動画公開日：2023-07-12 23:28:45
Today, we look at 2 REITs that I would sell asap because they could crash. These REITs are often portrayed as some of the best dividend stocks to buy for 2023, but I disagree. These REITs are not undervalued anymore and despite offering a high dividend yield, they aren’t as attractive as other alternatives. They used to be some of the best REITs to buy but they aren’t anymore. They are Iron Mountain REIT (IRM REIT), a close peer of Digital Realty (REIT DLR), and Tanger Factory Outlet Centers REIT (SKT REIT), a close peer of Simon Property Group (SPG REIT). They are commonly perceived to be blue-chip dividend stocks just like Realty Income (O Stock), but I beg to differ. 🎁You can access my entire REIT Portfolio by taking a 2-week free trial to my REIT newsletter, High Yield Landlord: https://seekingalpha.com/checkout?service_id=mp_1268
Iron Mountain (IRM Stock) is a popular REIT that has historically offered a high dividend yield to investors. It owns mainly paper storage facilities and it is now also growing a data center business. The market has recently repriced it at a historically high FFO Multiple relative to most other REITs, including even the data center blue chip Digital Realty (DLR REIT). I think that it should be the opposite and IRM should trade at a discount given that its main business is facing a secular decline.
Tanger Factory Outlet Centers (SKT Stock) is the biggest landlord of outlet centers / outlet malls. It has performed a lot better than its mall peer, Simon Property Group (SPG) in recent months and as a result, it has become overpriced. I fear that outlet centers will do worse than class A malls over the long run due to their poor locations and sell flexible layouts. For this reason, I would much rather buy SPG REIT at a lower valuation and higher dividend yield.
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Image sources: SKT, IRM, NAREIT, YCHARTS, EPRA, Canva
Important Disclaimer: I am long SPG. This video is impersonal and does not provide individualized advice or recommendations for any specific person. Viewers/readers should not make any investment decision without conducting their own due diligence and consulting their financial advisor about their specific situation. This video is for entertainment purposes only and you are responsible for your own investment decisions. The information is obtained from sources believed to be reliable, but its accuracy cannot be guaranteed. The opinions expressed are those of the publisher and are subject to change without notice. This YouTube channel is managed by Leonberg Research OÜ, a subsidiary of Leonberg Capital OÜ.
#reits #dividend #passiveincome
