2 Industrial REITs to Buy for Income in 2024

Industrial real estate investment trusts (REITs) own and manage income-generating industrial properties, such as warehouses, distribution centers, logistics facilities, and manufacturing plants. Industrial REITs generate income by leasing the properties.

Investors in industrial REITs can benefit from the demand for space in the logistics and manufacturing sectors. The growth of e-commerce and the need for efficient supply chain management have contributed to the growth of the space in recent years. Similar to other REITs, industrial REITs are required to distribute a significant portion of their income to shareholders in the form of dividends.

If you're interested in investing in industrial REITs, here are two you could buy today.

Plymouth Industrial REIT

Plymouth Industrial REIT PLYM owns, operates, and manages a portfolio of 211 single and multi-tenant industrial properties totaling over 34 million square feet. Nearly all of its properties reside inside the "Golden Triangle" region of the United States, which contains over 70% of the U.S. population. It's also worth noting that it counts FedEx FDX as one of its ten largest tenants.

Plymouth currently pays a quarterly dividend of $0.225 per share, equating to $0.90 per share annually, giving its stock a yield of about 4.05% at the time of this writing. It has also raised its annual dividend each of the last three years following a 46.7% reduction to its quarterly rate in 2020.

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Rexford Industrial Realty

Rexford Industrial Realty REXR calls itself the largest pure-play U.S.-focused industrial REIT as 100% of its portfolio is located in the U.S. and it owns 100% of the 371 properties in its portfolio, which total about 45 million square feet.

Rexford currently pays a quarterly dividend of $0.38 per share, equating to $1.52 per share annually, giving it a yield of about 2.8% at the time of this writing. While its yield may not be very high, the company has raised its annual dividend every year since its 2013 initial public offering, making it a quality dividend-growth stock.

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