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Real Estate Investing

These 10 REITs Gained Over 10% In 2018

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Real Estate Investment Trusts (REITs) continue to remain popular among investors. Over 90% of REITs have higher dividend yields compared to the average S&P 500 company.

Similar to stocks, REITs need to be held over a long period of time for them to generate substantial returns. Here are 10 REITs that gained 10% in 2018.

1. Arbor Realty Trust [ABR]

Arbor Realty Trust [ABR] is a REIT that engages in the provision of loan origination and servicing across senior housing, healthcare, multifamily, and commercial asset verticals.

ABR has a market cap of $2.4B and has gained over 50% in 2018, primarily driven by robust sales and earnings growth — which no doubt puts a smile on CEO Ivan Kaufman’s face.

Dividend Yield: 9.5%

Total Gain: $800M

CY 2018 Return: 50%

2. Apollo Commercial Real Estate Finance [ARI]

A mortgage REIT, ARI acquires and invests in commercial real estate mortgage loans, subordinate financings, and other real-estate debt instruments. ARI has a market cap of $2.4B and has gained 10.3% in 2018.

Even better, ARI beat analyst estimates in two of the last four quarters.

Dividend Yield: 9.5%

Total Gain: $225M

CY 2018 Return: 10.3%

3. Blackstone Mortgage Trust [BXMT]

The Blackstone Mortgage Trust engages in originating senior loans collateralized by commercial real estate. This REIT aims to protect shareholder value and produce risk-adjusted returns through dividends.

BXMT has a market cap of $4B and has gained close to 11% in 2018. The share price has enjoyed an upward climb as BXMT managed to beat earnings estimates coupled with robust revenue growth.

Dividend Yield: 7.2%

Total Gain: $360M

CY 2018 Return: 10.8%

4. Chesapeake Lodging Trust [CHSP]

The Chesapeake Lodging Trust manages and operates hotels. It has an enviable portfolio including The Royal Palm, Hyatt Regency, Le Meridien, JW Marriott, Hotel Adagio, Ace Hotel, Hilton Checkers, Homewood Suites, and Hotel Indigo.

In July 2018, CHSP closed the sale on the Hyatt Centric Santa Barbara which is a 200-room hotel for $90M.

CHSP has a market cap of close to $2B and this REIT has gained 24.2% in 2018.

Dividend Yield: 4.8%

Total Gain: $380M

CY 2018 Return: 24.2%

5. CyrusOne [CONE]

CyrusOne owns, develops and operates multi-tenant data center properties. This REIT provides data center facilities to ensure continuous operations of IT infrastructure companies.

CONE has a market cap of $6.4B and has risen 15% in 2018. Last month, CONE closed the $440M purchase of Europe-based Zenium Data Centers. This expansion into Europe is expected to positively impact revenue for CONE.

Analysts expect CONE’s revenue to grow 22.4% in 2018 and 19% in 2019.

Dividend Yield: 2.8%

Total Gain: $830M

CY 2018 Return: 15%

6. Digital Realty Trust [DLR]

Digital Realty Trust owns, acquires and manages technology-related real estate. It provides data centers, colocation, and interconnection solutions. DLR is one of the largest REIT companies with a market cap of $26.4B.

DLR has gained close to 11% in 2018 and is expected to benefit from the global boom in cloud capital spending.

Dividend Yield: 3.3%

Total Gain: $2.4B

CY 2018 Return: 10.9%

7. Education Realty Trust [EDR]

Education Realty Trust focuses on the acquisition and development of housing communities near university campuses.

It has a market cap of $3.3B and has risen 21.5% in 2018. EDR has an impressive earnings history that has driven shares of the REIT upwards. In fact, EDR has beaten earnings estimates by 270% in Q2 2018, 121% in Q1 2018, 28% in Q4 2017 and 80% in Q3 2017.

