2 No-Brainer Real Estate Stocks to Buy With $1,000 Right Now

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]