Real estate investment trusts (REITs) are a type of investment vehicle that allows investors to pool their money to purchase, manage, and sell real estate. Additionally, REITs can be publicly traded on stock market exchanges, or they can be private funds. Investors like REITs because they offer the potential for high returns and provide diversification away from stocks and bonds. Additionally, REIT stocks offer the potential for monthly or quarterly cash dividends.
However, there are also some risks associated with investing in REITs. For example, REITs are often highly leveraged, which means they carry a higher level of debt relative to their equity. This can make them more volatile than other types of investments. Additionally, the real estate market is susceptible to fluctuations, which can impact the value of REITs. As with any investment, it is important to do your research before investing in REITs. With that, let’s check out three dividend-paying REIT stocks to watch in the stock market today.
REIT Stocks To Buy [Or Avoid] Now
1. Camden Property Trust (CPT Stock)
Leading us off today we have Camden Property Trust (CPT). Camden Property Trust is a real estate investment trust. For starters, Camden Property Trust is primarily engaged in the ownership, management, development, redevelopment, acquisition, and construction of multifamily apartment communities. For a sense of scale, currently, the company owns and operates over 171 properties containing 58,425 apartment homes throughout the United States.
CPT Recent Stock News
Meanwhile just this month, the company’s Board of Trust Managers declared a 3rd quarter cash dividend of $0.94 per share. As a result, CPT shareholders enjoy an annual dividend yield of 3.18%.
Moreover, in late July Camden Property Trust reported its second quarter 2022 operating results. In the report, the company reported second-quarter 2022 earnings of $1.64 per share, along with revenue of $361.7 million. Furthermore, RCPT reported revenue growth of 30.8% during the same period, a year prior.
Additionally, the company said it estimates Q3 funds from operations of $1.68 to $1.72 per share. The company said it expects third-quarter funds from operations of $1.68 to $1.72 per share. What’s more, Camden Property Trust also said it projects an outlook for the full-year 2022 funds from operations of $6.48 to $6.68 per share.
CPT Stock Chart
During Thursday’s afternoon trading action, CPT stock was trading at $118.06 per share. Given the uncertainty around the stock market as of late, could CPT stock be a good defensive addition to your long-term portfolio now?
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2. LTC Properties (LTC Stock)
Next up, LTC Properties Inc. (LTC) is a publicly traded real estate investment trust that focuses on investments in senior housing and health care properties. For a sense of scale, the company’s investment portfolio currently includes 205 properties throughout 29 states in the U.S. Meanwhile, based on its gross real estate investments, LTC’s investment portfolio is made up of approximately 50% seniors housing and 50% skilled nursing properties. Today, LTC shareholders receive a quarterly cash dividend of $0.57 per common share, which comes out to a 6.25% annual dividend yield.
LTC Recent Stock News
LTC Properties announced this month that it has completed its joint venture investment for its acquisition of three skilled nursing centers. Diving in, LTC will be the majority owner as a result of their $62 million dollar investment into the JV. These northern Florida-based centers have a total of 299 licensed beds and are projected to generate approximately $777,000 in rental income for the second half of 2022 and roughly $4.6 million in 2023.
Separate from that, at the end of July, LTC Properties reported its second quarter 2022 financial and operating results. Specifically, the company posted Q2 2022 earnings of $0.64 per share, with revenue of $43.0 million. For context, this is compared with Wall Street’s consensus earnings estimate for Q2 2022 of $0.63 per share and revenue of $30.4 million. In addition to that, LTC reported a 12.8% increase in revenue during the same period, in 2021.
LTC Stock Chart
So far in 2022, LTC Properties has outperformed the overall broader markets up 4.11% year-to-date. Meanwhile, during Thursday’s power hour session shares are trading at $36.45 a share. Given these recent news announcements, should LTC stock be on your radar of REIT stocks to watch now?
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3. CTO Realty Growth (CTO Stock)
Lastly, we’re going to take a look at CTO Realty Growth (CTO). For the unaware, CTO Realty Growth is a Florida-based real estate investment trust company. The company owns income properties in diversified markets across the United States. Specifically, CTO’s portfolio of assets includes; Income Properties Portfolio, Subsurface Interests, and Commercial Loan Investments. Moreover, the company currently offers its stockholders an annual dividend yield of 8.22%.
CTO Recent Stock News
Moving along, Just this week, the company announced they sold three Florida-based properties for $34.9 million. The sale represented a weighted average exit cap rate of 6.1% with a projected combined gain of $3.9 million for CTO Realty Growth.
Furthermore, John Albright, President and CEO of CTO Realty Growth said, “We’re very pleased with the attractive pricing we received on these asset sales and look forward to accretively reinvesting the proceeds into higher-yielding retail acquisition opportunities that provide more long-term cash flow growth and further strengthen our high-quality, retail-focused portfolio.“
Continuing on, last week the company also announced it will be announcing its third quarter 2022 financial results. Specifically, CTO Realty Growth is set to report its Q3 2022 financial results on Thursday, October 27, 2022, after the market closes.
CTO Stock Chart
Going into Thursday’s closing bell, shares of CTO stock are down 4.14% at $18.54 per share. With the company set to report its third-quarter earnings next month, will you have CTO stock front and center on your REIT stocks watchlist?
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