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The Rise of REITs: Unveiling the Top 3 Real Estate Investment Opportunities

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The Rise of REITs: Unveiling the Top 3 Real Estate Investment Opportunities

Exploring commercial property investments sparked a revelation about the potential in REITs or real estate investment trusts. A recent commentary highlighted a significant opportunity in commercial real estate, a sector heavily impacted by the aftermath of the Covid-19 crisis. While the general public seemed skeptical due to the substantial investment required, which often ranges in the millions, retail investors may find solace in the accessibility of REIT stocks.

The Story of EPR Properties (EPR)

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Headquartered in Kansas City, Missouri, EPR Properties (NYSE:EPR) is a leading diversified experiential net lease REIT in the commercial property sector. Specializing in select enduring experiential properties, EPR focuses on venues facilitating leisure and recreation experiences. Despite a 14% loss since the beginning of this year, the company’s outlook remains promising.

Amidst headwinds like high inflation and tech-sector layoffs trimming consumer spending, the pivot towards experiential prioritization augurs well for EPR stock. Analysts project earnings per share of $2.62 on sales of $617.76 million for 2024, with a high-end revenue estimate of $717 million, reflective of upbeat travel-related consumer sentiments.

The Saga of Welltower (WELL)

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Based in Toledo, Ohio, Welltower (NYSE:WELL) focuses on funding real estate and infrastructure for senior housing operators, post-acute providers, and health systems to enhance healthcare experiences. Enjoying a market value increase of over 3% since the year’s inception, WELL underscores the appeal of senior care investments.

Despite a fluctuating earnings performance last fiscal year, analysts anticipate EPS of $1.27 on sales of $7.46 billion for 2024, a considerable jump from the previous year’s figures. Offering a forward dividend yield of 2.62%, WELL maintains a moderate buy rating with a $99.21 average price target.

The Legend of Realty Income (O)

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Renowned for its monthly dividend offering a high yield of 5.88%, Realty Income (NYSE:O) is a staple choice amongst REIT stocks. Utilizing cash flows from over 15,450 real estate properties, Realty Income thrives on diverse business revenues, including everyday brands that resonate with consumers.

Despite a mixed performance in fiscal 2023, analysts predict a resurgence in 2024 with an EPS of $1.41 on sales of $4.87 billion, notably exceeding the previous year’s earnings. With a moderate buy rating and a $60.38 price target, O stock stands out as an attractive REIT investment.

Disclosure: On the date of publication, the author did not hold any positions in the securities mentioned in this article. The views and opinions expressed in this piece are solely those of the author and do not necessarily reflect the views of InvestorPlace.

A former senior business analyst for Sony Electronics, the author has been instrumental in brokering major contracts with Fortune Global 500 companies. Over the years, they have provided unique insights into investment markets and various industries, aligning with the best practices in publishing guidelines. Connect on Twitter @EnomotoMedia.