Want Growth, Yield, and Global Exposure? Check out These 2 REITS

Growth and real estate investment trusts (REITs) don't typically go together. In return for the privilege of not paying corporate income taxes, REITs are required to pay out at least 90% of net income to shareholders. That means REITs can't invest much money back into their business; they have to grow using debt or by selling more shares.

The two REITs that we're going to look at today, Public Storage (NYSE: PSA) and Extra Space Storage (NYSE: EXR), have kept the revenue growth flowing by rolling up the self-storage industry. The two companies are the big dogs in self-storage. Both have good revenue growth, global exposure, healthy dividend yields, and inflation protection. Is it time to add them to your portfolio?

While these self-storage REITs are the top two in the industry, Public Storage is indisputably, No. 1. The REIT owns 2,600 facilities in 39 states with a total of 182 million rentable square feet of space.

Continue reading


Source Fool.com