(THROWBACK!) High-Dividend REITs: Are They A Safe Bet?
Investment in Real Estate Investment Trusts (or REIT’s) are ideal for investors who want a regular stream of income. REIT’s purchase real estate properties and lease them to clients (or tenants). This income generated is then paid to shareholders via dividends.
REIT’s are required to distribute at least 90% of net income to shareholders which means these firms have higher dividend yields compared to regular equity investments. But how many high dividend paying REIT’s are worth investing in? This article looks at REIT’s with high dividend yields and a market cap of approximately $1 billion.
CBL & Associates Properties
CBL & Associates Properties (or CBL) has a market cap of $915 million. This REIT has a dividend yield of 17.4% and pays annual dividends of $0.80 per share. CBL’s portfolio is primarily in regional shopping malls (Class B and Class C).
CBL is grappling with declining sales as revenue has fallen from $1.04 billion in 2015 to $1.02 billion in 2016 and $927 million in 2017. Revenue is estimated to decline to $852 million in 2018 and $835 million in 2019. There have been concerns over the high debt levels (over $4 billion) of CBL as well.
Further, company CEO Stephen Lebovitz also hinted at a possible dividend cut in the future. CBL reduced its dividend by 25% last year as well. CBL has stated that it is looking to reposition its portfolio and focus on redevelopment initiatives. However, investors will not be confident about investing in a stock that has declined from $20 per share in August 2013 to $4.65 in August 2018. The stock is trading 16% above the average analyst price target of $3.91.
Washington Prime Group
Washington Prime Group (or WPG) engages in the acquisition and development of retail properties and this REIT has a market cap of $1.5 billion. WPG has a dividend yield of 12.8% and pays annual dividends of $1 per share. The stock price has declined from close to $20 in May 2014 to the current price of $7.92 which is 6% higher than the analyst target price of $7.45. This year, WPG has however risen over 18%.
WPG is a mall owner with assets across Florida, the Mid-West and the East Coast. In this digital age when the number of people visiting malls has declined, WPG has also seen its revenue decline. Sales have fallen from $922 million in 2015 to $758 million in 2017 and are estimated to reach $724 million this year.
WPG’s funds from operation (or FFO) which is similar to earnings per share for stocks declined 8.4% in 2017, while occupancy reduced from 94% in 2016 to 93% last year. WPG might also have to cut dividends if sales continue to decline over the next few quarters.
Global Net Lease
Global Net Lease (or GNL) has a market cap of $1.5 billion and this REIT has a portfolio of commercial properties. GNL focuses on sale-leaseback transactions across the United States and Western Europe. GNL has over 300 properties with an average lease term of 8.6 years.
GNL’s client base includes FedEx, GSA, ING, and Finnair among others. While GNL’s revenue rose 21% year-over-year to $259 million in fiscal 2017, FFO per share declined 18%. GNL has a dividend yield of 10% and pays an annual dividend of $2.13 per share compared to its reported FFO of $2.10 per share last year.
GNL aims to acquire properties worth $293 million this year which will expand the company’s portfolio. GNL is estimated to post revenue of $283 million in 2018, $303 million in 2019 and $314 million in 2020. GNL is trading at $21.53 which is 11.5% lower compared to analyst average target estimates of $24.
Kimco Realty (KIM) has a market cap of $7.2 billion and is one the largest publicly traded REIT. This REIT owns close to 500 shopping centers in the United States with 83 million square feet of leasable property. Kimco has a dividend yield of 6.6% and pays an annual dividend of $1.12 per share.
According to this report from Suredividend.com. “Kimco’s property portfolio has enjoyed rising occupancy and rents over the past several years.” In the first quarter of 2018, Kimco’s FFP rose 5.4% driven by a rise in occupancy and rent. While occupancy rose 1 basis point to 96.1%, rental rates for new leases rose over 15%.
Kimco’s tenants include struggling retail companies such as Sears, JC Penny and Kmart all of whom might close a few stores. Kimco will need to look at acquisitions to drive future revenue. This stock has lost close to 6% in 2018 and is trading at $17.06 which is 1.3% lower than analyst projections.
Senior Housing Properties
Senior Housing Properties (SNH) is a healthcare REIT with a market cap of $4.5 billion and a dividend yield of 8.2%. This REIT owns property worth $8.5 billion and over 700 tenants. SNH shares have increased close to 30% since February this year and the stock is trading at $19.04 which is 4% below average analyst price target estimates of $18.25.
While SNH’s FFO per share fell 16% in 2017, performance has started to improve this year. SNH has managed to beat analyst earnings estimates considerably in the last two quarters. SNH has acquired properties worth over $300 million and sold assets of approximately $800 million since the start of 2017. The proceeds were used to pay off debt.
SNH revenue is estimated to rise 4.1% year-over-year to $1.12 billion in 2018 and 2.1% to $1.14 billion in 2019.
