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3 Industrial REITs to Watch
Leaders in the industrial REIT space
REIT stands for real estate investment trust. A REIT is a company that owns, operates, and/or finances real estate. Publicly listed REITs are required to pay 90% of all the taxable income they generate to shareholders in the form of dividends.
REITs have been known historically for their steady dividend payments and have not been looked at for growth. Over recent years, a specific sector of REITs has been experiencing exponential growth due to the rise in e-commerce. With more people doing their shopping online, there is a greater need for property types such as warehouses, distribution centers, manufacturing facilities, storage facilities, research & development facilities, and showrooms.
Industrial REITs is the specific sector of REITs that has seen exponential growth. In just looking at 2019, according to Hoya Capital Real Estate research, industrial REITs were relentless in outperforming the broader REIT market, producing a total return of approximately 49% for the year. 3 of the leading REITs, with 1 being slightly different in its approach than the other 2 are:
· STAG Industrial (STAG)
· Rexford Industrial Realty (REXR)
· Innovative Industrial Properties (IIPR)
Note: I am sharing this information for educational purposes only. Please do your research and due diligence before investing.
1. STAG Industrial (STAG)
STAG is a REIT that focuses on the acquisition and operation of single-tenant industrial properties throughout the United States. As of June 2020, STAG owns 457 buildings in 38 states with approximately 91.8 million rentable square feet. The 457 buildings include 379 warehouse/distribution builders, 70 light manufacturing buildings, and 8 flex/office buildings.
STAG’s buildings have an occupancy of 97%. STAG’s tenants include Amazon, XPO Logistics, Ford Motor Company, FedEx, and DHL Supply Chain. As of January 2020, STAG pays a monthly dividend of $0.12 per share. As of the market close on October 28th, 2020, STAG was $31.05.
Since going public in April 2011, STAG has provided a total return of approximately 373% with dividends reinvested and an…
