Latest news with #REITs
Globe and Mail
16 hours ago
- Business
- Globe and Mail
2 Top Dividend Stocks Yielding 5% or More to Buy Right Now for Passive Income
Key Points Realty Income is a high dividend payer with a long track record. Vici Properties is perhaps the safest way to bet on Las Vegas. 10 stocks we like better than Realty Income › Over time, dividends have become a smaller and smaller part of the stock market's total return, with the S&P 500 boasting an average yield of just 1.22% today, compared to 7.44% in 1950. That said, some companies still offer fat, consistently growing payouts, just like the good old days. Let's explore some reasons why Realty Income (NYSE: O) and Vici Properties (NYSE: VICI) could make fantastic long-term picks. Realty Income Corporation Real estate investment trusts (REITs) are a special type of investment that allows retail investors to benefit from the income generated from commercial real estate. But they aren't all the same. Realty Income stands out from the alternatives because of its track record of success, monthly payouts, and unique, risk-minimizing business model. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » Since going public in 1994, Realty Income has increased its dividend for 30 consecutive years. The company funds the payout with the cash generated from its portfolio of 15,600 properties spread across North America and Europe. Realty Income's business model is relatively safe because of its use of triple-net leases, which mean the tenant is responsible for building-level operating costs like tax and insurance. It also tends to focus on recession-proof tenants like grocery stores, dollar stores, and auto repair shops, although many flashier clients like casinos and IT data centers have been sprinkled into the mix to help power growth. While macroeconomic threats like high interest rates have caused Realty Income's shares to underperform in recent years, they give investors an opportunity to buy the stock for cheap and lock in a relatively high yield of 5.55% at the time of writing, which is far above the market average. Vici Properties While Realty Income features a long track record and diversification into many different industries, Vici Properties offers more concentrated exposure. The company was formed in 2017 from the spinoff of real estate assets formerly owned by Caesars Entertainment Company during its bankruptcy restructuring. It has since evolved to become a leading entertainment-focused REIT, with 93 properties across North America. While entertainment is a consumer discretionary expenditure that may drop during economic downturns, Vici manages this risk with triple-net leases and high-quality tenants like Caesars and MGM Resorts, which have stable businesses and are deeply tied to their locations. The company has often relied on leaseback sales, which are when it buys an asset (such as a Casino) from a client who needs liquidity or to free up capital for elsewhere, only to rent it back to them, giving Vici access to stable, growing revenue. Vici also offers excellent growth potential as it expands into different asset types, such as golf courses, and potentially redevelops its 33 acres of undeveloped land located near the Las Vegas Strip. With a dividend yield of 5.15%, Vici is an excellent pick for investors who prioritize passive income. But don't overlook its stock price growth potential. Shares have risen around 60% over the last five years, with a 16% rally so far in 2025. The company probably won't stay this cheap for long. Which dividend stock is right for you? Realty Income and Vici Properties are both great picks for investors who prioritize sustainable passive income for the long term. If you could only pick one, the best choice will depend on your investment goals. Realty Income is better for investors who are willing to sacrifice a little growth potential for stability. But while Vici Properties doesn't have as long a track record, it offers more room for capital appreciation. Should you invest $1,000 in Realty Income right now? Before you buy stock in Realty Income, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Realty Income wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $636,628!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,063,471!* Now, it's worth noting Stock Advisor's total average return is 1,041% — a market-crushing outperformance compared to 183% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 28, 2025
Yahoo
a day ago
- Business
- Yahoo
Investors in the housing market: What you need to know
