Investing in real estate is a good way to make money when you are looking to diversify your portfolio. Real estate investment trusts (ETFs) are a great way to do just that. These ETFs invest in properties across the United States, including apartments, office buildings, and shopping centers.
Mid-America Apartment Communities
Investing in Mid-America Apartment Communities (MAA) is exciting because it offers investors a number of exciting investment characteristics. These include strong Sun Belt markets, an attractive portfolio of apartment buildings, and redevelopment and renovation efforts. The company’s strong performance is driven by record demand for rental real estate.
Mid-America Apartment Communities’ stock has recently reached the best price in its history. In addition, the company has strong fundamentals, a favorable dividend, and a bright future. With an enticing price tag, it is a perfect time to buy.
Mid-America Apartment Communities (MAA) owns and operates a portfolio of apartment communities in a variety of southeastern United States locations. The company’s portfolio contains holdings in all but one of the southeastern states, including Texas, Florida, and North Carolina.
MAA’s portfolio is comprised of a combination of owned communities and communities that the company is in the process of acquiring or developing. Mid-America expects high occupancy rates and low resident turnover in its properties.
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Equity Residential
Despite the recent selloff, Equity Residential REIT (NYSE: EQUITY) has a strong financial position and continues to grow funds from operations. In April, the company reported solid first quarter results with a double-digit percentage increase in funds from operations per share.
The company also reported the lowest tenant turnover in its history. In fact, the company acquired a newly built apartment complex in San Diego. Moreover, it has continued its capital recycling program. The REIT is also in the position to continue growing funds from operations while also maintaining a rising dividend.
Historically, real estate investments have performed well during periods of higher than average inflation. Moreover, these investments tend to benefit from the crosscurrents of a recovering economy.
One of the key components of REIT total return is the dividend yield. In recent months, the yield on many REITs has been high. However, many of these companies are trading below their NAV. Moreover, many REITs have debt that will mature at a higher interest rate. This could impose a material cost on capital for many of these companies.
Virtus Real Asset Income ETF
Investing in real estate ETFs is a good way to diversify your portfolio, while also gaining passive income. These ETFs offer a wide variety of real estate investment opportunities, but some are better than others. Here are a few of the best performing real estate ETFs for November 2022.
The Vanguard Total Return Index Fund is a great choice for those looking for a broad spectrum of real estate investment opportunities. The underlying index consists of a mix of U.S.-listed “Real Asset” companies, including real estate investment trusts, master limited partnerships, and American depositary receipts.
The Vanguard Real Estate Index Fund has a total of $39.5 billion in assets. It provides a variety of real estate investment opportunities, including apartment buildings, hotels, manufactured homes, and self-storage facilities. It also offers a diversified real estate portfolio with low-cost management.
The Vanguard Equity Fund is an excellent choice for investors who want a broad real estate portfolio, but prefer a passive approach. The fund includes more than 40 investments. It also offers a dividend yield of 1.83%. It has an expense ratio of 0.48%.
Related: Investing Diversification - What It Is and How To Do It
Regency Centers
Founded in 1963, Regency Centers Corporation (REG) operates and owns a portfolio of shopping centers and other real estate properties. These properties are located in the East and West Coasts, as well as the Midwest. Its portfolio includes interest in approximately 405 properties, including grocery-anchored properties. Regency’s properties are largely e-commerce resistant.
REG maintains a well-regarded tenant roster of supermarkets, food stores, and other retailers. These properties are located in major metropolitan areas and in the suburbs. Its portfolio also includes 55 million square feet of retail space. Among REG’s properties, grocery-anchored centers represent about 80% of annual base rent.
REG’s dividend is well covered by its payout ratio. The Company maintains a fortress BBB+ balance sheet. It announced a quarterly dividend of 62.5 cents per share in April 2022. Its dividend has increased over the past five years.
REG’s portfolio includes interest in approximately 650 tenants in 60 industries. These tenants include a diverse range of retailers and services. The Company’s properties are located in the United States, Canada, and Latin America. In addition to its portfolio of properties, REG has a fortress BBB+ balance sheet.
