Retail REITs Show Promising Income Streams for Investors

A recent report examines the potential of retail REITs for generating passive income. Focusing on firms like Agree Realty, Four Corners Property Trust, and Getty Realty, the findings suggest stability and growth in rental income, promising a positive outlook for investor returns.

Date: 16-10-2024

AI Rating: 7

The report discusses retail REITs, particularly focusing on Agree Realty, Four Corners Property Trust, and Getty Realty, which provide robust passive income opportunities through strategic leasing and investments in retail properties.

Agree Realty (NYSE: ADC)

Agree Realty owns over 2,200 retail locations, primarily utilizing long-term net leases with high-quality tenants. This leasing structure leads to:

Stable rental income as tenants cover all operational costs
Tenant diversity, with top tenants including Walmart (5.8% of annualized base rent), Tractor Supply (4.9%), and Dollar General (4.7%)

Its funds from operations (FFO) have shown a growth of about 6% over the past year, leading to a 2.9% increase in its dividend payout, which currently offers more than a 4% yield.

Four Corners Property Trust (NYSE: FCPT)

This REIT specializes in restaurant properties, acquiring 19 Bloomin' Brands locations recently, which will enhance its rental income. Its structure provides:

Predictable income from net or ground leases
Quarterly dividends yielding nearly 5%

The diversification of tenants leads to a stable income stream, crucial for continuing to grow dividends.

Getty Realty (NYSE: GTY)

Getty Realty focuses on convenience and automotive properties with over 1,000 locations. Its approach promises:

Stable rental income through long-term leases
Quarterly dividends yielding nearly 6%

Recent acquisitions, including 18 properties, indicate their commitment to expanding portfolio and rental income, which in turn supports potential dividend growth.

Conclusion

Given the current data, tenant stability, and growth in funds from operations showcased by these REITs, investors may find these retail REITs appealing for passive income generation.

Stocks: ADC FCPT GTY