Many REITs have been hammered by high interest rates, but the predicted falling rates this year will lighten their load, making them attractive to investors seeking substantial dividend and income growth potential. These top REITs also trade at very attractive valuations, as most of the market has turned toward more attractive and riskier options such as Nvidia (NASDAQ:NVDA) or other growth stocks in pursuit of capital appreciation.
So if you are after the best REITs with strong buy analyst ratings, keep reading. Here are several of the most highly recommended REITs to buy in June for U.S. investors.
Alpine Income Property Trust (PINE)
Alpine Income Property Trust (NYSE:PINE) has a high occupancy rate and a significant dividend yield, making it an attractive investment for those seeking stable returns. Pine pays a 7.29% dividend yield.
PINE reported strong performance for 2023, with a high occupancy rate of 99.1% and annualized base rent of $38.8 million. The company’s portfolio consists of 138 properties across 35 states, heavily weighted towards investment-grade tenants, which represent 65% of its base rent. In 2023, PINE sold 24 properties for $108.3 million, generating gains of $9.3 million.
Looking ahead to 2024, PINE aims to continue growing its portfolio by selling non-investment grade assets and acquiring higher-quality investment-grade properties. The company is focused on maintaining its high occupancy and stable revenue streams through strategic property management and acquisitions
Analysts have rated PINE as a strong buy, with a consensus price target suggesting an upside potential of around 10% to 15%. For Q1 2024, PINE reported adjusted funds from operations (AFFO) per share of 42 cents, a 16.7% increase year-over-year.
LXP Industrial Trust (LXP)
LXP Industrial Trust (NYSE:LXP) owns and leases industrial properties, benefiting from strong demand in logistics and warehousing. Its substantial dividend growth and major tenants like Amazon (NASDAQ:AMZN) highlight its investment appeal €‹. LXP pays a 5.91% dividend yield.
In 2023, LXP reported net income attributable to common shareholders of $23.9 million, or 8 cents per diluted share, and generated Adjusted Company funds from operations of $206.2 million, or 70 cents per diluted share. The company completed 6.8 million square feet of new leases and lease extensions, raising industrial base and cash base rents by 40.1% and 27.0%, respectively.
For the first quarter of 2024, LXP reported Adjusted Company FFO of $48.8 million, or $0.16 per diluted share. The company maintained a strong balance sheet with a net debt to Adjusted EBITDA ratio of 6.1x and total consolidated debt of $1.8 billion, with 92.8% of this debt at fixed rates.
Colliers International Group (CIGI)
Although more broadly classified as a real estate services company, Colliers International Group (NASDAQ:CIGI) has significant REIT operations. Analysts appreciate its comprehensive service offerings and strong market positioning €‹. CIGI pays a dividend yield of 0.27%.
In 2023, Colliers’ revenue was $4.34 billion, with notable segments being Americas, EMEA, Asia Pacific, and Investment Management. Despite a challenging market, the company managed to increase its Investment Management revenue by 29% year-over-year, reaching $487.5 million, and ended the year with $98.2 billion in assets under management (AUM) €‹.
For the first quarter of 2024, Colliers reported revenue of $1 billion, a 3.7% increase compared to the same period in 2023. Net income for the quarter was $12.7 million, recovering from a loss of $20.2 million in Q1 2023. Adjusted EBITDA for Q1 2024 was $104.6 million.
Analysts have a positive outlook on Colliers, with a consensus rating of “strong buy” and a price target range between $125 and $150, suggesting a potential upside of around 25.5% from the current stock price.
On the date of publication, Matthew Farley did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Matthew started writing coverage of the financial markets during the crypto boom of 2017 and was also a team member of several fintech startups. He then started writing about Australian and U.S. equities for various publications. His work has appeared in MarketBeat, FXStreet, Cryptoslate, Seeking Alpha, and the New Scientist magazine, among others.