Better Buy: Innovative Industrial Properties or W.P. Carey?
There are some important similarities between Innovative Industrial Properties (NYSE: IIPR) and W.P. Carey (NYSE: WPC). But there are also some key differences. If you are salivating at the 9.2% yield being offered by Innovative Industrial, you might want to step back and consider erring on the side of caution with W.P. Carey's 6.4% yield. Here's how these two real estate investment trusts (REITs) are similar -- and, more importantly, different.
A net lease is a rental contract that is normally between a landlord and a single tenant. The most important feature is that it requires the tenant to pay for most property-level operating costs, including things like maintenance and taxes. Effectively, it shifts the responsibility for the property to the tenant, which means the tenant can control the most important aspects of the asset it is occupying.
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Source Fool.com
