Insider Monkeyยท2025-10-02 00:37Core Viewpoint - The article discusses the best dividend stocks in the REIT sector, highlighting their defensive nature during market volatility and the importance of predictable cash flows [1][2]. Industry Overview - REITs are primarily domestic and less exposed to international commerce, making them a defensive investment during market dislocations due to their lease-driven income and strong margins [1]. - The predictable earnings of REITs have historically resulted in good returns, particularly attractive during market volatility [2]. - Various real estate segments may be impacted differently by economic factors such as tariffs, with industrial real estate facing challenges from economic slowdowns and supply chain issues [2]. Market Activity - The office market, which suffered during the pandemic, is showing signs of recovery, with a 42% year-over-year increase in transaction volume, reaching $25.9 billion in the first half of the year [3]. Methodology - The article's methodology involved scanning a database of nearly 1,000 hedge funds to identify REIT companies that pay regular dividends, narrowing down to 12 companies popular among elite funds [5]. Company Highlights - Universal Health Realty Income Trust (NYSE: UHT): Focuses on healthcare properties, owns 76 properties across 21 states, reported an operating cash flow of $909 million, and has a dividend yield of 7.59% as of October 1 [8][9][11]. - Arbor Realty Trust, Inc. (NYSE: ABR): A mortgage REIT focusing on multifamily properties, has stable long-term cash flows, offers a quarterly dividend of $0.30 per share, and has a dividend yield of 10.75% as of October 1 [12][14]. - Innovative Industrial Properties, Inc. (NYSE: IIPR): Specializes in cannabis-related facilities, has 108 properties across 19 states, offers a quarterly dividend of $1.90 per share, and has a dividend yield of 13.75% as of October 1 [15][18].