Avoid Meme Stocks, Invest The 'REIT' Way

Group 1: Meme Stocks and Market Trends - Meme stocks, including GameStop, AMC, and others, are experiencing renewed attention, reminiscent of the 2021 trading frenzy, with GameStop's stock price jumping from $17.45 to over $30 and peaking at $55.69 [1] - Analysts express skepticism about the sustainability of this meme stock revival, suggesting it may not last as long as previous surges [1] - The focus remains on sustainable investment trends rather than speculative stocks, with a preference for assets that are trading at fair value [1] Group 2: REIT Investment Insights - Cohen & Steers' recent research highlights three reasons to invest in listed REITs: they outperform stocks and bonds in low yield and growth environments, many commercial real estate sectors are seeing healthy demand amid constrained supply, and REIT valuations are significantly below historical medians [2][4] - The analysis indicates that U.S. REITs have historically delivered 19.5% average annualized monthly returns during periods of slowing growth and ending rate-hiking cycles [2] Group 3: Rexford Industrial Realty, Inc. (REXR) - Rexford Industrial Realty is identified as a top-tier REIT currently trading at a discount, with a market cap of approximately $9.8 billion and a portfolio of 422 properties in Southern California [6][7] - The company has demonstrated strong performance with an average adjusted funds from operations (AFFO) growth rate of nearly 14% since 2016, supported by a fortress-like balance sheet [7][8] - Despite facing challenges in the industrial market, particularly in Southern California, Rexford's focus on smaller properties for first and last-mile distribution positions it well for future demand [15][18] Group 4: CTO Realty Growth, Inc. (CTO) - CTO Realty Growth specializes in multi-tenant retail properties, primarily in the Sunbelt region, with a market cap of approximately $403.6 million and a portfolio of 20 income-producing properties [22][23] - The company has seen significant growth in its retail-focused portfolio, increasing from 1.8 million square feet in 2019 to 3.9 million square feet in 2024, with annualized base rent rising from $27.6 million to $80.6 million [26] - Analysts rate CTO Realty Growth as a Strong Buy, noting its 8.71% dividend yield and a well-covered AFFO payout ratio of 79.58% [32] Group 5: NETSTREIT Corp. (NTST) - NETSTREIT Corp. focuses on single-tenant retail properties leased to high-quality tenants, with a market cap of approximately $1.3 billion and a portfolio of 11.3 million square feet [35] - The company has a strong tenant base, with 71.1% of its annual base rent coming from investment-grade tenants, and reported an occupancy rate of 100% [35][37] - Analysts expect AFFO growth to normalize, projecting increases of 3% in 2024 and 6% in 2025, with a current dividend yield of 4.60% [38]