But all isn’t lost. Some REIT segments are certainly set to outperform. Each of these top REITs has sector-specific bullish tailwinds set to send per-share pricing soaring, even as the wider market starts an apparent pullback. While they may not 10x your investment in the short-term, each of these top REITs is a solid addition to a well-rounded portfolio.
Iron Mountain (IRM)
Iron Mountain (NYSE:IRM) is one of April’s top REITs on a dual-pronged basis. The unique combination REIT excels as a physical security storage provider and edges into the artificial intelligence and machine learning sectors. A massive data center and cloud solution provider, Iron Mountain serves over 90% of Fortune 1000 companies, safeguarding diverse varieties of physical information, including historical documents, contractual agreements and audio recordings.
However, the rising demand for data storage and offsite information processing is what makes Iron Mountain a top REIT for the next-gen economy.
Equipped with state-of-the-art subterranean and above-ground data centers, Iron Mountain caters to a wide client base, offering efficiency, consistent uptime and reliability, essential for both traditional computing and machine learning applications. Iron Mountain’s appeal extends beyond its pure space and capacity, though, as management also emphasizes and provides clients with the stringent security measures needed to enforce and protect proprietary data. If data is the next oil, Iron Mountain and copycats are the next oil refineries.
Healthpeak Properties (PEAK)
Unlike many top REITs, Healthpeak Properties (NYSE:PEAK) is a REIT that thrives regardless of the interest rate environment. Better yet, the company’s management is on the cutting edge of emerging healthcare trends, positioning it as a top REIT for investors seeking a bit more reflexivity and flexibility in their healthcare REITs of choice.
In response to the challenges faced by senior living facilities during the pandemic, PEAK decisively sold most of its senior housing assets for about $4 billion in 2020 and 2021. The company then strategically reinvested the proceeds into life science and medical office portfolios, sectors with high-quality assets in leading markets and top-tier tenants, and today’s top emerging healthcare segments.
Beyond right-sizing the business, Healthpeak’s outlook means proper positioning to capitalize on potential regulatory changes in healthcare, particularly cost-management initiatives that target aging populations living on fixed incomes. With its high-quality facilities in niche markets, Healthpeak can easily meet the rising demand from premier healthcare systems, expecting those able to afford it to demand a more concierge experience.
Macerich (MAC)
Macerich (NYSE:MAC), a mall management REIT, stands out as a contrarian pick among top REITs, considering how bearish many feel about the sector. Still, while malls generally face challenges, Class A malls (higher-end options owners by Macerich) continue to perform relatively well, attracting consistent foot traffic and maintaining stable revenue and long-term leases. These malls are destination spots where people spend a whole day rather than quick stops for items easily bought online.
Since 2010, Macerich has strategically adapted to the growth of online retail by shedding less profitable stores and lower-quality assets to concentrate on its premium mall properties. Like most brick-and-mortar stocks, Macerich saw its financials suffer during the pandemic. Still, signs of recovery are evident as we approach the summer sales season, with mall visitation and foot traffic surging. As Class A malls transform into hubs for social activities like coffee shops, co-working spaces and more, Macerich is well-positioned as a top REIT ready to capitalize on these emerging industry adaptations.
On the date of publication, Jeremy Flint held no positions in the securities mentioned. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Jeremy Flint, an MBA graduate and skilled finance writer, excels in content strategy for wealth managers and investment funds. Passionate about simplifying complex market concepts, he focuses on fixed-income investing, alternative investments, economic analysis, and the oil, gas, and utilities sectors. Jeremy’s work can also be found at www.jeremyflint.work.