Real estate stocks, particularly real estate investment trusts (REITs), provide a cost-effective method for investors to access the real estate market without the need for direct property ownership. Notably, REITs are known for delivering high dividends, as they are obligated to distribute at least 90% of their taxable income to shareholders, primarily through dividend payments. For those interested in this investment avenue, here are three top real estate stocks to consider for April 2024.
Forestar Group (NYSE:FOR) is a company that specializes in owning residential lots. These are primarily for single-family homes and span across 23 states. In the 2023 fiscal year, the company managed to sell approximately 14,000 lots.
The Q2 2024 earnings report for Forestar Group showed an 11% increase in total revenue and a significant 67% rise in net income compared to the previous year. Additionally, the number of residential lots sold saw a 10% increase. The company’s outlook for fiscal year 2024 estimates the sale of around 15,000 residential lots.
Forestar’s share price has risen by 75% over the past year, indicating strong growth prospects. The company has also been outperforming recent analyst predictions.
Innovative Industrial Properties (NYSE:IIPR), an industrial REIT, leases specialized properties for the regulated cannabis industry. The company currently owns over 100 facilities across 19 states. After a decline in its share price during 2022 due to issues with delinquent tenants, IIPR has rectified the problem and regained investor interest.
Offering a solid and consistent dividend yield of approximately 7.54% annually, this company presents a promising opportunity. IIPR’s Q4 2023 earnings report showed a 12% increase in total revenue, while net income remained practically unchanged from the previous year. Over the past year, its share price has grown by 44%, indicating promising growth prospects within the developing real estate segment.
VICI Properties (NYSE:VICI) is a REIT that owns renowned gaming and experiential properties in the U.S. and Canada. These include Caesars Palace Las Vegas, MGM Grand, and the Venetian Resort Las Vegas. However, the past year saw a 14% drop in share price due to lower-than-expected guidance for fiscal year 2024.
Despite this, investors now have a unique opportunity to purchase shares at a reduced price. VICI Properties’ Q4 full-year earnings results revealed a 21% increase in total revenue and a 24% rise in net income. The company also offers a decent dividend yield of 5.83% annually, with its most recent quarterly dividend amounting to forty-two cents per share.
Currently, the stock seems to be oversold, making it an attractive entry point for a robust and stable REIT.
In conclusion, these three real estate stocks present great opportunities for investors seeking exposure to the real estate industry. They offer solid growth prospects and high dividend yields, making them strong buy options for April 2024.
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