Top REITs for May 2021

Real estate investment trusts (REITs) are publicly traded companies that allow individual investors to buy shares in real estate portfolios that receive income from a variety of properties. They allow investors to easily invest in the real estate sector, which includes companies that own, develop, and manage residential, commercial, and industrial properties. Among other requirements, REITs are required to pay out at least 90% of their taxable income as dividends. A key REIT metric is funds from operations (FFO), a measure of earnings particular to the industry. Some big names within the sector include American Tower Corp. (AMT), Crown Castle International Corp. (CCI), and Prologis Inc. (PLD). Many commercial real estate companies that own office buildings and retail space have been badly hurt by the COVID-19 pandemic and economic downturn, both due to layoffs and many corporate employees working from home. However, the U.S. government’s $1.9 trillion stimulus package, passed by Congress in March 2021 could fuel a rapid economic recovery, and along with it, a rebound in commercial real estate. REITs, as represented by the Real Estate Select Sector SPDR ETF (XLRE), have significantly underperformed the broader market. XLRE’s 69.2% total return over the past 12 months is well below the general market benchmark iShares Russell 1000 ETF (IWB), which has provided a total return of 132.4%, as of April 20.2 All statistics in the tables below are also as of April 20. Here are the top 3 REITs with the best value, the fastest growth, and the most momentum. Click to read more at www.investopedia.com.