According to S&P 500 total returns accounted for 2019, it’s been almost a decade since the stock market lost as much, bringing negative total returns to stock investors.
Real estate market is said to be one of the most vulnerable in this case scenario, while some financial analysts suggest that the real estate market of 2019 is threatening to turn into a bubble.
On the other hand, REITs, or Real Estate Investment Trusts, can represent more than favorable investments in times like this, as REITs do not pay taxes on income and net income.
That means that REITs usually pay up to 90% of their income to shareholders in form of dividends. Here are some of the top real estate stocks that you can consider investing in 2019.
Top Real Estate Investments: Omega Healthcare (OHI)
The name of this REIT may fool you into thinking that Omega Healthcare is actually operating in the healthcare industry in case you haven’t heard of OHI stocks.
However, Omega Healthcare represents a real estate investment trust assisted living homes and nursing facilities.
Due to the fact that people are inevitably aging, with 10,000 Baby Boomers aging on a daily basis and choosing such facilities as their home, Omega Healthcare stocks become favorable investments.
The peak of this trend should be reached in 2022, remaining profitable in the next 7 years from that point, with Omega Healthcare pays 7.4% in dividends.
Top Real Estate Investments: Kite Realty (KRG)
Kite Realty with stocks traded under the thicker KRG may not seem as a cup of tea of every investor looking for top real estate investments as this REIT is operating with retail real estate market, said to be overbuilt in accordance with Yahoo Finance.
KRG stocks dropped to their lowest price in 52 weeks at the beginning of 2019, probably due to skepticism among investors even though the company manages a favorable business model, owning retail real estate in high-growth markets.
Since dropping to new lows, Kite Realty is showcasing clear signs of recovery.
Top Real Estate Investments: Retail Opportunity Investments (ROIC)
Investors who bought ROIC stocks before 2016 probably weren’t thrilled by their choice as stocks lost 28% of value at the beginning of the other half of 2016.
Despite dropping probably due to cautious investors, the declining market and the rising interest rates, ROIC is recovering in 2019. The company increased FFO by 24%, also increasing dividends two times since the drop in 2016.