In this article we will discuss what the word REITs actually mean, its acronym for Real Estate Investment Trust. What they do is, they find income producing properties and bundle them into one mainly commercial real estate since the tenancy is quite long so the cash flow can be predicted well into future. So they bundle these long term leases and property into a trust where there are property manager are there to maintain the property so owner never have to see the property them selves. Finally when the structuring aspect is done they sell these REITs at a market P/E multiplication which is very similar to how you sell your house but in this case you issue on the stock exchange depending on the value. With this method you get to invest in the booming real estate market with little amount of money while not touching the property or having to deal with tenants.
Since we are covering the UK, US, Germany market there very lucrative five REITs in the market right now offering more than 6% dividend yield.
- Triple Point Social Housing REIT plc (SOHO.L) at £0.5698 offers 9.58% dividend yield they invest in social homes.
- Sabra Health Care REIT, Inc. (SBRA) at $14.46 offers 8.30% dividend yield their investment portfolio included 377 real estate properties in the healthcare sector.
- Impact Healthcare REIT PLC (IHR.L) at £0.843 offers 8.23% dividend yield they acquires, renovates, extends and redevelops high quality healthcare real estate assets in the UK.
- Hamborner REIT AG (HABA.DE) at EUR 6.45 offers 7.41% dividend yield and they operates exclusively in the property sector and is positioned as a portfolio holder for high-yield commercial properties.
- Apple Hospitality REIT, Inc. (APLE) at $14.49 offers 6.63% dividend yield invests in income-producing real estate, primarily in the lodging sector, in the United States.
We believe these are well established companies in the REITs sector offers more than 6% return at the current share value and if the property values were to increase in the future with the interest rates coming down in the near future they are opportunity for capital gain and the lock in the higher yield that they offer at the moment before the everyone else. Be aware that these are not investing advice more of a recommendation to buy, make sure to understand the risk that you carry when investing.
We believe by the end of this year 2024, these prices will gain 25% of the current levels if you are brave to invest, if you invest £1000, our model suggested you will earn capital gain of £250 + the average dividend yield of 8.03%. We expect our subscriber to gain total of £330.3 including the dividend payment by end of 2024. that a massive gain of 33.03% per annum close to 5 times what the banks offer at the moment in the United Kingdom.
