Back to top

Image: Bigstock

Zacks Market Edge Highlights: Omega Healthcare Investors, Innovative Industrial Properties, Arbor Realty Trust, GEO Group and Macerich

Read MoreHide Full Article

For Immediate Release

Chicago, IL – May 30, 2019 – Zacks Market Edge is a podcast hosted weekly by cks Stock Strategist Tracey Ryniec. Every week, Tracey will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life. To listen to the podcast, click here:

(Please use the Soundcloud link from this URL for the PR. Thanks: https://www.zacks.com/stock/news/421765/are-reits-the-hottest-stocks-of-2019)

Are REITs the Hottest Stocks of 2019?

Welcome to Episode #179 of the Zacks Market Edge Podcast.

Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life.

In this episode, Tracey is joined by Zacks Account Manager, Nico Yokosawa, to discuss one of the hottest industries of 2019: REITs.

After Nico appeared on a prior episode of the podcast to discuss lottery stocks, it turns out that what he really wanted to discuss was REITs, or Real Estate Investment Trusts.

A REIT allows investors to buy shares in a commercial real estate portfolio. These can be in a lot of different areas such as apartments, hotels, malls, warehouses and assisted living centers.

REITs are required by the IRS to return a minimum of 90% of its taxable income back to shareholders each year. Hence, the reason REITs pay dividends.

Great Performance in 2019

Most investors think of REITs as slow growth names that pay big dividends. You’re not in it to trade it, you’re in it to own for the long haul. 

It’s a way to own real estate without having much capital or without having to be a landlord.

But in 2019, the REITs, as an industry, have outperformed.

Year-to-date, REITs have returned 19.6% compared to the S&P 500 (IVV) at 13.2%.

REITs have the sizzle this year.

How Do You Find “Good” REITs to Invest in?

There are 116 REITs in the REIT industry category on Zacks.com. That’s a lot of names to look through. How can investors narrow it?

Start with the industry and then screen for the Zacks Rank, which should get you rising earnings estimates.

Currently, there are only 2 Zacks Rank #1 (Strong Buy) stocks so that’s not really going to get you very far.

Several of Zacks trading portfolios and newsletters will hold REITs as well. If you’re a subscriber, that’s another way to find them.

5 REIT Stock Ideas

1.       Omega Healthcare Investors (OHI - Free Report) is in skilled nursing and assisted living facilities in the US and the UK. It has paid an annual dividend since 2003. The current yield is 7.6%. Nico owns shares of it in his personal portfolio.

2.       Innovative Industrial Properties (IIPR - Free Report) is one cannabis company that actually has earnings. This small cap company has sky-high earnings growth and a 2.1% yield. But it doesn’t come cheap, with a forward P/E of 33.

3.       Arbor Realty Trust (ABR - Free Report) is one of the Zacks Rank #1 (Strong Buy) REITs. It provides loan origination and servicing for multifamily, senior housing, healthcare and other commercial real estate assets. It manages a multi-billion-dollar servicing portfolio. Arbor has a forward P/E of 10.6 and pays a dividend yielding 7.9%.

4.       GEO Group (GEO - Free Report) is the other Zacks Rank #1 (Strong Buy) REIT. It offers correctional, detention and residential treatment services to government agencies around the globe. It has a market cap of $2.7 billion. Investors will get a dividend yielding 8.7%.

5.       Macerich (MAC - Free Report) operates in the major retail real estate, including trophy properties such as premium outlet malls. The CEO has been buying shares recently as they have dipped near 52-week lows. The mall is a tough place to be right now. This REIT pays a dividend yielding 7.5%.

REITs can offer you more diversification than you might think.

For instance, if you want to own farmland, there’s a REIT for that.

The same is true for data centers and cell phone towers.

What else do you need to know about REITs?

Tune into this week’s podcast to find out.

Breakout Biotech Stocks with Triple-Digit Profit Potential

The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.

Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +98%, +119% and +164% in as little as 1 month. The stocks in this report could perform even better.

See these 7 breakthrough stocks now>>

Follow us on Twitter:  https://twitter.com/zacksresearch

Join us on Facebook:  https://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts

Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.

Media Contact

Zacks Investment Research

800-767-3771 ext. 9339

support@zacks.com

https://www.zacks.com/performance

Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.

Published in