Real estate investment trusts (REITs) that pay monthly dividends are attracting the attention of billionaire investors like Ken Griffin and Jim Simons. Dividends are highly valued by investors because they provide a consistent income stream even during periods of falling stock prices. REITs are a popular choice for income-oriented investors and offer potential long-term capital appreciation. Six REITs owned by billionaires were identified as good options for steady retirement income. These REITs specialize in various niches of the property market, including retail, shopping centers, office buildings, distribution centers, and warehouses.
Agree Realty (ADC), a retail-focused REIT, owns net-lease properties rented by major retail tenants such as Walmart and Dollar General. It is expected to see revenue grow by 20% this year, with funds from operations increasing by 2% per share. ADC trades at a discount to its historical price and has a debt-to-equity ratio that suggests it is not financially stressed. Insider buying and ownership by billionaire investors like Ken Fisher and Bruce Flatt further reinforce its potential.
Phillips Edison & Co. (PECO) specializes in shopping centers anchored by grocery stores. It operates a national portfolio of grocery-anchored shopping centers and expects revenue to grow by 6.6% this year, with funds from operations increasing by 6% per share. PECO has a solid free cash flow and has been increasing its dividend payout steadily. Insider buying by board members and ownership by billionaires like Jim Simons and Ken Griffin add to its appeal.
Realty Income (O), the largest name in the group, owns a diverse portfolio of retail, industrial, and agricultural properties leased to a wide range of tenants. It has a strong history of steadily increasing dividends and expects revenue to grow by 18% in 2023. Realty Income has a comfortable ratio of cash flow to dividends and trades at a discount to its historical price. Billionaire investors like Ken Griffin and Ray Dalio have also taken positions in the company.
STAG Industrial (STAG) focuses on large distribution centers and warehouses along interstate highways. It has a strong roster of major tenants, including Amazon.com and Ford Motor Company. STAG expects revenue to grow by 6.4% this year, with funds from operations increasing by 2.3% per share. The company trades at a discount to its historical price and has a diverse portfolio of properties across multiple states.
Overall, these REITs offer attractive dividend yields ranging from 3.3% to 7.6% and are trading at discounted valuations. They are financially sound and have the support of insider buying and ownership by billionaire investors, making them compelling options for income-oriented investors seeking steady retirement income.