As the dream of homeownership becomes more elusive for Gen Z and Millennials in the current real estate landscape, savvy investors are turning their attention to alternative avenues. Apartment real estate investment trusts (REITs) emerge as a strategic option, providing a gateway to real estate exposure and wealth accumulation.
NexPoint Residential Trust, Inc.
NexPoint Residential Trust NXRT owns 39 multifamily properties consisting of 14,485 units across 11 markets in seven Southeastern and Southwestern states, including Charlotte, Dallas-Fort Worth, Houston, Las Vegas, Orlando, Phoenix, Raleigh, and Tampa.
NexPoint currently pays a quarterly dividend of $0.46242 per share, equating to an annualized dividend of about $1.85 per share and giving it a yield of about 5.8% today. The company has also raised its annual dividend for eight consecutive years, including a 10.1% increase last October, making it one of the most attractive yield and growth opportunities for income investors today.
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AvalonBay Communities
AvalonBay Communities AVB owns or has ownership interests in 299 apartment communities containing 90,669 apartment homes across 12 states and the District of Columbia, including 18 communities under development.
AvalonBay currently pays a quarterly dividend of $1.70 per share, equating to an annualized dividend of $6.80 per share and giving it a yield of about 3.9% at today's levels. The company has also raised its annual dividend 11 times in the last 13 years, including a 3% increase last month, making it qualify as both a high-yield and dividend-growth stock.
Arrived Homes
Investors can also gain exposure to the benefits of homeownership through the crowdfunding platform Arrived Homes.
Arrived is an alternative investment platform, backed by Jeff Bezos and Dara Khosrowshahi, that allows individuals to easily invest in real estate by purchasing shares of rental properties. Investors on the platform earn passive income through the rental revenue while waiting for the properties they invest in to appreciate in value over time.
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