Real estate investment trusts (REITs) have been a perennial favorite among income seekers. Thanks to their design and tax structure, REITs kick out the vast bulk of their cash flows back to investors as lucrative dividends, which provides them with yields of more than 4% on average.
And in our income-starved world, those hefty dividends have only become even more in demand.
But some REITs are doing better than others. Case in point, the industrial REITs.
Owners of warehouses, light-duty and logistics spaces have surged over the last year or so and have become one of the top-performing REIT sub-sectors. Even better, perhaps, is that the industrial property owners are rising on what seems like an unstoppable trend.
Despite the sector’s torrid run, the industrial REITs still have the goods for investors who are taking a fresh look at the industry today.
Make sure to check out our guide to REITs.
A Double-Digit Run-Up
As they say, time heals all wounds. That adage certainly holds water when looking at the industrial REITs. Stocks like First Industrial Realty Trust, Inc (FR ) and DCT Industrial Trust Inc (DCT ) were absolutely destroyed during the recession. After all, who needs a warehouse when businesses were suffering left and right. Well, it turns out, Amazon (AMZN ) and a whole host of other online-focused companies needed these spaces. And they came back in spades.