Real estate investment is a great way to increase your wealth and security. Equity Real Estate Investment Trusts (REITs) are an excellent option for those looking to diversify their portfolio and take advantage of the potential for long-term growth. January is a great time to start investing in REITs, and a few stand out from the rest. Four of the best equity REITs to buy now in January are American Tower Corporation, Digital Realty Trust, Public Storage, and Simon Property Group. All of these REITs offer investors a chance to benefit from the potential of long-term growth, diversification, and reliable dividends. With low fees and easy access to real estate investments, these REITs are the perfect choice for investors who want to take advantage of the potential of real estate investments.
What are Equity REITs?
Equity REITs, or real estate investment trusts, are trusts that invest in real estate assets to generate income. They are similar to mutual funds in that a financial advisor manages them, and investors don’t have direct access to the properties. REITs are not risk-free investments but low-risk compared to other real estate investments. The risk involved with real estate investing is mainly because it’s an illiquid asset – getting your money out when you need it is challenging. REITs are highly liquid, which means you can sell your shares at any time, which is why they’re classified as equity real estate investments.
Benefits of Investing in Equity REITs
Investing in a REIT has many benefits, including low fees, easy access, and a diverse portfolio. When investing in a REIT, you can access a significant portfolio of properties, including hotels, office buildings, and shopping centers. REITs are low-fee investments, meaning more of your investment returns go toward growth while the rest cover management, maintenance, and other operating expenses. Investing in a REIT also gives you easy access to your money. While real estate investments are illiquid, REITs are easy to sell, making them a good option for investors who want easy access to their money when needed.
Four of the Best Equity REITs to Buy Now in January
Each of these REITs offers a unique experience that investors can benefit from. American Tower Corporation is a great REIT for investors who want to benefit from the growth of the telecom sector. Digital Realty Trust is an excellent option for investors who want exposure to the commercial real estate market. Public Storage is an excellent option for investors who want exposure to the residential real estate market. Finally, Simon Property Group is an excellent choice for investors who want to benefit from retail growth.
a. American Tower Corporation
American Tower Corporation is a REIT that specializes in the wireless telecom sector. It owns and leases land-based communications towers. The company has a long track record of success and has increased its dividend for 31 consecutive years, with a dividend yield of 3.14%. With exposure to the telecom sector, American Tower is expected to grow in a rising interest rate environment, which will cause more customers to lease towers. Overall, American Tower is an excellent REIT to buy now in January because it has a strong history of success, is well-diversified, and offers a growing dividend.
b. Digital Realty Trust
Digital Realty Trust (DLR) is a REIT that primarily invests in the data center real estate sector. The company owns and leases modern data centers, including colocation facilities, interconnection facilities, and peering exchanges. DLR is a good investment for investors who want to benefit from the growth of the data center sector. Data centers are used to store and process data, making them very important in today’s digital world. DLR is a well-diversified REIT that offers long-term growth potential.
c. Public Storage
Public Storage (PSA) is a REIT that invests in the self-storage real estate sector. The company owns and leases self-storage facilities across the U.S. Self-storage facilities are used to store personal belongings such as furniture, sports equipment, and old appliances. Public Storage is a good investment for investors who want exposure to the residential real estate market. The residential real estate market is less volatile than other sectors. Regardless of the economic conditions, people will always need a place to store their stuff. PSA is a highly diversified REIT that offers a growing dividend and low volatility.
d. Simon Property Group
Simon Property Group (SPG) is a REIT that primarily invests in the retail real estate sector. The company owns and leases high-end retail properties, including shopping centers, premium department stores, and outlet centers. Simon Property Group is a good investment for investors who want to benefit from the growth of the retail sector. The retail sector has grown steadily due to consumer spending and online shopping. SPG is a well-diversified REIT that offers an above-average dividend yield.
Conclusion
REITs are low-risk, high-reward investments that are a great way to get exposure to the real estate market. Investing in a REIT has many benefits, including low fees, easy access, and a diverse portfolio. There is no one best REIT to buy now, as each offers a different portfolio of properties that could benefit investors. Real estate is an excellent long-term investment, and these equity REITs are a good way to get exposure to the real estate market while minimizing risk.
