfront Media recently announced it will report its fourth-quarter and full-year 2022 operating results on Feb. 22. Outfront Media pays a quarterly dividend of $0.30 per share and the annual dividend of $1.20 per share yields 5.7%.
Despite no recent news to propel the stock, Outfront Media had a total return over the last four weeks of 17.43%.
EPR Properties EPR is a diversified experiential REIT that owns and operates 358 movie theater chains, amusement parks, resorts and other recreational venues.
On Jan. 18, EPR Properties announced a strategic partnership with Colorado-based Gravity Haus in which EPR Properties will provide $64.5 million of debt refinancing for six properties Gravity Haus owns. EPR Properties also has agreed to finance future Gravity Haus acquisitions.
On Jan. 9, Raymond James analyst RJ Milligan maintained a Strong Buy rating on EPR Properties, while lowering its price target from $48 to $45.
Over the past four weeks, EPR Properties has had a total return of 15.68%. With its strong price rise over that time frame, EPR Properties has a potential increase of 3.4% from its recent closing price of $42.69.
EPR Properties also announced that its monthly dividend of $0.275 would be payable on Feb. 15 to shareholders of record on Jan. 31. The annual dividend of $3.30 per share presently yields 7.73%.
EPR Properties will report fourth-quarter and year-end 2022 operating results after the market closes on Feb. 23.
Lamar Advertising Co. LAMR is a Baton Rouge, Louisiana-based outdoor advertising company that owns and leases 356,000 displays, including digital and print billboards, interstate logos and airport advertising formats, across the U.S. and Canada.
Lamar Advertising pays a quarterly dividend of $1.20 per share, and its annual dividend of $4.80 per share has a present yield of 4.5%. It is slated to announce its fourth-quarter operating results before the market opens on Feb. 24. Lamar Advertising has beaten analysts’ estimates in each of the past four quarters.
Lamar Advertising, like rival Outfront Media, has performed well recently. Over the past four weeks, Lamar Advertising had a total return of 13.8%.
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