There have been a lot of headlines about the number of investors, both large and small, snapping up homes as investments. Kinloch Partners co-founder & CEO Bruce McNeilage explains who these investors are and why so many are getting into housing. To watch more expert insights and analysis on the latest market action, check out more Asking for a Trend here. When we talk about these investors moving in, what kind of investors are we talking about, Bruce? Are we talking about relatively are these smaller investors, or these private equity players? Who are they? Sure, they're all the above, right? They're small mom and pop investors. They're buying four and five houses here and there. They're mid-tier companies like us. We'd like to do another 100 to 200 houses by the end of the year. They're larger players, and then there are the ones in between. Now, family offices, sovereign wealth funds, the hedge funds, the REITs, everybody is coming into the market right now. There's been too much money on the sidelines, and we're really starting to see these builders benefit because they have a lot of excess inventory, and folks like us can come in, clean up their inventory here in the next few months, and really uh help them with their profits and buy up their inventory. So that's interesting, Bruce. So part of the trend here is its home builders have a lot of inventory. That's part of the the driver here. Yeah, absolutely. Mom and pops are having a tough time qualifying for mortgages, right? The interest rates are just too high in the last 52 weeks. You know, you look at Freddie Mac numbers, they've basically stayed the same. We're hovering just under 7%. People cannot afford mortgages right now. So the next best thing is to rent a brand new house. Well, who do you rent a brand new house from? The people that have bought one, or the people that have built one. And so we're really offering something that most people can't get, a brand new house, instead of buying it, you're renting it. And the smaller investor, Bruce, in particular, that this was really the trend the kind of journal pointed out here, is there a reason right now, Bruce, that smaller investors would be more active? Yeah, sure. So small investors can borrow money from credit unions. They can borrow against their 401k. They can do a lot of different things that larger investors aren't going to do. And when you see the the price of houses coming down, when you see the inventory come uh going up, and when you also see all these builder incentives, it really helps a small investor get in the game, so to speak, because they are getting these discounts from these builders. And is the business model there, Bruce, for the smaller investor? It's what, you move in, buy a home, make some modest renovations, rent it with the aim of of one day selling it. Is that the idea? Yeah, most people are looking at either buying a new house or what I call a used house and fixing it up. You cash flow it for a number of years, let's say three to five years. It goes up in value, and then you sell it. A lot of people are just in this for the capital gains. Some people are in it for the income and capital gains, but the name of the game is to have positive cash flow from day one and then sell it at a profit at the end. Is there are there advantages, Bruce, a smaller investor, relatively would have over a private equity player? Yeah, I think they can be nimble. I don't think they have the same rules. They certainly don't have investment committees. And so they can choose to buy a house, rent a house, sell a house, and they can pay what they want to pay. You know, again, they don't have a mandate from an investment committee. So if they want to buy something with a lower cap rate, if they want to buy something with a higher cap rate or something big, small, uh you know, older, uh newer, they can be as nimble as they want where the larger funds can't. They have mandates. You know, they have a buy box and uh and and they've got some restrictions, and we do too. I'm sure, Bruce, there are some folks who are watching this right now who think, well, hold on a second. Doesn't this trend, doesn't this thing that Bruce and Josh are talking about ultimately make it that much tougher for regular Americans, Bruce, to come in and bid and compete? Yeah, so you would think that, but what we're doing is we're not taking inventory out of the market. For us, we're building brand new houses, not taking inventory out of the market. And then these houses are available in the MLS. You know, you buy houses from the different large builders. Anybody can buy those houses today. It's just people are not. So investors are coming in, cleaning up this inventory, buying the houses, but quite frankly, they're available to everyone. It's just people can't afford them. So it's buying up the houses and making more stock available again, not to buy, but for people that can't buy but to rent.
