Prologis(PLD 0.39%) has grown to be the biggest industrial real estate investment trust (REIT) in the world by dominating the e-commerce warehouse space, and in its fourth-quarter earnings report, the company continued to deliver steady growth. Sign up for an account on Arrived Homes to browse available properties and add real estate to your portfolio today. FFO is determined by taking net income and adding back various non-cash charges that are seen to artificially impair a REITs perceived ability to pay its dividend. E-Commerce Growth. Consistent with the trends seen over the last three years, the higher-valued and lower-yielding logistics-focused REITs including Terreno, Rexford and Prologis and continue to outperform with gains of more than 50% each. ProLogis Total Industrial Portfolio: 512.2 million sq. 
Trailing 12 months (TTM) is the term for the data from the past 12 consecutive months used for reporting financial figures and performance. Trends over the past several years confirm that there are indeed mounting barriers-to-entry and clear supply constraints developing through limited available land and regulatory hurdles for the most in-demand logistics-focused properties. To make the world smarter, happier, and richer. Sovereign Wealth Fund Institute and SWFI are registered trademarks of the Sovereign Wealth Fund Institute. Industrial REITs own and manage industrial facilities and rent space in those properties to tenants. Seeing 20 or 30% on some of these REITs is not crazy. Revenue was up 15% in the quarter, was up double-digits for the full year. The company anticipates continued growth during future years as the data center market continues to expand. Prologis is by far the largest industrial REIT on the market and one of the largest REITs overall. The average expirations is 10 or 11 years. Because of the monthly rental cash flows generated by REITs, these securities are well-suited to investors that aim to generate income from their investment portfolios. For now, capital investments into e-commerce logistics remains a high-priority for the majority of these major retailers and we believe that the significant long-term secular tailwinds of supply chain densification may still be in the relatively early innings. Equity Apartments. In 2015, Digital Realty Trust sold a Philadelphia building that it had previously acquired in 2005 at an expense of $59 million. Industrial REITs own roughly 5-10% of total industrial real estate assets in the United States but own a higher relative percentage of higher-value distribution-focused assets with building sizes averaging around 200,000 square feet, which have seen significant rent growth and more favorable supply/demand conditions due to tangible constraints on land availability. Jeremy Bowman owns Amazon. Four of the seven REITs that report guidance in our coverage boosted same-store NOI growth and these seven REITs now see same-store NOI growth averaging 4.6% this year and occupancy averaging 97%. Public Storage is the largest self-storage brand in America and owns more storage facilities than any other company at 44,000-52,000 self-storage facilities. Nearly 145 million Americans live in households that invest in REITs. Industrial REITS own, manage, and lease industrial properties to companies. Due to high interest expense, management provided guidance for FFO per share of $1.12-$1.20 in 2023. Similar to our favorable fundamental outlook on the residential real estate sectors, we see the trends of limited supply and robust demand continuing well into the next decade for the industrial real estate sector. 
The $2.8 billion REIT owns 111 properties in 19 states. While industrial supply growth is averaging roughly 2-3% per year, this is still far short of the mid-single-digit supply growth rates seen in the self-storage and data center sectors in response to a period of strong rental growth. Prologis segments industrial real estate assets into four major segments: Gateway Distribution, Multi-Market Distribution, City Distribution, and Last-Touch Centers. After years of relying on internal development to fuel external growth, elevated equity valuations have allowed industrial REITs to go on a buying spree. The following lists provide useful information on high dividend stocks and stocks that pay monthly dividends: Thanks for reading this article. However, the REIT is now on firmer footing and is pursuing growth opportunities. Nareitis the worldwide representative voice for REITs and publicly traded real estate companies with an interest in U.S. real estate and capital markets. Click here to download our most recent Sure Analysis report on BDN (preview of page 1 of 3 shown below): Founded in 2003, Medical Properties Trust is the only pure-play hospital REIT today. This type of REIT has generally low upkeep and maintenance costs. 10 stocks we like better than PrologisWhen our award-winning analyst team has a stock tip, it can pay to listen. There are numerous industrial REITs listed on the FTSE Nareit US Real Estate Indexes available to invest in directly, or an individual can invest through REIT mutual funds or exchange-traded funds (ETFs). Along that continuum towards the end-consumer, the relative value of these properties (on a per square foot basis) increases, as do the underlying barriers to entry. 1.90%. All the metrics, you just check it off. A market that moves in only one direction is unhealthy; it indicates that an external factor is skewing results. When the economy is good and people are making purchases, the need for these manufacturing companies and spaces is at a high. