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It’s often easy to find great stocks that are performing well, but such issues can be expensive, making it difficult for the average investor to buy a large number of shares. One benefit of buying at least 100 shares is that an investor can write covered calls against the position, giving them the opportunity to earn additional income each month.
Fortunately, despite the difficulties real estate investment trusts (REITs) have faced over the past three years, it’s still possible to find top-notch REITs that aren’t too expensive. These five REITs all trade for under $30 per share, and with interest rate cuts expected in September, any of them could put money in your pocket in the coming year. Check them out:
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Tangier
Tangier Inc. (NYSE:SKT), formerly Tanger Factory Outlet Centers Inc., is a Greensboro, NC-based retail REIT that owns, co-owns or manages 40 indoor shopping centers and outdoor factory outlet malls comprising 15.6 million square feet and over 3,000 stores in 20 states and Canada. Tanger Factory Outlet Centers was founded in 1981 and had its initial public offering in May 1993. Tanger’s occupancy rate was 96.5% at the end of the second quarter of 2024.
On August 1, Tanger delivered a solid second quarter earnings report. FFO of $0.53 per share beat the consensus estimate of $0.52, revenue of $128.956 million beat the estimate of $122.216 million, and second quarter 2023 revenue of $110.641 million even beat estimates.
Tanger’s dividend yield of 3.89% is below the 5-year average of 7.26%, but with a payout ratio of 51.58%, there is plenty of room for further dividend increases. The company has a solid history of dividend growth.
Cousins characteristics
Cousins Properties Inc. (NYSE: CUZ) is an Atlanta, GA-based office REIT founded in 1958 that currently owns a portfolio of 19.1 million square feet of premier office towers in the high-growth markets of the Sun Belt.
The majority of Cousins’ portfolio consists of newer office buildings, with an average construction year of 2004. The buildings feature upscale amenities such as fitness facilities, conference rooms, wellness centers and cafes. The upgrades allow the company to charge rents approximately 24% above the Class A average in its core markets of Atlanta, Austin, Charlotte, Dallas, Phoenix and Tampa. Tenants are top-tier and diversified by industry. Occupancy in June 2024 was 90.8%, just below the pre-COVID occupancy rate of 91.1%.
On July 25, Cousins Properties reported its Q2 results. FFO of $0.68 beat the forecast of $0.66 and exceeded its Q2 2023 FFO of $0.65. Revenue of $212.978 million beat the estimate of $209.372 million and its Q2 2023 revenue of $204.320 million.
Cousins Properties also raised the midpoint of its full-year 2024 FFO forecast to $2.63 to $2.68 per share from $2.60 to $2.67. The Street estimate is $2.65.
On July 30, Barclays analyst Anthony Powell maintained his overweight position on Cousins Properties and raised the price target by 20% from $25 to $30.
Cousins Properties’ total year-to-date return is 14.95%.
Four Corners Real Estate Trust
Four Corners Property Trust Inc. (NYSE:FCPT) is a retail REIT that began in 2015 as a spinoff of Darden Restaurants Inc. (NYSE:DRI) with 418 casual dining restaurants. In just nine years, it has expanded to 1,132 properties with 154 brands in 47 states and has expanded its offerings to include fast-food restaurants, auto repair shops, and medical and dental centers. Its most recent acquisition was a Taco Bell in Illinois for $1.7 million in late July. Four Corners’ occupancy rate of 99.6% is excellent.
On July 31, Four Corners Property reported quarterly earnings of $0.43 per share, beating analysts’ consensus estimate of $0.42. Revenue of $66.48 million beat the forecast of $65.30 million and was higher than $60.69 million in the year-ago period.
Four Corners’ dividend yield is currently 5.10%.
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Kite Realty Group
Kite Realty Group Trust (NYSE:KRG) is an Indianapolis-based retail REIT with 178 open-air and mixed-use properties from Vermont to California comprising 28 million gross leasable square feet. The malls are primarily home to grocery stores, and tenants include CVS, Fresh Market, Best Buy, Burlington Coat Factory, Ross Stores and Costco. Kite Realty had its IPO in 2004.
On July 30, Kite Realty Group reported its second quarter results. FFO of $0.53 per share beat the consensus estimate of $0.50. Revenue of $212.434 million beat the forecast of $207.534 million and exceeded second quarter 2023 revenue of $208.759 million.
Analysts have been very positive about Kite Realty Group lately. On August 16, Raymond James analyst RJ Milligan upgraded Kite Realty Group from Market Perform to Outperform and announced a price target of $28. On August 20, KeyBanc analyst Todd Thomas maintained Kite Realty Group at Overweight and raised the price target to $28 from $25.
Kimco Realty Corp
Kimco Realty Corp. (NYSE:KIM) is a retail REIT based in Jericho, NY. The company owns and operates 567 open-market, grocery-attached and non-attached properties with 101 million square feet of rentable space and land leases. Kimco Realty was founded in 1958, is a member of the S&P 500, and has been publicly traded on the New York Stock Exchange (NYSE) since 1991.
Kimco Realty’s lease terms range from less than five years to 30 years or more. Occupancy in the second quarter was 96.2%.
Analysts have been mixed on Kimco lately. On August 16, Raymond James analyst RJ Milligan upgraded Kimco two notches from Market Perform to Strong Buy and announced a price target of $25. On August 19, Mizuho analyst Haendel St. Juste downgraded Kimco to Neutral from Outperform but raised the price target to $23 from $20.
Kimco Realty’s dividend yield is 4.30%. The payout ratio is quite modest at 59.6% and should allow for further dividend increases.
Are you looking for higher return opportunities?
The current high-yield environment has created an incredible opportunity for income-seeking investors to earn huge returns, but not through dividend stocks… Certain private real estate investments offer retail investors a chance to capitalize on these high-yield opportunities, and Benzinga has identified some of the most attractive options for you to consider.
For example, the Ascent Income Fund EquityMultiple’s Ascent Income Fund targets stable income from senior commercial real estate credit positions and has a historical distribution yield of 12.1%, backed by real assets. With payment priority and flexible liquidity options, the Ascent Income Fund is a cornerstone investment vehicle for income-seeking investors. First-time investors at EquityMultiple can now invest in the Ascent Income Fund with a reduced minimum of just $5,000. Benzinga readers: Earn a 1% yield boost on your first EquityMultiple investment when you sign up here (accredited investors only).
Don’t miss this opportunity to profit from high-yield investments while rates are high. Check out Benzinga’s favorite high-yield deals.
This article These 5 REITs Under $30 Could Make You Money originally appeared on Benzinga.com