Yahoo
2 days ago
- Business
- Yahoo
This Platform Makes It Easy to Own Rental Property Without Being a Landlord with as Little as $100
Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. Although skyscrapers may dominate the typical city skyline (and the imagination), the truth is that a large percentage of landlords in America are not REITs, but individuals who own less than 5 units. It's also true that a lot of Americans rent single-family homes. This, of course, raises the question; why do so many investment platforms focus on large commercial properties instead of single-family homes? After all, it's much easier for smaller investors to understand the mechanics of buying a single-family home and operating it as an investment property. It's also more affordable. The simple answer is money. Most real estate investment platforms focus on accredited investors and the best way to get them the kind of returns they expect is to buy large commercial properties. Arrived seeks to shift that paradigm by giving small, non-accredited investors the opportunity to buy shares of rental homes all over the country and get the benefits that real estate investing provides. Real estate is a diverse asset class with investment options that can fit any bank account when working with the right platform. How Does It Work? Arrived is run by a team of experienced real estate market and industry professionals who identify single-family homes with potential as rental properties and long-term upside. The main difference here is that while most real estate crowdfunding platforms focus on large multi-family or commercial properties, Arrived focuses on single-family homes. Once Arrived purchases a home, it turns the ownership of the property over to an individual LLC. The LLC sells individual "shares" to investors at a price of $10 per share, which is how the platform raises capital to renovate the properties and put them on the rental market. Investors can then buy 10 or more of these individual shares for as little as $100 until the funding goal for the property is met. It's important to note that investors who purchase shares will have to commit to the hold period, which varies with each individual property but is estimated to last between 5 to 7 years. Once those goals are met, Arrived teams up with a preselected management team in the area to handle the nuts and bolts of showing the property and collecting rents. After the property is rented, Arrived investors can earn income on the rent based on the number of shares purchased for the duration of the hold period. Investors can also earn money at the end of the hold period (usually between 5 to 7 years) if their chosen property has appreciated and is sold at a profit. Arrived has taken many of the benefits of REIT offerings (the chance to earn rental income while the property appreciates) and combined them with an investor-friendly business model that allows non-accredited investors to participate. Arrived investors will receive the same kind of detailed expense reports and balance sheets that shareholders in REITs get on an annual basis. Additionally, because Arrived investors are actual property owners, you can gain the annual tax breaks that come with property depreciation and write-off of the capital expenses associated with the property. Fees Almost every investment offering has fees, but Arrived does a good job of minimizing those fees. The company buys properties directly from owners, which usually eliminates broker commissions. After that, Arrived charges two basic fees. One is a sourcing fee, which is a reimbursement paid to Arrived for the cost of scouting out a property and running it through the platform's vetting process. This vetting is designed to make sure that the properties being targeted hit the sweet spot between affordability and market upside. There is also an annual asset management fee (AUM), which covers the cost of the property manager and maintenance for the investor's chosen property. These fees vary from property to property but they will be clearly spelled out in the investment prospectus for each of their offerings. Overall, it's a pretty straightforward fee structure, and considering that investors can buy in for as little as $100, Arrived deserves a lot of credit for keeping it simple and affordable. Ease of Use When it comes to using any web-based platform, the easier it is to use, the better off the platform and its users will be. That goes doubly so for investment platforms that have offerings for non-accredited investors. Arrived's founders understand this and have acted accordingly. Signup is incredibly easy, requiring only an email address and password. After completing the signup, investors are offered the chance to participate in their choice of a weekly webinar with a Q&A for new investors, a Google call, or a live telephone call with an Arrived team member who will walk them through how the platform works and what they can expect as investors. This small gesture goes a long way toward building investor confidence. Investors can ask direct questions and receive answers from an actual Arrived team member. Investors who wish to dive right in can skip past the intro session and dive right into investing, where the offerings will also feature the relevant information to make an informed decision. The process for investing in properties on the platform is just as simple. Investors can browse