The company is structured as a REIT, and its monthly distributions are supported by the cash flow from over 6,500 real estate properties owned under long-term lease agreements with commercial tenants. To date, the company has declared 608 consecutive common stock monthly dividends throughout its 54-year operating history and increased the dividend 109 times since its public listing in 1994. It is a top real estate member of the S&P 500 Dividend Aristocrats index.
Realty Income comes with a 4.44% distribution. Morgan Stanley has set its price target at $74. The $70 consensus target is closer to the $67.97 close on Thursday.
SL Green Realty
This leading large-cap office REIT is a solid but somewhat contrarian play. SL Green Realty Corp. (NYSE: SLG), Manhattan’s largest office landlord, is a fully integrated REIT focused primarily on acquiring, managing and maximizing value of Manhattan commercial properties.
As of December 31, 2020, it held interests in 88 buildings totaling 38.2 million square feet. This included ownership interests in 28.6 million square feet of Manhattan buildings and 8.7 million square feet securing debt and preferred equity investments.
The company announced this week that it has signed leases totaling 343,186 square feet during the early weeks of 2023. New leases include a 15-year lease with 777 Partners, an alternative investment platform, covering 18,476 square feet on the entire 27th floor at One Madison Avenue.
This follows previously announced new leases with Franklin Templeton, IBM and Chelsea Piers Fitness and increases leased occupancy to 56.6% approximately 10 months prior to the anticipated project completion date.
Shareholders receive an 8.82% distribution. SL Green Realty stock has a $47 target price at Barclays. The consensus target is $40.94, and Thursday’s close was at $37.21.
Stag Industrial
This strong industrial REIT play offers solid upside potential. Stag Industrial Inc. (NYSE: STAG) is a self-managed full-service real estate company primarily focused on the acquisition, ownership and management of single-tenant, Class B warehouses in secondary markets across the United States. The company continues to focus on expansion of its acquisition platform to find acquisitions to grow the portfolio.
Top Wall Street analysts expect management to be aggressive acquirers over time. Additionally, the in-place portfolio should deliver stable organic growth supported by healthy property-level fundamentals.
Investors receive a 4.21% distribution. The Raymond James price objective of $36 is shy of the $36.59 consensus target. Stag Industrial stock ended Thursday trading at $35.52.
All these top REIT stocks are way off the highs printed this time last year, and they have paid dependable dividends for years. While there are also mortgage REITs that pay monthly dividends, they are more vulnerable to a shake-out in a volatile environment, and we wanted to focus on the companies that had hard assets. It is important to remember that REIT distributions may contain return of principal in their monthly distribution payments.
Originally published at 24/7 Wall St.
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