Some REITs are better than others for those seeking a sustainable income stream. Real estate investment trusts (REITs) can be great income-producing investments. They tend to offer much higher dividend yields (4% on average these days compared to a sub-1.5% dividend yield on the S&P 500). Meanwhile, the best ones aim to consistently increase their payments. W.P. Carey (WPC 2.25%) and EPR Properties (EPR 1.95%) are ideal REITs for those seeking a sustainable and growing income stream. They're much better opt ...

Flashpop/DigitalVision via Getty Images Co-authored by Treading Softly. When you decide to give somebody a gift, you can often choose between two categories. The first category includes tangible items such as a book, a set of skis, or a television. The second category includes experiences such as an annual pass to your local zoo, free movie tickets, or a membership to a ski resort. When it comes to owning real estate, there are two major types of properties that can exist. There's the real estate that is ba ...

EPR Properties (EPR) reported $145.09 million in revenue for the quarter ended June 2024, representing a yearover-year decline of 4.5%. EPS of $1.20 for the same period compares to $0.10 a year ago. The reported revenue represents a surprise of +1.37% over the Zacks Consensus Estimate of $143.13 million. With the consensus EPS estimate being $1.21, the EPS surprise was -0.83%. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Str ...

EPR Properties (EPR) came out with quarterly funds from operations (FFO) of $1.20 per share, missing the Zacks Consensus Estimate of $1.21 per share. This compares to FFO of $1.31 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an FFO surprise of -0.83%. A quarter ago, it was expected that this real estate investment trust would post FFO of $1.14 per share when it actually produced FFO of $1.12, delivering a surprise of -1.75%. Over the last four qu ...

The current level reflects no revision in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over this period. According to the collective judgment of analysts, 'Depreciation and amortization' should come in at $41.08 million. The estimate compares to the year-ago value of $43.71 million. Wall Street analysts forecast that EPR Properties (EPR) will report quarterly earnings of $1.21 p ...

Core Insights - Rising interest rates negatively impact real estate stocks, leading to lower REIT prices due to the inverse relationship between price and yield [1] - The real estate sector has seen a negative 15% total return since early 2022, while the S&P 500 has gained 24% during the same period [2] - EPR Properties and Realty Income are currently trading at significant discounts of 48% and 30% below their all-time highs, respectively, presenting potential investment opportunities [3] EPR Properties - EPR Properties focuses on experiential properties, with nearly 40% of its rent coming from movie theaters, which are perceived as a risk [5] - The company is diversifying its portfolio away from theaters by selling properties and acquiring new types, with a $100 billion investable universe of experiential properties [6] - EPR offers a well-covered 7.7% dividend yield paid monthly, supported by a strong balance sheet [6] Realty Income - Realty Income, established in 1969, owns over 15,400 properties primarily in retail, with a focus on high-quality tenants and long-term leases [7][8] - The company has generated 13.6% annualized returns since going public in 1994, outperforming the S&P 500, and has a 5.7% dividend yield with a history of increasing dividends for 107 consecutive quarters [9] - Both EPR Properties and Realty Income are positioned to benefit from falling interest rates, which could enhance their valuations and borrowing capabilities [10]

4 ar HQS 1 8 1 1 It's rare that I come across stocks with a 7% yield plus that I would actually consider adding to my portfolio. I consider myself a dividend growth investor more than anything, looking for opportunities to buy stocks that have a history of sustainably increasing dividend payments that are trading at a good value. For example, I own Altria Group (MO) in my portfolio. As I've mentioned before in a previous article, Altria has a rare combination of high starting yield, a history of dividend gr ...

Core Viewpoint - The REIT sector has underperformed since the Federal Reserve began raising interest rates in 2022, with a total return of -21.53%, while the S&P 500 has returned 19.24% during the same period [1][2] Group 1: REIT Sector Performance - Despite the overall poor performance, many REITs show strong fundamentals, including high occupancy levels, solid balance sheets, and growing rents [2] - Few REITs have cut dividends, and those that have are positioned for growth, making the sector opportunistic for capital allocation [2] Group 2: W. P. Carey (WPC) - WPC is a diversified triple net lease REIT with significant exposure to the U.S. and Europe, featuring a 99.1% occupancy rate and a weighted average lease term of 12.2 years [3] - 54% of its rent is linked to CPI, providing resilience in high-inflation environments, and it has a BBB+ credit rating with $2.8 billion in liquidity [3] - WPC trades at a 6.3% forward dividend yield and a low price-to-AFFO ratio of 11.66 times, indicating a margin of safety [3] Group 3: EPR Properties (EPR) - EPR has a higher risk profile with 37% of its portfolio in theaters but is diversifying by selling assets and investing in other types [4][5] - It offers an 8.3% dividend yield and trades at an 18% discount to NAV, with a price-to-AFFO ratio of 8.46 times [4][6] - EPR's portfolio has a 99% occupancy rate and a 12-year weighted average lease term, with a well-covered dividend payout ratio of 75% [5][6] Group 4: Realty Income (O) - Realty Income focuses on essential retail properties and has a long track record of dividend growth, with a 4.3% CAGR over 30 years [7] - It has a 6% dividend yield and is positioned to deliver an 8% annualized total return, with potential for higher returns through growth [7] - Realty Income trades at a 12.55 times price-to-AFFO multiple, significantly lower than its historical averages, and has a strong credit rating of A- [7] Group 5: Investor Takeaway - The REIT sector presents significant opportunities due to attractive valuations and strong fundamentals [8] - W. P. Carey is favored for its balanced risk-return profile, while EPR Properties is suitable for aggressive investors, and Realty Income is ideal for retirees seeking safety and yield [8]

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Group 1: Realty Income - Realty Income is known as "The Monthly Dividend Company" and has a diversified portfolio of properties leased to tenants across various industries [1] - The stock has decreased by 12% over the past year, resulting in a dividend yield of 5.8%, which is significantly higher than the market average of 1.35% [2] - Approximately 90% of Realty Income's rent comes from tenants with resilient businesses, with 73% of its portfolio leased to companies in nondiscretionary and service-oriented retail [3] Group 2: EPR Properties - EPR Properties aims to diversify its portfolio to reduce reliance on the movie theater segment, which contributed 37% of its annualized adjusted earnings in Q1 2024, down from 41% in Q1 2023 [5] - The company plans to invest an additional $220 million over the next two years to further diversify its holdings [5] - EPR Properties has faced challenges due to the pandemic but has recently reinstated its dividend at a lower level, currently yielding 8.1% [10] Group 3: Dividend Investment Appeal - Reliable monthly dividend payouts are attractive to investors, providing both share price appreciation and regular distributions [6] - Companies with sustainable dividends and potential for growth are recommended for investors' portfolios [7] - Both Realty Income and EPR Properties offer reliable monthly dividends, appealing to investors seeking income rather than rapid share price growth [11]