4 REITs With 10%+ Yields

4 REITs With 10%+ Yields: Once-In-A-Lifetime Opportunity Or A Desperate Trap?
https://finance.yahoo.com/news/4-reits-10-yields-once-194158521.html

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Summary

The article discusses four REITs with 10%+ yields: Medical Properties Trust (MPW), Uniti Group (UNIT), SL Green Realty (SLG), and Outfront Media (OUT).

Medical Properties Trust is a healthcare REIT that specializes in hospital real estate. The company's share price has fallen drastically since January 2022, due to concerns about its debt load. However, the REIT has made progress in managing its debt maturities and recently cut its dividend in half to free up cash for debt reduction.

Uniti Group is an infrastructure REIT that leases wholesale fiber to various data providers. The company has a history of drama, including a major dividend cut in 2019. However, Uniti Group appears to be making progress in turning things around and could see significant upside if the market starts to value it in line with other infrastructure REITs.

SL Green Realty is Manhattan's largest office landlord. The company's 10% yield is tempting for investors seeking substantial income, but the landscape of New York's real estate market has shifted due to the pandemic and the embrace of remote work. SL Green has maintained its dividend payout through 2023, but the sustainability of such high yields is under scrutiny.

Outfront Media is a REIT with a focus on outdoor advertising. The company's high yield of 11.4% is a reflection of the high-risk, high-reward nature of the advertising market. Outfront Media faces risks from the cyclical nature of the advertising industry and the rapid advance of digital advertising.

Overall, the article concludes that investors should tread with caution when considering high-yield REITs. The double-digit yields are undeniably attractive, but each company faces unique industry challenges. Investors should carefully consider the risks and rewards before investing in any high-yield REIT.

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Comment

High-dividend REITs are always a risk with reward.

It is a good idea to be aware of these risks inherent in individual REIT stocks and implement an appropriate portfolio strategy.

In addition, it is recommended to select companies with excellent dividend yields among REITs that have inherent competitiveness and a solid financial structure that can maintain dividends over the long term.