REIT stocks are a type of investment that allows individuals to invest in real estate without having to purchase property directly. In brief, REITs pool money from many investors and then use that money to purchase and manage income-producing real estate, such as office buildings, shopping centers, or apartments. Additionally, REITs are required by law to payout at least 90% of their taxable income to shareholders in the form of dividends, which makes REIT stocks an attractive investment for those seeking regular income.
Moreover, REITs trade on major stock market exchanges and can be purchased through most brokerages. REITs offer investors the potential for high dividends, capital appreciation, and diversification. However, they also come with risks, such as interest rate risk, credit risk, and market risk. As with any investment, it is important to do your research before investing in REIT stocks. If this has you keen on investing in REIT stocks, here are four for your watchlist this week.
REIT Stocks To Buy [Or Sell] Right Now
- Federal Realty Investment Trust (NYSE: FRT)
- Realty Income Corporation (NYSE: O)
- Kimco Realty Corporation (NYSE: KIM)
- Simon Property Group Inc. (NYSE: SPG)
1. Federal Realty Investment Trust (FRT Stock)
First, Federal Realty Investment Trust (FRT) is a publicly traded real estate investment trust that owns, develops, and operates shopping centers and mixed-use projects. Federal Realty’s properties are located in major metropolitan markets including Boston, Washington, D.C., San Francisco, and Los Angeles.
FRT Recent Stock News
In August, the company reported its 2nd Quarter 2022 financial and operating results. In the report, Federal Realty Investment Trust announced second-quarter earnings of $1.65 per share, while notching in revenue of $264.1 million. This came in better than analysts expected for the quarter. Specifically, the consensus estimates for the quarter were earnings of $1.50 per share and revenue of $250.0 million.
Meanwhile, FRT also reported revenue growth of 14% during the same period, in 2021. Separate from this, Federal Realty announced the company’s 55th straight year of raising its common stock dividends.
Donald C. Wood, Chief Executive Officer commented in the letter to shareholders, “The quality of our assets, our sector-leading demographics, and high-barrier markets give us confidence that our multi-faceted business plan is the right one to serve the consumer in today’s economy.” Moving along, shares of FRT stock are set to open this trading week at $100.34 per share. Considering this, do you think now is a good time to invest in FRT stock?
FRT Stock Chart
2. Realty Income Corporation (O Stock)
Next, Realty Income Corporation (O) is a publicly traded real estate investment trust dedicated to providing shareholders with dependable monthly income. Realty Income’s monthly dividend has increased 117 times since going public. What’s more, Realty Income has paid 627 consecutive common stock monthly dividends throughout its 53-year operating history. Realty Income is an S&P 500 company and is the only real estate company included in the S&P High Yield Dividend Aristocrats index.
O Stock Recent Stock News
Earlier this month, Realty Income Corporation reported its second quarter 2022 financial results. In detail, Realty Income reported earnings of $0.97 per share and revenue of $810.4 million. This is compared to analysts’ consensus estimates of $0.95 per share, with revenue of $806.5 million. Also, the company announced a revenue increase of 74.6% on a year-over-year basis.
Additionally, Realty Income reaffirmed its guidance for 2022 funds from operations of $3.84 to $3.97 per share. Going into this week’s trading action, shares of O stock are looking to open at $64.31 per share. With this in mind, do you think now is a good time to add O stock to your list of REIT stocks to watch?
O Stock Chart
3. Kimco Realty Corporation (KIM Stock)
Let’s now look at Kimco Realty Corporation (KIM). Kimco Realty Corporation is one of the largest real estate investment trusts (REITs) in the United States. Kimco owns and operates open-air shopping centers across the country, totaling over 950 properties in 44 states. Kimco’s portfolio includes some of the most well-known retail brands, such as Costco, Kohl’s, Lowe’s, and Walmart. In addition to its strong retail presence, Kimco also owns and operates office buildings, industrial parks, and mixed-use properties.
KIM Recent Stock News
At the end of August, KIM reported that will be releasing its third quarter 2022 financial and operating results Thursday, October 27, 2022. With that, let’s take a look at how Kimco Realty performed in the second quarter of 2022.
Diving right in, Kimco Realty posted second quarter 2022 earnings of $0.40 per share, along with revenue of $427.2 million. This is versus, the consensus earnings estimate of $0.38 per share, and revenue estimates of $415.3 million. Additionally, the company reported a 47.8% increase in revenue for the 2nd quarter of 2022, versus the same period in 2021. Aside from that, in the same release, the company’s Board of Directors increases the company’s quarterly dividend for the third straight quarter.
Kimco CEO Conor Flynn said in their release to shareholders, “Our focus on leasing continues to validate the high quality of our portfolio, with over seven million square feet leased through the end of June. Our last-mile, open-air, grocery-anchored portfolio is facilitating higher retention, driving strong new tenant demand, and maintaining solid pricing power, even in the current inflationary environment, all of which should lead to greater free cashflow and visible earnings growth.” Going into the new trading week, shares of KIM stock will open Monday’s trading session at around $20.74 per share. After reading this, do you think KIM stock is worth the watch this week?
KIM Stock Chart
4. Simon Property Group (SPG Stock)
Finishing up the list, let’s check out Simon Property Group (SPG). Simon Property Group, Inc. is an American real estate company in the United States, the largest retail real estate investment trust (REIT), and the largest shopping mall operator in America.
SPG Recent Stock News
In August, Simon Property Group reported its second quarter 2022 financial results. In detail, Simon Property Group reported earnings per share of $2.96 and revenue of $1.3 billion. This is in comparison to the street’s consensus estimates that were earnings per share of $2.91 and revenue of $1.2 billion. Additionally, the company commented it expects full-year 2022 funds from operations of $11.70 to $11.77 per share.
“We are very pleased with our financial and operational performance in the second quarter and once again raised our quarterly dividend and full-year 2022 guidance,” stated David Simon, Chairman, Chief Executive Officer, and President. Going into this week’s trading action, shares of SPG stock are set to open Monday’s trading day at $99.70 per share.