The Only 2 Retail REITS to Buy Now

Focus: REITS

Briton Ryle Image Briton Ryle Editor, The Wealth Advisory

Brit Ryle maintains a buy list of real estate investment trusts; according to the editor of The Wealth Advisory, there are only two brick-and-mortar retail stocks you should own right now—one focused on the US and one involved in the Canadian retail market.

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Realty Income Corporation (O) invests in the real estate markets of the U.S., mainly through investments in commercial real estate. It’s had an occupancy level above 96% for the past 10 years. And it’s planning on adding $1.5 billion in new properties to its portfolio.

Management here is smart. They take advantage of high share prices to sell more shares and drum up cash. They take advantage of low share prices to do buybacks and get some of those new shares off the market.

And now they’re taking advantage of retailers that can’t compete with Amazon (AMZN) by buying up their properties at discounted prices.

You’d be hard-pressed to find a better long-term investment than this one. Or a better management team. They came through in the most recent report—FFO and revenues were up from last year and in line with analysts’ increased expectations.

Revenue was a bit higher than estimates.