There are hundreds of real estate investment trusts (REITs). With so many choices, it’s easy to overlook some good options.
three REIT Ideal for anyone trying to generate Passive income that is Getty real estate ((((GTY 2.11%)., Plymouth Industrial REIT ((((PLYM 1.45%).When VICI property ((((VICI 3.70%)... All three pay high-yielding dividends, which could continue to grow over the next few years.
High octane dividend
Getty Realty focuses on owning properties where consumers spend money in or on their cars. These properties include gas stations, convenience stores, car repair shops, car wash shops, and auto parts stores. The company has established these independent commercial facilities as long-term triple nets (NNN)lease. With this rental structure, tenants will be responsible for maintenance, building insurance and real estate taxes, and Getty Realty will be able to generate very stable rental income to support dividends.
REITs are currently offering investors a dividend yield of 6.2%. This is almost twice the average of the REIT sector, S & P 500 Index fund. Getty Realty can easily support that payout. It has a conservative 75% payout rate and a solid investment grade balance sheet. These features give you financial flexibility to keep your portfolio growing.
Getty Realty has invested millions of dollars in acquisitions, development projects, and redevelopments over the years. Since 2015, these investments have increased adjusted operating capital (AFFO) per share at a combined annual rate of 5.6%, supporting the growth of a combined annual dividend of 5.4%. With a large pipeline of investment opportunities and a solid financial profile, REITs should be able to continue to increase high-yielding dividends over the next few years.
Rents for this REIT are skyrocketing
Plymouth Industrial focuses on ownership of warehouses, distribution centers, light industry, and Kowan Industrial. The Industrial REIT We will rent these properties to a single tenant under a long-term NNN lease. This provides stable cash flow to support dividends with a yield of 5.1%.
Plymouth also has a solid balance sheet, providing access to capital to expand its industrial portfolio. In the first quarter of this year, REITs acquired 38 industrial buildings for $ 188.4 million. This included purchasing the remaining 80% stake in the Memphis joint venture from a partner.
REITs benefit from strong demand for industrial real estate and can earn higher market rents when existing leases expire. The company signed a lease over 1.3 million square feet in the first quarter, up 16.7% from previous rates. With these rent increases, along with the acquisition, the company is confident that it will raise its high-yielding dividend by 4.8% earlier this year, increasing its dividend for the second consecutive year. Given the growing demand for industrial space, Plymouth dividends could be even higher.
This payout is not very gambling
VICI Properties is a professional REIT focused on gaming properties and other experiential real estate. These facilities are leased to casino operators under a long-term NNN lease. These contracts provide a very stable rental income to support a dividend with a yield of 4.6%.
VICI has a good record of dividend growth, increasing it in each of the last four years, with a healthy 9.1% rise. REITs also feature a solid dividend payment rate of 75% for AFFOs and a strong investment grade balance sheet.
These factors give VICI financial flexibility to expand their experienced real estate portfolio. We recently closed the acquisition of REIT MMG Growth Properties, which focuses on casinos. Meanwhile, it is diversifying into new experiential properties like the golf experience at the destination. We see this as a great opportunity to continue acquiring experience-based properties from operating companies that should support continuous dividend growth.
Great option for passive income
With so many REITs to choose from, many investors have yet to discover Getty Realty, Plymouth Industrial and VICI Properties and are missing out on quality dividends. All three REITs offer high-yielding payouts backed by a durable portfolio and a strong financial profile. These attractive payouts will continue to grow, making these REITs ideal for those looking to generate passive income.
Matthew Dillaro It has a position in the Plymouth Industrial REIT and VICI properties. The Motley Fool has a position in the Plymouth Industrial REIT and recommends it. The Motley Fool recommends the VICI property. The Motley Fool Disclosure policy..