REIT Investing | The Best REITs

REIT investing is something 80 million Americans dabble in, but you'd be hard pressed to find anyone who can explain these complex structures simply. We propose one simple metric to be the ultimate measure of the best REITs - how many years in a row has the REIT increased their dividend? It's a measure of how disciplined and risk-averse a REIT management team is, not to mention it benefits investors who can count on a growing stream of income over time. We identify six REITs that have increased dividends for at least 25 years or more - Realty Income $O, Federal Realty Investment Trust $FRT, Essex Property Trust $ESS, Universal Health Realty Income Trust $UHT, National Retail Properties $NNN, and W.P. Carey $WPC. We'll walk you through the process of how we select the best three REITs for beginner investors to own.

RESEARCH PIECES USED IN THIS VIDEO:
1. Quantigence – A Dividend Growth Investing Strategy
2. Investing in Big Data with Data Center REITs
3. The Smaller the Stock, the Bigger the Risk

CHAPTERS:
00:00 Intro
01:04 How do REITs work?
02:24 Why we own REITs
04:27 Many types of complex REITs
06:10 The problem with debt
07:57 What REIT success looks like
12:09 REIT dividend champions
13:55 Geographic concentration risk
15:17 Triple-net REITs
17:34 Realty Income $O plays defense
19:53 W.P. Carey $WPC comes out
21:33 Just say not to $NNN
22:22 Other champion REITs
23:59 The REITs we hold
26:49 Conclusion

ABOUT US:
This video is brought to you by Nanalyze, a boutique media and research firm founded by finance professionals with decades of experience. We share insights about #DisruptiveTechnology #investments in a language that is future-proof and easy to understand.

[CoolStevie]

I love REITs. I own Realty Income and LTC Reit.

[TherealCHuber]

Hi there - really appreciate your analysis. It’s very informative.

I really could do without your sarcasm on the firms inclusion of “people of color” in their content. It’s really not helpful and takes away from the video.

[andrewwhittaker]

Not a paid subscriber so i will take a number & stand in line however i am curious if Nanalyze has a vid on the merits (?) of BDCs versus REITS which they seem to resemble. Particularly in that they pose a similar downside risk of loss of capital. Are BDCs another category of risk altogether or do they differ amongst themselves in the same way you detail with REITS?
Great fan & follower of Nanalyze tho my minuscule investments keep me nibbling at the crumbs. I have referred a younger friend to your vids on basic investment strategy. You are a great antidote to the Youtube world of fintech frenzy.

[Tideo]

Joe, My indicator triggered a possible breakout for the REIT sector. I then checked for REIT charts, most of them are already broke out on the second leg up. NNN, O, FRT, MPW. WPC just broke out on the first leg, too early to confirm on the breakout until breakout on 2nd leg.

[alanyu]

What is your thought on ADC & VICI?

[OmaticFever]

Another great video! Thank you for all you are doing.

[boonyawaiangsuwotai]

I used to think REITs are stocks so when comparing with stocks, they become less attractive. If we see it in term of another asset class - a collection of diversified physical assets with low correlation to stocks and stable income generation, then it may be another story. I understood more why we need to hold some REITs in portfolio. It reminds me of portfolio theory from Markowitz and all weather strategy from Ray Dalio. Thank you so much Joe

[George-fh]

When picking companies for dividend, how much importance do you place on their share prices over time? For example, for the past 5 years, the share prices of FRT, O, and WPC have decreased by more than 25%. Is the logic that as long as there is high probability the companies can sustain increases in dividend yield year-over-year, you don't worry too much about the share prices? While you may not be too concern now, couldn't this become an issue later if you decide to sell the shares and the price has gone down a lot?

[tim]

Excellent. No BS as usual. Simple and easy to understand. Thank you Joe. One question, given much of the western world seems to be in a real estate bubble at the moment, if someone is going to invest in a REIT, what is the minimum time frame one would need to hold, 5, 10, 20 years ?

[MisterSomm]

Isn’t it a terrible time to buy REITs now based on increasing Yields?

[menzelnation]

Such a great video! Sad to see WPC removed themselves from consideration with the dividend cut in 2023, but it makes the question to invest or not an easy one! Thanks for everything you provide on this channel, newsletter etc.