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body. Investors looking to invest in the sector through a pure-play ETF can do so through the Pacer Benchmark Industrial Real Estate SCTR ETF (INDS). It is Manhattans largest office landlord, and currently owns 61 buildings totaling 33 million square feet. This published commentary is for informational and educational purposes only. Year-over-year, it implies an increase of 20%. The portfolio of assets is also well diversified across different geographies with properties in 29 states to mitigate the risk of demand and supply imbalances in individual markets. The net loss and Adjusted EBITDA were $155.7 million and $225.1 million, respectively, for the same period. The traditional brick-and-mortar powerhouses have honed the omni-channel approach with significant success, as Walmart (WMT), Home Depot (HD), Target (TGT), and Costco (COST) have been among the biggest investors in e-commerce distribution over the last several years. Self-storage isnt an industry that will take a big hit when reality sets in. Clipper Properties owns commercial (primarily multifamily and office with a small sliver of retail) real estate across New York City. When the time is right, Arrived Homes sells the property so investors can cash in on the equity they've gained over time. Contractual rental escalations at certain properties also boosted results. Made, I think $900 million in acquisitions last year. Click here to download your Complete REIT Excel Spreadsheet List now. The end users of industrial real estate properties have become far more consumer-oriented over the past decade with nearly 80% of industrial space usage coming from consumer-oriented tenants. In this list, well be ranking each REIT according to its market capitalization, or market cap, which is the market value of its outstanding shares. Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. Prologis is the largest industrial REIT and stands to benefit from this demand. Information presented is believed to be factual and up-to-date, but we do not guarantee its accuracy and it should not be regarded as a complete analysis of the subjects discussed. This one's interesting. During this time, value has generally underperformed, underscored by weak relatively performance from the retail REIT sector. Honestly, I don't have any business concerns. Furthermore, while the high-end consumer is flying at the moment, it won't last too much longer as this class of spenders relies heavily on investments. There is no guarantee that any outlook made in this commentary will be realized. 1 CapitaLand Integrated Commercial Trust Ticker: C38U.SI Market Cap: SGD13 billion Forward Dividend Yield: 6.20% CapitaLand Integrated Commercial Trust, or CILT, after the merger of CapitaLand Mall Trust and CapitaLand Commercial Trust, is the biggest REIT in Singapore. The company spent $1.9 billion acquiring industrial buildings in 2021, bringing its total portfolio to 296 properties with 37.1 million square feet of space in key in-fill Southern California last-mile submarkets. I believe it's in the world, definitely in the U.S. While these names pay the highest yields, it should be noted that they do so by allocating a higher share of free cash flow towards dividend payments and generally have exhibited more limited growth potential than the lower-yielding names. Great year last year, spent a lot of money. Fortunately, Simon Property Group also relies on premium outlets, which have been performing well. All commentary published by Hoya Capital Real Estate is available free of charge and is for informational purposes only and is not intended as investment advice. While we noted that long-term competitive dynamics may shift over time to become less favorable and that there are near-term pressures from slowing global growth, we believe that industrial REITs will retain significant pricing power and recognize growth rates near the top of the REIT sector average for at least the next half-decade. They have a really strong balance sheet. SEGRO Europes #1 Industrial REIT. For 60 years, Nareit has led the U.S. REIT industry by ensuring its members best interests are promoted by providing unparalleled advocacy, investor outreach, continuing education and networking. As we discussed in our last report, considering the massive presence of Amazon, there's also risk to industrial REITs that large tenants like Amazon could increasingly dictate the terms of the relationship, which could weaken pricing power. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. -3.63%. Companies such as Amazon, Home Depot, and Walmart rely on these REITs for last-mile delivery and distribution. Hoya Capital Research & Index Innovations is an affiliate that provides non-advisory services including research and index administration focused on publicly traded securities in the real estate industry. For an example of how FFO is calculated, consider the following net income-to-FFO reconciliation from Realty Income (O), one of the largest and most popular REIT securities. Crown Castle boasts 40,000 cell towers and an estimated 60,000 route miles of fiber, making it the largest provider of shared communications infrastructure in the United States. Rexford Industrial They are in the catbird seat to participate in all of the things that are going to happen there. Historically, there has been a tight (lagged) correlation between same-store NOI growth and the size of the REIT development pipeline. A timeshare is a shared ownership model of vacation real estate in which multiple buyers own the rights to use the same property at different times. SWFI facilitates sovereign fund, pension, endowment, superannuation fund and central bank events around the