2023-07-05 10:36:35 ET
Real Estate Investment Trusts (REITs) provide an efficient way for investors to use real estate as part of their investment strategy. They allow individuals to invest in portfolios of large-scale properties the same way they invest in other industries through the purchase of REIT stocks . An enticing aspect of REITs is their potential for regular income streams, long-term capital appreciation, and diversification. REITs must distribute at least 90% of their taxable income to shareholders annually in the form of dividends. This can make them particularly attractive to income-focused investors.
REITs operate in various real estate sectors, including retail, residential, office, industrial, mortgage, and even specialty sectors like data centers. They provide a way for the average investor to gain exposure to real estate assets that would be otherwise out of reach. With the additional advantage of liquidity that direct property ownership lacks. Investors looking to invest in REIT stocks need to consider the health of the specific real estate sector. As well as the quality of the properties, and the trust’s management. With that in mind, let’s explore three REIT stocks to watch in the stock market today.
REIT Stocks To Watch Right Now
- Simon Property Group Inc. ( NYSE: SPG )
- Realty Income Corporation ( NYSE: O )
- Prologis Inc. ( NYSE: PLD )
Simon Property Group (SPG Stock)
As one of the largest REITs globally, Simon Property Group (SPG) owns, develops, and manages premier shopping, dining, entertainment, and mixed-use destinations. The company has properties across North America, Europe, and Asia.
Just last month, Simon Property Group announced an expansion with its collaboration with Razer, a prominent brand for gamers. In detail, the companies will launch five new RazerStore shops as part of their retail expansion in 2023. The new RazerStore outlets are now open for customers at five key locations: King of Prussia in Philadelphia, Roosevelt Field on Long Island, The Florida Mall in Orlando, Dadeland Mall in Miami, and The Domain in Austin.
In the last month of trading action, shares of SPG stock have advanced by 10.06%. Meanwhile, during Wednesday morning’s trading session, SPG stock is trading at $117.27 a share.
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Realty Income Corporation (O Stock)
Next, known as “The Monthly Dividend Company,” Realty Income Corporation (O) primarily invests in single-tenant commercial properties. The company’s portfolio includes over 6,500 properties located in 49 states, with long-term leases that provide a steady stream of rental income.
Last month, Realty Income Corporation announced a change in its senior management team. The company’s current CFO and Treasurer, Christie Kelly, will retire at the end of 2023, and Jonathan Pong, the current Head of Corporate Finance, will assume these roles from January 1, 2024. This transition, resulting from a planned succession procedure, will place Pong in a direct reporting line to Sumit Roy, the President and CEO of Realty Income.
Looking at the last month of trading action, shares of O stock are up slightly by 0.50%. While, during Wednesday morning’s trading session, Realty Income stock is trading at $60.27 per share.
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Prologis (PLD Stock)
Last but not least, Prologis (PLD) is a global leader in logistics real estate, with a focus on high-barrier, high-growth markets. As e-commerce continues to grow, so does the demand for Prologis’ distribution centers and warehouses.
Earlier this week, Prologis announced the date it will release its second quarter of 2023 financial results. Diving in, the company is set to report its Q2 2023 financial results on Tuesday, July 18, 2023.
Over the last month of trading, Prologis stock is down modestly by 0.47%. Moreover, during Wednesday’s mid-morning trading session, shares of PLD stock are trading at $124.04 a share.