In a Volatile Market, Investors Should Consider These 3 REITs

Core Insights - The article discusses the stability and high yields of real estate investment trusts (REITs) compared to growth stocks, highlighting their lower volatility and diverse investment opportunities in real estate sectors [1]. Group 1: Digital Realty Trust - Digital Realty Trust is a leader in the data center sector, serving over 5,000 customers across more than 300 data centers, facilitating web hosting, data storage, and cloud computing [5]. - The company has a market capitalization of $53 billion, with a current share price of $152.89 and a dividend yield of 3.19% [6]. - Despite a 14% decline in share value this year, Digital Realty Trust has reported double-digit revenue growth and rising margins, with a significant $18.2 billion in debt being managed through cash flow generation [7]. - The company closed the third quarter with an $852 million backlog and has consistently raised its forecasts for revenue and adjusted EBITDA for 2025 [8]. Group 2: Welltower - Welltower is a healthcare REIT that owns over 2,000 senior and wellness housing communities, having tripled its stock value over the past five years [9]. - The current market capitalization is $131 billion, with a share price of $190.47 and a dividend yield of 1.6% [10]. - Revenue surged by over 30% year-over-year in the third quarter, with operating income rising 59% to $293.1 million, driven by strong gains in residential fees and rental income [11]. Group 3: Rexford Industrial Realty - Rexford Industrial Realty focuses on industrial properties in Southern California, boasting high net profit margins around 30% and a 96.8% occupancy rate across its portfolio [12][13]. - The current market capitalization is $9.6 billion, with a share price of $41.13 and a dividend yield of 4.15% [13]. - The stock is currently about 10% below its 52-week high but has increased by approximately 7% year-to-date, indicating resilience in its key locations [14]. - Although it does not have a history of outperforming the S&P 500, Rexford offers a high yield and has reliable long-term tenants [15].