3 REITs with the highest total returns over the past 5 years

When it comes to stock investing, several years of historical performance can often provide a glimpse into a company’s future prospects.

While there is no guarantee that the company will continue to perform in the same way, a profitable company is much more likely to remain a winner over the next five years than one with negative earnings per share (EPS).

For real estate investment trusts (REITs), total returns include appreciation and dividend payments. While some investors prioritize dividend income over appreciation, total return also provides information about safety and potential dividend growth. Therefore, total return should be on every investor’s mind when considering a REIT purchase.

The following three REITs have the highest total returns, including appreciation and dividends over the past five years. They have performed well in the past and continue to outperform other REITs in recent times. Investors should consider these as a starting point in their search for well-performing REITs:

BRT Apartments Corp. (NYSE: BRT) is a REIT that owns, operates and develops multifamily properties in 11 states. Most of its 31 properties are located in the Southeast and Texas. While it’s certainly not the biggest company of its kind, its performance over the past five years has been nothing short of amazing.

From September 2017 to date, the stock has appreciated from $7.84 to $23.94. During this period, $4.26 is also paid in dividends. If you bought 100 shares five years ago for $784, your total return would now be $3,178 or 405% over five years.

The company continues to grow, as evidenced by its recent second quarter earnings report. Revenue and earnings per share were higher, and adjusted funds from operations (AFFO) from the second quarter of 2022 were 37 cents per share, easily covering the quarterly dividend payment of 25 cents. The current dividend yield of 4.1% has room for growth in the future.

Related: Private Market Multifamily Investment Predicts 15% to 17% Annual Return

Life Storage Inc. (NYSE: LSI) is a Buffalo, New York-based REIT that owns and operates self-storage facilities in 36 states and Ontario, Canada. The company, which has more than 1,100 storage facilities, employs more than 2,200 people.

Consumers today have a lot to save, and as a result this company has grown from $49.22 to $129.18 over the past five years. Additionally, investors have received $15.01 in dividends for a total gain of $94.97 for each share they own. This works out to a 193% gain in five years.

The past four quarters have been quite strong for revenue and EPS growth, and the company recently raised its quarterly dividend to $1.08 from $1. The current annual dividend yield is around 3.4%.

Extra Space Storage Inc. (NYSE: EXR ) is another self-storage company based in Salt Lake City, Utah. Extra Space owns and operates over 1,900 units in 40 states, Washington, DC and Puerto Rico.

Extra Storage stock was $77.72 five years ago. Recently, the stock was trading near $202, a gain of $124. Investors have also received dividends of $19.58 during that period, for a total of $144 per share, or a total return of 184%.

Extra Storage continues to perform well for investors. It has beaten street estimates for the past four quarters with revenue and EPS growth. With a 3% dividend it’s hard to find anything not to like about this solid five-year performer.

Stock prices as of September 2, 2022.

Other real estate investment news:

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