2 Incredibly Cheap Retail REITs
The efforts to contain the spread of COVID-19 have led to massive dislocations in the retail sector and put a material crimp on real estate investment trusts (REITs) that focus on the space. However, not all retail REITs are the same, with industry leaders Realty Income (NYSE: O) and Federal Realty (NYSE: FRT) likely to get through the economic headwinds today in relative stride -- just like they've done in previous rough patches.
If you are looking for bargains in the retail REIT sector, this pair of landlords should be on your radar today.
Realty Income is a bellwether name in the net lease niche. This means that it owns properties for which the tenants are responsible for most operating expenses. It's generally a low-risk approach to real estate, with Realty Income revenue coming from the difference between its financing costs and the rental rates it charges. The REIT is one of the biggest players in the space, with a portfolio of more than 6,500 properties across the U.S. and the U.K.
Source Fool.com