world. The Los Angeles-based REIT announced that it acquired three more industrial properties for a combined $357.2 million, bringing its year-to-date investment to $762 million, and putting Rexford on pace to clear the $3 billion mark in 2023 if the rapid rate of Step 3: Use the filter functions Greater Than or Equal To and Less Than or Equal To along with the numbers 0.05 ad 0.07 to display REITs with dividend yields between 5% and 7%. The trust leased 772,000 square feet in the quarter and its multifamily portfolio remained essentially fully leased. Moreover, the proximity to premier housing attracts affluent tenants, who offer reliable cash flows to the company. Depreciation and amortization expenses reduce a companys net income, which means that sometimes a REITs dividend will be higher than its net income, even though its dividends are safe based on cash flow. In acquisitions, $900 million in acquisitions last year. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fools board of directors. Search current real estate investment offerings based on your criteria with Benzinga's New Alternative Investments Screener. Ironically, the more worrying trends for industrial REITs are related to a Retail Apocalypse 2.0, as store closings have unexpectedly surged in 2019 as the combination of higher minimum wages, tariff-related cost pressures, and heavy discounting have pressured margins at softline and specialty retailers. The Weyerhaeuser Company was founded by Frederick Weyerhaeuser, a German-born immigrant and sawmill worker. Net loss attributable to common shares was $155.9 million for the period, and includes a $216.0 million goodwill impairment charge related to the Uniti Fiber segment that was driven by an increase in the macro interest rate environment. They may buy or build spaces to be used for production, manufacturing, and distributing goods. Same-store occupancy reached a new record-high at the end of 2017 and has remained above 96% through the first three quarters of 2019 according to NAREIT T-Tracker data. The construction and operational expenses are more reasonable than other types of commercial real estate. REITs, more formally known as real estate investment trusts, are companies that own and operate income-producing real estate. Because the industry is in the midst of a legal transition, there are constraints on capital available to businesses engaged in the marijuana business. Listed on the S&P 500 since 2001, Equity Residential saw its apartment ownership skyrocket during the following years. Ventas hasshown consistent growthon the top and bottom lines over the past three fiscal years (all numbers in thousands): AvalonBay Communities Inc. (AVB) develops, redevelops, acquires, owns and operates multifamily communities.. Consolidated revenues were $283.1 million. Below we outline the five reasons that investors are bearish on the sector. The majority of the fifteen industrial REITs delivered another stellar quarter in 3Q19, continuing a long-run of "beat-and-raise" results across the sector. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services. Read about how to find lucrative investments, jobs, and business opportunities. The Los Angeles-based REIT announced that it acquired three more
Trailing 12 months (TTM) is the term for the data from the past 12 consecutive months used for reporting financial figures and performance. Trends over the past several years confirm that there are indeed mounting barriers-to-entry and clear supply constraints developing through limited available land and regulatory hurdles for the most in-demand logistics-focused properties. To make the world smarter, happier, and richer. Sovereign Wealth Fund Institute and SWFI are registered trademarks of the Sovereign Wealth Fund Institute. Industrial REITs own and manage industrial facilities and rent space in those properties to tenants. Seeing 20 or 30% on some of these REITs is not crazy. Revenue was up 15% in the quarter, was up double-digits for the full year. The company anticipates continued growth during future years as the data center market continues to expand. Prologis is by far the largest industrial REIT on the market and one of the largest REITs overall. The average expirations is 10 or 11 years. Because of the monthly rental cash flows generated by REITs, these securities are well-suited to investors that aim to generate income from their investment portfolios. For now, capital investments into e-commerce logistics remains a high-priority for the majority of these major retailers and we believe that the significant long-term secular tailwinds of supply chain densification may still be in the relatively early innings. Equity Apartments. In 2015, Digital Realty Trust sold a Philadelphia building that it had previously acquired in 2005 at an expense of $59 million. Industrial REITs own roughly 5-10% of total industrial real estate assets in the United States but own a higher relative percentage of higher-value distribution-focused assets with building sizes averaging around 200,000 square feet, which have seen significant rent growth and more favorable supply/demand conditions due to tangible constraints on land availability. Jeremy Bowman owns Amazon. Four of the seven REITs that report guidance in our coverage boosted same-store NOI growth and these seven REITs now see same-store NOI growth averaging 4.6% this year and occupancy averaging 97%. Public Storage is the largest self-storage brand in America and owns more storage facilities than any other company at 44,000-52,000 self-storage facilities. Nearly 145 million Americans live in households that invest in REITs. Industrial REITS own, manage, and