all available offerings or apply filters to find properties that meet their investment criteria. Investors can view property-specific details for each offering and then purchase shares in homes they want to add to their portfolios. Investor Education Arrived realizes that no online real estate investing platform can accomplish its mission without a highly developed investor education section. This commitment to investor education starts at sign-up and the webinar for new investors with time for a Q&A session, it's incredibly reassuring to a new investor that there is a live person to whom they can ask questions right out of the gate. The Learn tab on the platform's home page will lead investors to an incredibly informative series of blogs on a variety of learning topics. Each of the blogs is well-organized and accessible to novice investors with no experience in real estate. The platform's education efforts do not cut short any topic, and it seems topics in the Learn section are carefully selected. Another great resource here is the How Arrived Works section, which can be accessed under the Learn tab. Clicking this section will direct investors to a simple-to-use page that features a comprehensive article on how the platform works. The article is dedicated to informing investors how the platform targets properties and how investors make money. The Help & FAQ section on Arrived is much more than an afterthought. It's well stocked with information, and investors can get answers to any questions not covered here by clicking on the message widget at the bottom right corner of the page. Arrived's investor education is concise, complete, accessible, and thorough. Offerings Arrived's business model of scouting out rental properties in markets with upside is solid. It's so solid that the company has already fully funded over 180 rental properties with a total value of more than $65 million. The platform typically adds new properties every 1 to 2 weeks, with some of the most popular properties selling out in a matter of minutes. Arrived also launched its first batch of short-term rental properties in September 2022 to allow investors to add even greater diversification to their portfolios and benefit from the greater potential upside of investing in vacation rentals. Arrived also offers diversified funds with the Single Family Residential Fund and an opportunity to invest in real estate-backed debt through the Private Credit Fund. Returns In the first quarter of 2024, 352 individual properties paid dividends of over $1.1 million, which reflects a quarter-over-quarter increase of 16%. Additionally, more than 11,700 investors invested $9.8 million in the Arrived Single Family Residential Fund during the quarter. In the last quarter of 2024, 365 individual properties paid dividends of over $1.84 million, which reflects a quarter-over-quarter increase of 19%. Additionally, over 18,500 investors invested $19M+ in the Arrived Single Family Residential Fund by the end of 2024. Arrived ended Q4 with a stabilized occupancy rate of 92% for 387 operational properties, helped by 66 new leases that were signed during the quarter. The new leases had an average term of 15.5 months, and 63% leased higher than the forecast rent. Should You Use Arrived Homes? The Arrived platform does an admirable job of combining the best aspects of REIT investing with a business model that caters to everyday investors. The opportunity to earn passive income with $100 buy-ins, and the ability to take advantage of tax breaks that are usually only available to large investors, only sweeten the package. Yes, there is a hold period and risk of loss, but at current interest rates, $100 in a savings account isn't going to be a lot in 5 to 7 years. Arrived gives investors the chance to put even small amounts of money to work for them by investing in a tangible asset; without accreditation. Overall, Arrived is worthy of serious consideration by any investor. That goes doubly so for non-accredited investors who want to jump into investing in a real estate property. This article This Platform Makes It Easy to Own Rental Property Without Being a Landlord with as Little as $100 originally appeared on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
3 days ago
- Business
- Yahoo
The Smartest Real Estate Dividend Stocks to Buy With $2,000 Right Now
Key Points EPR Properties has a 6% dividend yield. Realty Income has increased its monthly dividend 131 times since coming public in 1994. Healthpeak Properties pays a very healthy monthly dividend. 10 stocks we like better than EPR Properties › Investing in real estate investment trusts (REITs) can be a very effective way to generate consistent dividend income. These companies typically produce dependable rental income that supports attractive dividend payments. Most REITs also reinvest capital to expand their portfolios, supporting rental income and dividend growth. EPR Properties (NYSE: EPR), Realty Income (NYSE: O), and Healthpeak Properties (NYSE: DOC) currently rank among the most compelling REITs to buy for dividend income right now. They offer high-yielding monthly dividends, making them ideal choices for investors seeking reliable passive income. An attractive income stream EPR Properties focuses on experiential real estate such as movie theaters, eat-and-play venues, and attractions. It leases these properties to operators under long-term, net leases