REITs Stock Price Performance and Insights

REITs stock price performance has been a mixed bag over the years, with some years seeing significant gains and others experiencing declines.

Historically, REITs have outperformed the S&P 500 in some years, such as 2013 and 2014, when they rose by 29.4% and 19.1% respectively.

In contrast, REITs have also seen significant declines, like in 2008, when they plummeted by 38.4%.

The performance of REITs can be attributed to various factors, including changes in interest rates, economic conditions, and investor sentiment.

A REIT is a company that owns or finances income-producing real estate across various property sectors. They have to meet specific requirements to qualify as REITs.

REITs trade on major stock exchanges, which makes them easily accessible to investors. This is a significant advantage for those looking to invest in real estate.

Most REITs offer a number of benefits to investors, including the ability to diversify their portfolios and potentially earn regular income.

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The ALPS Active REIT ETF invests at least 80% of its net assets in publicly traded equity securities of Real Estate Investment Trusts (REITs).

The fund primarily invests in publicly traded common equity securities of US REITs.

Its investment objective is to seek total return through dividends and capital appreciation.

Suggestion: Foreign Direct Investment Occurs When a Firm Invests Resources in

The ALPS Active REIT ETF is designed to seek total return through dividends and capital appreciation. This is achieved by investing in a variety of assets.

The fund aims to invest at least 80% of its net assets in publicly traded equity securities of Real Estate Investment Trusts (REITs).

The ALPS Active REIT ETF is a type of exchange-traded fund (ETF) that invests in publicly traded equity securities of Real Estate Investment Trusts (REITs). It's designed to provide total return through dividends and capital appreciation.

This ETF holds at least 80% of its net assets in US REITs, making it a focused investment in the real estate sector.

On a similar theme: Non-traded Reits

You can track the fund's market performance using various metrics, including its market price, NAV (Net Asset Value), and premium/discount relative to its NAV.

Here's a snapshot of the fund's characteristics:

These metrics can give you an idea of the fund's liquidity, trading activity, and market value.

As of December 9, 2024, the REIT stocks listed below were trading at discounts of at least 20% relative to Morningstar's fair value estimates.

Some of the top REIT stocks to consider include Pebblebrook Hotel, Park Hotels & Resorts, Kilroy Realty, Healthpeak Properties, Sun Communities, AmeriCold Logistics, Realty Income, Crown Castle International, and Federal Realty Investment Trust.

Here are the top 10 holdings in REITs, ranked by weight:

If you're looking to invest in the best REIT stocks, you're in luck because several top-rated stocks are trading at discounts to their fair value estimates.

Healthpeak Properties is one of the best REIT stocks to buy now, trading 29% undervalued relative to its $30.50 fair value estimate. This cheap REIT stock operates in the healthcare facilities industry and offers a 5.53% forward dividend yield.

On a similar theme: Stocks and Trading

Park Hotels & Resorts is another undervalued REIT stock, trading 31% below its fair value estimate of $23 per share. With a forward dividend yield of 8.86%, it's one of the highest on our list of the best REITs to buy.

Crown Castle is the only company on our list with an economic moat, trading 24% below its $135 fair value estimate. This specialty REIT owns and leases cell towers and fiber, offering a forward dividend yield of 6.14%.

Here are the top REIT stocks to buy now, all trading at discounts of at least 20% relative to Morningstar's fair value estimates as of Dec. 9, 2024:

If you're looking for top REIT stocks to invest in, consider the following options. Pebblebrook Hotel (PEB) stands out as the least expensive company, trading 37% below Morningstar's fair value estimate of $23.50 per share.

Pebblebrook Hotel is the largest US lodging REIT focused on owning independent and boutique hotels, with a portfolio of 46 upper upscale hotels and over 11,900 rooms. Its CEO, Jon Bortz, has a deep understanding of the hotels in the portfolio, which should enable him to implement cost-saving initiatives.

Kilroy Realty (KRC) is another undervalued REIT stock, trading 30% below Morningstar's fair value estimate of $59 per share. It operates in the office industry and has a forward dividend yield of 5.19%. Kilroy's management has been able to time the boom in technological employment and has positioned the company to benefit from the burgeoning life sciences sector.

Healthpeak Properties (DOC) is 29% undervalued relative to Morningstar's $30.50 fair value estimate. It operates in the healthcare facilities industry and offers a 5.53% forward dividend yield. Healthpeak's life science and medical office portfolios are now prominently featured in the company's portfolio, with high-quality assets in top markets that attract credit-grade tenants.

Here are some key statistics on these top REIT stocks:

Keep in mind that these statistics are subject to change and are based on data from December 9, 2024.

The ex-dividend dates for this stock's dividend payments are listed below.

This stock has a history of raising its dividend payouts, even in challenging economic environments.

NNN REIT is a retail real estate investment trust that has consistently delivered strong returns for its investors. The company's portfolio is defensive, which means it's less susceptible to market fluctuations.

NNN REIT's dividend yield is a notable 5.7%, making it an attractive option for income-seeking investors. The dividend is well-covered by the company's earnings, providing a sense of security for investors.

One of the standout features of NNN REIT is its impressive dividend growth streak. The company has raised its dividend in all sorts of environments, including recessions. In fact, NNN REIT has upped its payouts in all four recessions since its IPO.

Here's a comparison of NNN REIT's performance against the S&P 500:

As you can see, NNN REIT's performance has been quite different from the S&P 500's over the past five years. However, the company's long-term track record is impressive, with a return of +8,499% since its IPO.

The real estate sector is at an inflection point in 2025, with the Federal Reserve potentially not lowering interest rates as aggressively as hoped. This could impact real estate investing decisions.

The commercial real estate market suffered significant setbacks due to the coronavirus pandemic, hampering shares of related listed real estate investment trusts (REITs).

Investing in real estate can be a smart move, especially if you're looking for a steady income stream. REITs historically have delivered competitive total returns based on high, steady dividend income.

One of the main reasons people invest in REITs is for the long-term capital appreciation they offer. Their comparatively low correlation with other assets makes them an excellent portfolio diversifier.

By including REITs in your portfolio, you can potentially reduce overall portfolio risk and increase returns. This is especially true if you're looking to balance out your investments and minimize losses.

REITs have consistently delivered high, steady dividend income, making them a great choice for income investors.

The real estate sector is at an inflection point, where the Federal Reserve might not lower interest rates as aggressively as hoped in 2025.

REITs have historically delivered competitive total returns, based on high, steady dividend income and long-term capital appreciation.

One key characteristic of REITs is their low correlation with other assets, making them an excellent portfolio diversifier that can help reduce overall portfolio risk and increase returns.

Investing in REITs can help you ride out market fluctuations and achieve more stable returns.

The commercial real estate market suffered significant setbacks due to the coronavirus pandemic, but REITs can be a good way to tap into its resurgence.

As the REITs stock price continues to fluctuate, it's essential to understand the factors driving these changes.

The COVID-19 pandemic has had a significant impact on the REITs stock price, with many REITs experiencing a decline in value due to reduced foot traffic and decreased demand for retail and hospitality properties.

In 2020, the REITs stock price plummeted by over 40% in a single quarter, a stark contrast to the 10% increase experienced in 2019.

The Federal Reserve's decision to lower interest rates in 2020 has also influenced the REITs stock price, making it more attractive for investors to buy REITs and increasing demand for these securities.

However, despite these challenges, some REITs have managed to stay afloat, with a few even experiencing a slight increase in stock price.