A while back, I came across an article about opportunities in commercial real estate and immediately thought of securities related to REIT stocks and real estate investment trusts. It was the public comments, not the story, that made the content memorable.
Apparently, experts in the field believe that there are huge bargains on offer in commercial real estate right now. That's understandable, given the lingering effects of the coronavirus crisis. But Internet commenters balked at the millions of dollars it would cost to participate in the deal. This is not an amount that the average individual investor can easily invest.
Sure, commercial real estate may have promising potential, but it may not be accessible. But don't worry. These REIT stocks of his may save the day here.
EPR properties (EPR)
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Based in Kansas City, Missouri, EPR properties (New York Stock Exchange:EPR) represents a major comprehensive experiential net lease REIT. According to its published profile, the company specializes in select permanent experiential properties in the commercial real estate industry. We focus on venues that create value by promoting leisure and recreational experiences outside the home. Since the beginning of the year, EPR stock has suffered a loss of 14%.
Certainly not where management wanted it to go from there. Basically, there are extenuating circumstances. As the consumer economy faces multiple headwinds, including high inflation, high borrowing costs and layoffs in the tech sector, many people are determined to cut back on spending. At the same time, consumers may be prioritizing experience, which bodes well for his EPR stock.
To be fair, analysts are predicting a weaker year in 2024, with earnings per share of $2.62 and revenue of $617.76 million. Last year, the company had revenue of $705.67 million and EPS of $1.97. However, the higher-end sales estimate puts him at $717 million, which may be more realistic given travel-related consumer sentiment. Therefore, it is one of the REIT stocks to consider.
Well Tower (WELL)
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Headquartered in Toledo, Ohio, well tower (New York Stock Exchange:good) sells itself in many ways. According to the company profile, the REIT will expand innovative care delivery models and provide financing for the real estate and infrastructure needed to improve people's health and overall healthcare experience. The company invests in residential housing companies, acute care providers, and health systems. Since the beginning of this year, WELL has increased more than 3% of its market value.
Fundamentally, demographic realities make aged care providers attractive. Millions of baby boomers will retire, and many will need long-term care. Yes, it is true that Welltower's performance was unstable last year. Overall, the unexpected average was 12.33% below the parity. Some neighborhoods were good and some were really bad.
However, for 2024, experts predict that EPS will reach $1.27 on revenue of $7.46 billion. That's a very favorable forecast for earnings of 66 cents per share on sales of $6.64 billion in 2023.
The REIT also pays a forward dividend yield of 2.62%. Cover experts expect the stock to be a Moderate Buy, with an average price target of $99.21.
Real estate income (O)
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Perhaps the most famous REIT stock is real estate income (New York Stock Exchange:○) is perhaps best known for offering monthly dividends. The forward yield is also quite high at 5.88%. It is true that the dividend payout ratio is rising, but this is important when it comes to REIT stocks. These entities generally operate at higher ratios than non-REITs based on their unique business structures.
Fundamentally, what's really fascinating about real estate is the core industry it's based on. The company benefits from cash flow from his more than 15,450 properties. This huge footprint includes all kinds of businesses, especially the brands we shop with every day. For example, real estate should be a solid idea unless you envision a world where people no longer need home improvement products.
To be sure, Realty's fiscal 2023 results may have been mixed. However, analysts expect him to bounce back in 2024, predicting him to post EPS of $1.41 on revenue of $4.87 billion. This is much better than last year's EPS of $1.26 on revenue of $4.08 billion.
Finally, O stock has a moderate buy outlook with a price target of $60.38. It is one of the easiest REIT stocks to buy.
Publication date, Josh Enomoto did not have any positions (directly or indirectly) in any securities mentioned in this article. The opinions expressed in this article are those of the writer and are influenced by InvestorPlace.com. Publishing guidelines.