Airbnb Experiences: 5 Easy Ways To Make Extra Cash Today
Airbnb Experiences: 5 Easy Ways To Make Extra Cash Today
Airbnb is a great way to earn money by renting out your home or apartment.
However, did you know that you can also make money by offering experiences on Airbnb? Here are five easy ways to make extra cash today by creating and offering Airbnb experiences.
1. Offer a food tour
If you love food, why not share your passion with others? Create a food tour experience in your city, showcasing the best local cuisine. You can offer a walking tour or a bike tour, and include stops at local markets, restaurants, and cafes. This is a great way to meet new people and earn money at the same time.
2. Teach a skill or hobby
Do you have a skill or hobby that you’re passionate about? Share your knowledge with others by offering an experience on Airbnb. You can teach anything from photography to cooking to yoga. People are always looking for new experiences, and they’re willing to pay for them.
3. Host a cultural event
If you come from a different culture, why not share it with others? Host a cultural event, such as a traditional dance, music, or art class. This is a great way to showcase your culture and make some extra cash.
4. Offer a nature experience
If you live in a beautiful area, offer a nature experience on Airbnb. You can offer a hiking tour, a kayaking trip, or a birdwatching tour. People love to get out into nature, and they’re willing to pay for it.
5. Host a wellness retreat
If you’re passionate about wellness, why not host a retreat? You can offer yoga classes, meditation sessions, and healthy meals. This is a great way to help people relax and recharge, while earning some extra cash.
In conclusion, offering experiences on Airbnb is a great way to make some extra cash. With these five easy ideas, you can get started today.
For more ideas and tips on how to make money, check out this Airbnb guide inside our academy.
10 Tips for Making More Money with Your Airbnb Listing
If you’re an Airbnb host looking to increase your revenue, there are several strategies you can implement to make your listing more appealing to potential guests.
Here are 10 tips for making more money with your Airbnb listing:
- Set competitive pricing: Research the prices of similar listings in your area to ensure you’re offering a competitive rate. Consider lowering your prices during slow seasons or offering discounts for longer stays.
- Offer extra amenities: Providing extra amenities, such as a pool, hot tub, or complimentary breakfast, can make your listing more attractive to guests and justify a higher price.
- Invest in high-quality photos: High-quality photos of your space can make a big difference in how many bookings you receive. Consider hiring a professional photographer to capture the best aspects of your listing.
- Keep your listing up to date: Make sure your listing accurately reflects the current state of your property. Update your photos, descriptions, and amenities regularly to keep your listing relevant and appealing.
- Respond promptly to inquiries: Quick responses to guest inquiries can lead to more bookings and positive reviews. Make sure to check your messages frequently and respond as soon as possible.
- Provide excellent customer service: Going above and beyond for your guests can lead to positive reviews and repeat bookings. Make sure to communicate clearly and address any issues promptly.
- Offer local recommendations: Providing guests with recommendations for local restaurants, attractions, and activities can enhance their experience and justify a higher price for your listing.
- Allow instant bookings: Allowing guests to book instantly can make your listing more appealing to those who need to book at the last minute. However, make sure to set clear guidelines for instant bookings to avoid any issues.
- Offer discounts for repeat guests: Offering discounts to guests who have stayed with you in the past can encourage repeat bookings and increase your revenue over time.
- Keep your space clean and well-maintained: A clean and well-maintained space can lead to positive reviews and repeat bookings. Make sure to keep your space clean and address any maintenance issues promptly.
Implementing these 10 tips can help you make more money with your Airbnb listing and improve your overall hosting experience. Happy hosting!
How Big Real Estate Moguls Avoid Taxes (And How You Can, Too) 👀
I was looking around Google for an old article on tax strategies and this five-year old video of myself happened to pop up.
I’m interviewing a tax expert about how real estate investors avoid paying taxes in perpetuity—AND how everyday citizens can do the same thing.
(Real estate—our TEMPLE I and TEMPLE II projects included—has a number of tax benefits savvy investors have capitalized on for years, including Opportunity Zone breaks and 10-year tax abatements.)
There’s the 1031 exchange, of course, which I’ve shared with you guys before.
Just to refresh your memory, the 1031 Exchange allows you to roll over gains from your last project into a new property TAX FREE—as long as said property is worth the same or more.
But there’s ANOTHER TAX LOOPHOLE that can take your portfolio to an entirely new level by splitting your capital gains into MULTIPLE properties.
So I thought I’d share it with you guys. 💎
You can check it out here.
Let me know what you think. 😎
PS: In our next update, I’m going to break down how real estate moguls get paid from their properties…tax free. 👀
PPS: If you want to learn how to implement generational wealth strategies like this one, you can join our NYCE wealth academy (TRIBE U) here.
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