5 Key REITs You Should Consider for Your Portfolio

Real estate has always been one of the most reliable sources of long-term wealth. Private real estate is out of reach for investors when it comes to investing, but this does not have to be the case. We can use Real Estate Investment Trusts (REITs) to get exposure to the housing market.

In 2020, the S&P 500 ended with a gain of about 20%, and the REIT sector (VNQ) declined 5%. However, when REITs resurfaced in 2021, the roles reversed; The Vanguard REIT ETF gained 40.5%, surpassing the S&P 500’s gain of 28.7%.

As investors, we’ve been through a lot in the last few years and now face new challenges. High inflation, geopolitical uncertainty, and rising interest rates are just a few examples.

Key REITs for Your Watchlist

1) Realty Income

Realty Income, often known as The Monthly Dividend Company, is one of the most well-known REITs. The sector has seen a lot of consolidation, which includes Realty Income.



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After completing the VEREIT transaction, the business announced the acquisition of $1.7 billion in casino assets from Wynn Resorts. The change moves Realty Income into the gaming industry, which is good news for another pick I have below.

2) Simon Property Group

The next REIT is Simon Property Group (SPG), which has the most extensive and best portfolio of mall properties, with numerous class-A malls.

When SPG purchased TCO at the end of 2020, it became yet another REIT to increase its portfolio through acquisition. SPG’s stock rose by 95% in 2021.

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