Essential Properties
This triple net lease REIT is a solid addition to conservative portfolios. Essential Properties Realty Trust Inc. (NYSE: EPRT) acquires, owns and manages single-tenant properties in the United States. It leases its properties to middle-market companies, such as restaurants, car washes, automotive services, medical and dental services, convenience stores, equipment rental, entertainment, early childhood education, grocery and health and fitness on a long-term basis.
As of December 31, 2021, it had a portfolio of 1,451 properties. Because it qualifies as a REIT for federal income tax purposes, it generally would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders.
The yield here is 4.46%. The $25 Truist Securities price target compares with a $25.98 consensus target and Thursday’s closing share price of $24.38.
Gaming and Leisure
This stock is a unique and interesting way to play the gaming sector and generate income. Gaming and Leisure Properties Inc. (NASDAQ: GLPI) is engaged in the business of acquiring, financing and owning real estate property to be leased to gaming operators in triple net lease arrangements, in which the tenant is responsible for all facility maintenance, insurance required in connection with the leased properties and the business conducted on the leased properties, taxes levied on or with respect to the leased properties and all utilities and other services necessary or appropriate for the leased properties and the business conducted on the leased properties.
The company expects to continue to grow its portfolio by pursuing opportunities to acquire additional gaming facilities to lease to gaming operators. It also intends to diversify the corporate portfolio over time, including by acquiring properties outside the gaming industry to lease to third parties. The company’s current portfolio consists of 44 casinos, including two TRS properties and the real property associated with 42 facilities spread around the United States.
Shareholders receive a 5.44% distribution. Truist Securities has a $60 price target. The consensus target is lower at $55.82, and shares closed at $51.87 on Thursday.
NETSREIT
While somewhat off the REIT radar, this company is a “best idea” at Truist. NETSREIT Corp. (NYSE: NTST) is an internally managed REIT based in Dallas, Texas, that specializes in acquiring single-tenant net lease retail properties nationwide. The growing portfolio consists of high-quality properties leased to e-commerce-resistant tenants with healthy balance sheets.
Led by a management team of seasoned commercial real estate executives, the company’s strategy is to create the highest quality net lease retail portfolio in the country with the goal of generating consistent cash flows and dividends for its investors.
The company had a solid run over the final quarter of 2022 and has continued to grow the income stream to better benefit the stockholders, who are paid a dependable 4.10% distribution.
Truist Securities has set a $22 target price. The consensus target is just higher at $22.73. Shares closed on Thursday at $19.59.
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