2 Amazing REITs I'm Buying And Never Letting Go

Core Insights - The article emphasizes the importance of selecting stocks with durable assets, competitive advantages, and strong financials for long-term investment success [1] Company Analysis: American Tower (AMT) - American Tower is the largest cell tower REIT with a network of 224,000 communications sites and a strong presence in the U.S. and internationally [2] - In Q2 2024, AMT reported property revenue growth of 4.6% YoY, adjusted EBITDA growth of 8.1% YoY, and AFFO per share growth of 13.4% YoY, driven by its core cell tower business and data center operations [2] - CoreSite, AMT's data center business, achieved its second-highest quarter of signed new business, with 60% of projects under development pre-leased, indicating strong demand [4] - Management raised the full-year AFFO per share guidance from $10.42 to$10.60, reflecting a 7.4% YoY growth [4] - AMT's capital allocation strategy has shifted, with Asia representing only 14% of 2024 capital investments, down from 35% in 2021, while data centers now comprise 34% of investment capital [5] - AMT maintains a solid balance sheet with a BBB- credit rating, a net debt to EBITDA ratio of 4.8x, and $9.2 billion in total liquidity [6] - The current dividend yield is 2.9$9.47 for the full-year 2024, representing 5.6% growth from 2023, supported by strong leasing activities [10] - ARE's balance sheet is robust, with a BBB+/Baa1 credit rating, a net debt to adjusted EBITDA ratio of 5.1x, and $5.6 billion in liquidity [10] - The current dividend yield is 4.4%, with a payout ratio of 55%, and a history of 13 consecutive years of dividend growth [10] - ARE is attractively valued at a forward P/FFO of 12.4, significantly below its historical average of 17.9 [11] Investment Summary - Both American Tower and Alexandria Real Estate present strong investment opportunities with mission-critical assets and solid financial performance [12] - AMT benefits from its extensive network and data center strategy, while ARE's strategic portfolio caters to the biotech sector, making both companies appealing for long-term investors seeking growth and income [12]