lease industrial properties to companies. Due to high interest expense, management provided guidance for FFO per share of $1.12-$1.20 in 2023. Similar to our favorable fundamental outlook on the residential real estate sectors, we see the trends of limited supply and robust demand continuing well into the next decade for the industrial real estate sector. The $2.8 billion REIT owns 111 properties in 19 states. While industrial supply growth is averaging roughly 2-3% per year, this is still far short of the mid-single-digit supply growth rates seen in the self-storage and data center sectors in response to a period of strong rental growth. Prologis segments industrial real estate assets into four major segments: Gateway Distribution, Multi-Market Distribution, City Distribution, and Last-Touch Centers. After years of relying on internal development to fuel external growth, elevated equity valuations have allowed industrial REITs to go on a buying spree. The following lists provide useful information on high dividend stocks and stocks that pay monthly dividends: Thanks for reading this article. However, the REIT is now on firmer footing and is pursuing growth opportunities. Nareitis the worldwide representative voice for REITs and publicly traded real estate companies with an interest in U.S. real estate and capital markets. Click here to download our most recent Sure Analysis report on BDN (preview of page 1 of 3 shown below): Founded in 2003, Medical Properties Trust is the only pure-play hospital REIT today. This type of REIT has generally low upkeep and maintenance costs. 10 stocks we like better than PrologisWhen our award-winning analyst team has a stock tip, it can pay to listen. There are numerous industrial REITs listed on the FTSE Nareit US Real Estate Indexes available to invest in directly, or an individual can invest through REIT mutual funds or exchange-traded funds (ETFs). Along that continuum towards the end-consumer, the relative value of these properties (on a per square foot basis) increases, as do the underlying barriers to entry. 1.90%. All the metrics, you just check it off. A market that moves in only one direction is unhealthy; it indicates that an external factor is skewing results. When the economy is good and people are making purchases, the need for these manufacturing companies and spaces is at a high. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body. Investors looking to invest in the sector through a pure-play ETF can do so through the Pacer Benchmark Industrial Real Estate SCTR ETF (INDS). It is Manhattans largest office landlord, and currently owns 61 buildings totaling 33 million square feet. This published commentary is for informational and educational purposes only. Year-over-year, it implies an increase of 20%. The portfolio of assets is also well diversified across different geographies with properties in 29 states to mitigate the risk of demand and supply imbalances in individual markets. The net loss and Adjusted EBITDA were $155.7 million and $225.1 million, respectively, for the same period. The traditional brick-and-mortar powerhouses have honed the omni-channel approach with significant success, as Walmart (WMT), Home Depot (HD), Target (TGT), and Costco (COST) have been among the biggest investors in e-commerce distribution over the last several years. Self-storage isnt an industry that will take a big hit when reality sets in. Clipper Properties owns commercial (primarily multifamily and office with a small sliver of retail) real estate across New York City. When the time is right, Arrived Homes sells the property so investors can cash in on the equity they've gained over time. Contractual rental escalations at certain properties also boosted results. Made, I think $900 million in acquisitions last year. Click here to download your Complete REIT Excel Spreadsheet List now. The end users of industrial real estate properties have become far more consumer-oriented over the past decade with nearly 80% of industrial space usage coming from consumer-oriented tenants. In this list, well be ranking each REIT according to its market capitalization, or market cap, which is the market value of its outstanding shares. Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. Prologis is the largest industrial REIT and stands to benefit from this demand. Information presented is believed to be factual and up-to-date, but we do not guarantee its accuracy and it should not be regarded as a complete analysis of the subjects discussed. This one's interesting. During this time, value has generally underperformed, underscored by weak relatively performance from the retail REIT sector. Honestly, I don't have any business concerns. Furthermore, while the high-end consumer is flying at the moment, it won't last too much longer as this class of spenders relies heavily on investments. There is no guarantee that any outlook made in this commentary will be realized. 