that require tenants to cover all operating costs, including routine maintenance, real estate taxes, and building insurance. This structure provides EPR with stable rental income. The REIT expects to generate between $5.00 and $5.16 per share of funds from operations (FFO) as adjusted this year. That's plenty of cash flow to cover its monthly dividend payments ($0.295 per share each month and $3.54 annually). At that payment rate, the landlord has a dividend yield of more than 6%, turning a $2,000 investment into $120 of annual dividend income (or $10 per month). EPR Properties reinvests its excess cash after paying dividends into additional experiential properties. The REIT spent $37.7 million in the first quarter, including buying an attraction property for $14.3 million. It has lined up another $148 million of experiential development and redevelopment projects it expects to fund over the next two years. These investments should grow the REIT's FFO per share by 3%-4% annually, supporting dividend growth within that range. An extremely durable dividend stock Realty Income owns a diversified portfolio (retail, industrial, gaming, and other properties), net leased to many of the world's leading companies. Its high-quality portfolio generates durable rental income to support its monthly dividend. Its portfolio has been so resilient that the REIT has only had one year when it didn't grow its adjusted FFO per share (2009). The REIT's durable rental income has provided it with a rock-solid foundation to pay dividends. Realty Income has declared 661 consecutive monthly dividends throughout its history. Better yet, it has raised its payment 131 times since its public market listing in 1994, including 111 straight quarters. That payout currently yields more than 5.5%. Realty Income is in an excellent position to continue increasing its dividend. It generates substantial free cash flow after paying dividends and maintains one of the industry's strongest balance sheets. Meanwhile, it has a massive market opportunity, with over $14 trillion of real estate in its core markets suitable for net leases. A very healthy income stock Healthpeak Properties holds a diversified portfolio of healthcare real estate. Its outpatient medical, lab, and senior housing assets benefit from steady and rising demand, producing consistent and growing rental income. This stable income supports the landlord's monthly dividend, which yields nearly 6.5%. Healthpeak's existing portfolio should grow its rental income by around 3% per year due to contractual rental escalation clauses. Additionally, the company expects to capture bigger rent bumps as existing long-term leases expire and it signs new leases at higher market rents. Meanwhile, Healthpeak's strong balance sheet and substantial excess cash flow after paying dividends provide ample flexibility to pursue new investments, including acquisitions, development projects, and mortgage loans secured by healthcare real estate. The REIT's growth drivers should increase its income, supporting further dividend growth. Smart REITs to buy for passive dividend income EPR Properties, Realty Income, and Healthpeak Properties generate reliable rental income to support their high-yielding monthly dividends. They also have strong financial positions that enable continued investments in new income-generating properties, fueling further income and dividend growth. These qualities make them top REITs to buy for investors seeking to turn $2,000 into dependable passive income. Should you invest $1,000 in EPR Properties right now? Before you buy stock in EPR Properties, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and EPR Properties wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $636,628!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,063,471!* Now, it's worth noting Stock Advisor's total average return is 1,041% — a market-crushing outperformance compared to 183% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 21, 2025 Matt DiLallo has positions in EPR Properties and Realty Income. The Motley Fool has positions in and recommends EPR Properties and Realty Income. The Motley Fool recommends Healthpeak Properties. The Motley Fool has a disclosure policy. The Smartest Real Estate Dividend Stocks to Buy With $2,000 Right Now was originally published by The Motley Fool
Yahoo
3 days ago
- Business
- Yahoo
Alexander & Baldwin Second Quarter 2025 Earnings: EPS Beats Expectations
Alexander & Baldwin (NYSE:ALEX) Second Quarter 2025 Results Key Financial Results Revenue: US$51.7m (flat on 2Q 2024). Net income: US$25.2m (up 114% from 2Q 2024). Profit margin: 49% (up from 23% in 2Q 2024). EPS: US$0.35 (up from US$0.16 in 2Q 2024). AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. All figures shown in the chart above are for the trailing 12 month (TTM) period Alexander & Baldwin EPS Beats Expectations Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 9.4%. Looking ahead, revenue is expected to decline by 6.2% p.a. on average during the next 2 years, while revenues in the REITs industry in the US are expected to grow by 4.6%. Performance of the American REITs industry. The company's shares are up 4.4% from a week ago. Risk Analysis We don't want to rain on the parade too much, but we did also find 3 warning signs for Alexander & Baldwin (1 is significant!) that you need to be mindful of. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
