Monthly Revenue Streams Through REITs: Explore These Top 3 Options
In the realm of real estate investment trusts (REITs), some stand out for their consistent income and growth potential. Among these is Realty Income Corporation, often referred to as "The Monthly Dividend Company."
Realty Income continues to demonstrate steady performance and growth potential. Its Q2 2025 Adjusted Funds From Operations (AFFO) per share matched consensus estimates at $1.05, and the 2025 guidance was slightly raised from $4.25 to $4.26 per share, just above consensus by a penny. The dividend payout ratio is around 75.8% of AFFO guidance, indicating sustainable dividend coverage. Realty Income’s strategy includes issuing shares and acquiring new properties to drive modest AFFO per share growth, supporting steady dividend payments and modest growth potential.
Realty Income's success is built on a diverse portfolio of over 11,200 properties, spanning various sectors like grocery stores, restaurants, and movie theaters. Its leases are triple net, requiring tenants to pay for insurance, taxes, and maintenance costs. This structure helps to ensure a steady cash flow for the REIT.
However, the performance of other monthly dividend REITs, such as EPR Properties and Gladstone Land, is less clear at the moment. While EPR Properties is known for its investments in entertainment, recreation, and education properties, and typically offers monthly dividends, recent performance data was not detailed in the available sources. Similarly, Gladstone Land, a farmland REIT, provides monthly dividends but no recent earnings or growth outlook was provided in the search results.
Gladstone Land, with its focus on agricultural real estate, has seen its stock price volatility prompt a June report from management. Despite this, 99.8% of Gladstone's debt is fixed for the next 5.3 years, providing a degree of financial stability. Interestingly, when inflation picked up toward the end of 2021, Gladstone's stock skyrocketed, indicating a potential correlation between farmland REITs and inflation.
EPR Properties' stock has fallen about 20% over the past five years due to COVID-19, and its current yield is 6.25%, with a first-quarter payout ratio of 66%. Despite the challenges, EPR Properties remains an experiential REIT, primarily investing in entertainment, recreation, and education properties.
It's worth noting that Gladstone Land's dividend yield is 2.2%, and Realty Income's is 4%. Realty Income has increased its dividend for at least 25 consecutive years, making it a Dividend Aristocrat.
In conclusion, while the recent performance of Gladstone Land and EPR Properties is less clear, Realty Income continues to demonstrate a stable outlook with a diverse portfolio, steady cash flow, and a long history of dividend increases. For a more comprehensive comparison, it would be beneficial to seek up-to-date earnings or analyst reports on EPR Properties and Gladstone Land.
- Given the consistent income and growth potential of Realty Income Corporation, it could be an attractive option for those interested in personal-finance strategies that involve investing in real-estate.
- The financial stability of Gladstone Land, despite its stock price volatility, might make it a intriguing choice for investors who are prone to weather market fluctuations, given its focus on agricultural real estate and fixed-rate debt.
- With the current dividend yield of 4%, Realty Income's long history of dividend increases, making it a Dividend Aristocrat, could be a compelling factor for investors looking for consistent finance returns through real-estate investing.