1 CapitaLand Integrated Commercial Trust Ticker: C38U.SI Market Cap: SGD13 billion Forward Dividend Yield: 6.20% CapitaLand Integrated Commercial Trust, or CILT, after the merger of CapitaLand Mall Trust and CapitaLand Commercial Trust, is the biggest REIT in Singapore. The company spent $1.9 billion acquiring industrial buildings in 2021, bringing its total portfolio to 296 properties with 37.1 million square feet of space in key in-fill Southern California last-mile submarkets. I believe it's in the world, definitely in the U.S. While these names pay the highest yields, it should be noted that they do so by allocating a higher share of free cash flow towards dividend payments and generally have exhibited more limited growth potential than the lower-yielding names. Great year last year, spent a lot of money. Fortunately, Simon Property Group also relies on premium outlets, which have been performing well. All commentary published by Hoya Capital Real Estate is available free of charge and is for informational purposes only and is not intended as investment advice. While we noted that long-term competitive dynamics may shift over time to become less favorable and that there are near-term pressures from slowing global growth, we believe that industrial REITs will retain significant pricing power and recognize growth rates near the top of the REIT sector average for at least the next half-decade. They have a really strong balance sheet. SEGRO Europes #1 Industrial REIT. For 60 years, Nareit has led the U.S. REIT industry by ensuring its members best interests are promoted by providing unparalleled advocacy, investor outreach, continuing education and networking. As we discussed in our last report, considering the massive presence of Amazon, there's also risk to industrial REITs that large tenants like Amazon could increasingly dictate the terms of the relationship, which could weaken pricing power. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. -3.63%. Companies such as Amazon, Home Depot, and Walmart rely on these REITs for last-mile delivery and distribution. Hoya Capital Research & Index Innovations is an affiliate that provides non-advisory services including research and index administration focused on publicly traded securities in the real estate industry. For an example of how FFO is calculated, consider the following net income-to-FFO reconciliation from Realty Income (O), one of the largest and most popular REIT securities. Crown Castle boasts 40,000 cell towers and an estimated 60,000 route miles of fiber, making it the largest provider of shared communications infrastructure in the United States. Rexford Industrial They are in the catbird seat to participate in all of the things that are going to happen there. Historically, there has been a tight (lagged) correlation between same-store NOI growth and the size of the REIT development pipeline. A timeshare is a shared ownership model of vacation real estate in which multiple buyers own the rights to use the same property at different times. SWFI facilitates sovereign fund, pension, endowment, superannuation fund and central bank events around the world. The Los Angeles-based REIT announced that it acquired three more industrial properties for a combined $357.2 million, bringing its year-to-date investment to $762 million, and putting Rexford on pace to clear the $3 billion mark in 2023 if the rapid rate of Step 3: Use the filter functions Greater Than or Equal To and Less Than or Equal To along with the numbers 0.05 ad 0.07 to display REITs with dividend yields between 5% and 7%. The trust leased 772,000 square feet in the quarter and its multifamily portfolio remained essentially fully leased. Moreover, the proximity to premier housing attracts affluent tenants, who offer reliable cash flows to the company. Depreciation and amortization expenses reduce a companys net income, which means that sometimes a REITs dividend will be higher than its net income, even though its dividends are safe based on cash flow. In acquisitions, $900 million in acquisitions last year. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fools board of directors. Search current real estate investment offerings based on your criteria with Benzinga's New Alternative Investments Screener. Ironically, the more worrying trends for industrial REITs are related to a Retail Apocalypse 2.0, as store closings have unexpectedly surged in 2019 as the combination of higher minimum wages, tariff-related cost pressures, and heavy discounting have pressured margins at softline and specialty retailers. The Weyerhaeuser Company was founded by Frederick Weyerhaeuser, a German-born immigrant and sawmill worker. Net loss attributable to common shares was $155.9 million for the period, and includes a $216.0 million goodwill impairment charge related to the Uniti Fiber segment that was driven by an increase in the macro interest rate environment. They may buy or build spaces to be used for production, manufacturing, and distributing goods. Same-store occupancy reached a new record-high at the end of 2017 and has remained above 96% through the first three quarters of 2019 according to NAREIT T-Tracker data. The construction and operational expenses are more reasonable than other types of commercial real estate. REITs, more formally known as real estate investment trusts, are companies that own and operate income-producing real estate. Because the industry is in the midst of a legal transition, there are constraints on capital available to businesses engaged in the marijuana business. Listed on the S&P 500 since 2001, Equity Residential saw its apartment ownership skyrocket during the following years. Ventas hasshown consistent growthon the top and bottom lines over the past three fiscal years (all numbers in thousands): AvalonBay Communities Inc. (AVB) develops, redevelops, acquires, owns and operates multifamily communities.. Consolidated revenues were $283.1 million. Below we outline the five reasons that investors are bearish on the sector. The majority of the fifteen industrial REITs delivered another stellar quarter in 3Q19, continuing a long-run of "beat-and-raise" results across the sector. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services. Read about how to find lucrative investments, jobs, and business opportunities. The Los Angeles-based REIT announced that it acquired three more