This REIT You've Probably Never Heard of Has Paid a Dividend Above 8% For The Last 5 Years

Real estate investment trusts (REITs) are a favorite among investors that enjoy the passive dividend income. These companies typically have predictable cash flow and consistent distributions, making them a great way for long-term investors to compound their returns.

The REITs that get the most attention are the publicly traded companies, like Realty Income, Prologis and Simon Property Group. However, there are a number of great opportunities available with public, non-traded REITs.

Non-traded REITs are still regulated by the Securities and Exchange Commission (SEC), but their shares don’t trade on the major stock exchanges. While the value of a publicly traded REIT is set by the market, the share price of a non-traded REIT is directly tied to the company’s net asset value (NAV). This often means non-traded REITs are much less volatile and offer a more predictable total return.

1st Streit Office

1st Streit Office (Buy Shares) is a non-traded REIT offered through the Streitwise investment platform with a current dividend yield of 8.4%. Since its inception, the company has paid out quarterly dividends with an average annualized yield of 9.3%.

The REIT owns a portfolio of class A properties, including the Panera Bread headquarters in Sunset Hill, Missouri.

While most publicly traded REITs saw a price decline of over 50% at the beginning of the COVID-19 pandemic, 1st Streit Office only saw a 1.4% decrease in value in the first quarter of 2020, and actually finished 2020 at a higher price than the start of the pandemic while maintaining an 8.4% dividend yield all year.

How to Buy Shares of 1st Streit Office: Since investors can’t buy shares of non-traded REITs on a major stock exchange, shares have to be purchased directly through Streitwise.

The REIT is currently priced at $10.15 per share with a minimum investment of 500 shares.

How to Sell Shares: Non-traded REITs are meant to be a long-term investment and are best suited for investors willing to maintain their investment for at least five years. After a minimum holding period of one year, investors have the option to liquidate their shares through the platform’s redemption program. After five years, investors can redeem their shares for 100% of the current value.

Visit Streitwise for more information

Photo by Iracema Navarro on Unsplash

Posted In: REITReal EstateAlternative investmentsnon-traded REITsreal estate investingstreitwise