For income-focused investors seeking a stable high-yield opportunity, this real estate investment trust (REIT) stands out with its strong 5.68% forward dividend yield and a remarkable 30+ year track record of dividend increases. Operating in the retail real estate sector, the company specializes in long-term net lease agreements across thousands of properties nationwide, ensuring consistent rental income while minimizing operational risks. With an impressive 98.5% occupancy rate and a weighted average lease term of 10 years, this REIT is built for resilience—an essential quality in today’s uncertain market.
The retail real estate sector remains a key pillar of the economy, driven by service-oriented businesses, convenience retail, and experiential destinations that thrive despite e-commerce growth. This REIT continues to expand strategically, having acquired $550 million in properties in 2024 and planning $500–$600 million more in 2025 to strengthen its portfolio. While near-term tenant issues have presented some headwinds, management’s proactive approach—successfully re-leasing or selling affected properties at or above prior rents—demonstrates the company’s ability to mitigate risks and maintain steady cash flows. Investors looking for predictable income in a defensive sector will find this REIT particularly appealing.
Following its February 6, 2025 earnings call, investor sentiment has remained steady, with the stock price increasing 4.35% since the report. While sales estimates have edged up slightly by 0.03%, EBITDA and EPS estimates have seen modest declines of -0.35% and -0.48%, respectively, reflecting temporary tenant turnover challenges. However, with a conservative balance sheet, disciplined acquisitions, and steady FFO growth expectations, this REIT remains one of the most reliable high-yield plays in the sector.
Read on to discover why we reaffirmed this stock in our High Dividend Portfolio and why it remains a compelling investment for long-term income seekers.
