Forget Realty Income, W.P. Carey Is My Top REIT Stock for 2021
Real estate investment trusts (REITs) were hit hard by the coronavirus shutdowns, but some have done better than others. Net-lease REIT Realty Income (NYSE: O), for example, has turned in strong numbers after a notable hit early in the pandemic. That's not a shock for this industry bellwether, but don't take that as a reason to buy shares -- in fact, peer W.P. Carey (NYSE: WPC) is probably a better long-term bet as a new year gets underway. Here's why.
The pandemic was a real litmus test for real estate investment trusts. While some sectors were doomed to have terrible performance (like hotels), others (net lease) were a mixed bag -- REITs with resilient business models shined, while those with fragile models struggled. For example, EPR Properties, which owns things like amusement parks and movie theaters using a net-lease model, has struggled mightily because of its unique experiential focus. It is still only collecting around half of the rents it is owed.
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Source Fool.com
