Equity real estate investment trusts (REITs) tend to be much more common than mortgage REITs. They earn their money through rental income from purchasing commercial real estate properties.
Investing in an equity REIT gives an investor the ability to add real estate to their portfolio without purchasing the properties themselves.
The main goal of equity REITs is to generate income through receiving rent from tenants and businesses leasing the space. Because these companies generate revenue by collecting rents, it makes forecasting future income easier, since rents tend to increase over time. Delve deeper into these two equity REITs offering steady yields, as macroecnomic headwinds remain in question.
- Gaming and Leisure Properties Inc. GLPI offers a dividend yield of 6.06% or $2.82 per share annually, through quarterly payments, with a track record of increasing its dividends once in the past year. This equity REIT is primarily involved in the leasing of gaming and related facilities to Penn Entertainment PENN, throughout the U.S. The portfolio consists of 57 premier gaming and related facilities and amenities that are geographically diversified and well-positioned across the country. GLPI CEO Peter Carlino recently praised the company's “record second quarter results" and "ongoing momentum" in the expansion and diversification of its portfolio.
- VICI Properties Inc. VICI offers a dividend yield of 5.02% or $1.56 per share annually, using quarterly payments, with a decent track record of increasing its dividends for three consecutive years. This equity REIT acts as an owner, acquirer, and developer of real estate assets across gaming, hospitality, entertainment, and leisure. It also works closely with MGM Resorts International MGM. Its golf course segment includes the Cascata, the Rio Secco, the Grand Bear and the Chariot Run golf courses, along with 34 acres of undeveloped and underdeveloped land adjacent to the Las Vegas Strip. VICI Properties’ diverse portfolio consists of 43 gaming facilities comprising over 122 million square feet and features approximately 58,700 hotel rooms and more than 450 restaurants, bars, nightclubs and sportsbooks.
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