Investing in real estate can be a terrific way to make passive income. Tenants pay rent, which should cover all property expenses with room to spare, providing the landlord with income. One of the easiest ways to make passive income from real estate is to invest in a real estate investment trust (REIT). These companies own portfolios of income-generating real estate. They distribute a portion of that income to shareholders via dividend payments. VICI Properties (VICI -0.32%) is a top REIT to buy for passive ...

Group 1: Passive Income through REITs - Investing in real estate investment trusts (REITs) with high dividend yields can generate significant passive income, with an example showing an investment of $11,250 yielding over $1,000 annually [1] - The selected REITs include AGNC Investment, Realty Income, Healthpeak Properties, and EPR Properties, all of which pay monthly dividends, making them suitable for regular income [1][13] Group 2: AGNC Investment - AGNC Investment is a mortgage REIT that invests in residential mortgage-backed securities (MBS) backed by government agencies, making it a low-risk investment [2] - The company employs leverage to enhance returns, with potential returns in the low 20% range, sufficient to cover dividends and operating expenses [4] - AGNC has a higher risk profile due to market condition fluctuations that could affect returns and dividend maintenance [5] Group 3: Realty Income - Realty Income is known for its reliability, having declared its 659th consecutive monthly dividend and increased payments for 110 straight quarters, with a 4.3% compound annual growth rate [6][8] - The REIT's diversified portfolio of net lease properties provides stable rental income, as tenants cover all operating expenses [7] Group 4: Healthpeak Properties - Healthpeak Properties focuses on healthcare real estate, owning outpatient medical, lab, and senior housing properties, benefiting from the aging U.S. population [9][10] - The company has a strong financial profile, allowing for new investments, with $500 million to $1 billion available for expansion [10] Group 5: EPR Properties - EPR Properties specializes in experiential real estate, including movie theaters and fitness venues, generating steady rental income through net leases [11] - The REIT plans to invest $200 million to $300 million annually in new properties, with projects lined up to drive 3% to 4% annual cash flow growth [12]

Core Viewpoint - Investing in high-yielding dividend stocks, such as EPR Properties, can provide significant passive income opportunities due to their attractive dividend yields and stable cash flows [1][2]. Company Overview - EPR Properties is a real estate investment trust (REIT) focusing on experiential real estate, including movie theaters, eat-and-play venues, and fitness properties [4]. - The REIT currently offers a dividend yield close to 7%, which translates to nearly $350 of annual passive income from a $5,000 investment [2]. Financial Performance - EPR Properties expects to generate between $5 and $5.16 per share of funds from operations (FFO) in 2025, marking a 4.3% increase from the previous year [5]. - The company pays a monthly dividend of $0.295 per share, resulting in an annual payout of $3.54 and a dividend payout ratio of approximately 70% [5]. Investment Strategy - The REIT plans to invest between $200 million and $300 million in its portfolio this year, with $37.7 million already invested in the first quarter [9]. - Recent investments include a $14.3 million attraction property in New Jersey and various build-to-suit projects [9][10]. Asset Management - EPR Properties is strategically reducing its exposure to theater and educational sectors by selling properties, with plans to sell $80 million to $120 million worth of properties this year [11]. - The company has secured $148 million in experiential development and redevelopment projects to be funded over the next two years [10]. Growth Outlook - The current investment strategy is expected to support a 3% to 4% annual growth rate in FFO per share, which should align with a similar growth rate in dividends [12]. - If interest rates decline, the company may increase its investment rate, potentially accelerating growth [12]. Dividend Stability - EPR Properties' portfolio generates stable rental income, allowing for consistent monthly dividends and funding for portfolio expansion [13]. - The combination of stable cash flow, a conservative payout ratio, and a strong balance sheet underpins the REIT's high-yielding dividend [7].

Core Viewpoint - Vici Properties has demonstrated superior growth compared to its peers, with a 7% compound annual growth rate in dividend payments since its inception, significantly outpacing the 2% average of other triple net REITs [1] Group 1: Growth Strategy - The company's focus on strategic partnerships is a crucial driver of its above-average growth, enabling portfolio expansion and increased cash flow [2] - Vici Properties invests in experiential real estate sectors such as gaming, hospitality, and entertainment, positioning itself as a partner rather than just a landlord [3] - Long-standing partnerships with major operators, including Caesars Entertainment and MGM Resorts, enhance revenue generation through steady rental income [4][5] Group 2: Capital Support and Investment Opportunities - Vici Properties provides additional capital to tenants for expansion through various means, including sale-leaseback transactions and loans, creating mutually beneficial partnerships [6] - The company has supported Great Wolf Lodge with over $720 million in capital since 2021 and provided $700 million for renovations at The Venetian Las Vegas, leading to increased rental income [7] Group 3: New Partnerships and Growth Projections - Vici Properties is actively seeking new partnerships, having established two significant relationships this year that will drive future growth [8] - The partnership with Cain International involves a $300 million mezzanine loan for the development of One Beverly Hills, a luxury mixed-use project [9] - A collaboration with Red Rock Resorts includes up to $510 million in funding for a tribal casino in California, marking Red Rock's first partnership with a REIT [10] Group 4: Financial Outlook - The company's success in forming new partnerships has led to an increase in its guidance for adjusted funds from operations (FFO), now projected to be between $2.33 and $2.36 per share, reflecting a 4.4% growth at the high end [11][12] - With a 5.5% yielding dividend, the total return could approach 10% if stock prices align with earnings growth, supporting continued dividend increases [12] Group 5: Overall Strategy Effectiveness - Vici Properties' strategy of partnering with leading operators continues to yield rising rental income and new investment opportunities, enhancing portfolio growth and shareholder value [13]