Dividend Yield: 3.8%

Total Gain: $591M

CY 2018 Return: 21.5%

8. EastGroup Properties [EGP]

EastGroup Properties [EGP] acquires and operates industrial properties in the United States. Its portfolio consists of distribution facilities in Florida, California, Texas, Arizona, and North Carolina.

EGP has a market cap of $3.45B and has risen 11.1% in 2018. Large dividend payouts from REITs continue to entice investors and EGP raised dividends by 12.5% in its latest quarter. EGP has in fact increased dividends for seven consecutive years now.

Dividend Yield: 2.6%

Total Gain: $341M

CY 2018 Return: 11.1%

9. EPR Properties [EPR]

EPR Properties is involved in the development and leasing of theatres and entertainment centers. With a market cap of $5.2B, EPS has risen almost 12% in 2018.

EPR’s revenue is estimated to rise 13.3% in 2018 and 5.4% in 2019. The stock is currently trading at $69.84 and the high analyst target estimate for EPR is $71.

Dividend Yield: 6.1%

Total Gain: $552M

CY 2018 Return: 12%

10. Granite Point Mortgage Trust [GPMT]

Granite Point Mortgage Trust focuses on originating, investing and managing senior commercial mortgage loans and other debt, such as commercial real estate investments. GPMT has a market cap of $828M and has risen 12.3% this year.

Similar to other REITs in this list, GPMT has benefitted from encouraging revenue growth in 2018. Analysts expect revenue to rise 24% in 2018 and 18.5% in 2019.

Dividend Yield: 8.3%

Total Gain: $155M

CY 2018 Return: 12.3%

Real Estate Investing

Here’s Why You Need To Use A Mortgage Broker When Buying Your Home

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Would you like to build or buy a home today?

There are many factors that you should consider. You will note that earlier on, most people used to visit banks in order to get loans that could enable them build or buy a house of their dreams. This used to work well for some people.

However, others used to have a difficult time securing loans. This is because some banks used to charge higher interest rates. This normally discouraged these people. This is the reason why you should consider using a mortgage broker.

What are the advantages of working with this broker? These include:

1. Enable you to Save Money

Would you like to save more money when you are buying a home? You should consider using the services of a mortgage broker. You will realize that this broker can help you compare several home loans from dozens of lenders.

You will not be dealing with one lender only. The good news is that you will be dealing with different lenders. This can help you get a good deal in terms of interest rates and fees.

This can play a major role in helping you save more money.

2. Saves Time

The process of getting a home loan can be very tasking. You have to visit different lenders so that you can compare their interest rates. Sometimes, you might not have all this time. You might end up choosing a lender who charges you more interest.

If you want to save more time, you should consider using the services of this professional. The good news is that this professional will do most of the work for you.

This will include the following activities; liaising with conveyances, real-estate agents, lenders and even settlement agencies.

3. More Peace of Mind

Securing a good mortgage loan can be very hectic. Most people normally struggle to secure these loans successfully. This can make you not to enjoy some peace of mind.

However, the good news is that this professional can help you secure a good loan successfully. You can trust that he will go for the best option out there. This can help you have some peace of mind as you will be doing other activities either at home or at the workplace.

You will realize that this professional will stay in contact with you to check if you have the right mortgage from the right lender.

4. Little Chances of Refusal

There are people who normally apply for a mortgage loan and are denied this loan. This could be due to their credit score, among other factors. This can be detrimental. You are likely to get frustrated.

Some lenders are very strict. However, there are some who are lenient. This is because different lenders normally have different credit policies and restrictions regarding who they will lend to. This is the reason why you should choose this broker to help you out.

This broker will considerably reduce the chances of refusal because he has vast knowledge on lender policies. He will help you settle for a good deal. Thus, an increase the chances of you building or buying your dream home.

5. Professional Advice

You can trust that this professional will help you understand all the mortgage-related information. He or she will help you understand the numerous types of mortgage available out there.

You will note that each of the mortgage types normally has its own parameter and technicalities. This can actually be very confusing to the common man. This mortgage broker will help you sort out all this information and also explain the different types of deals available in the market.

The good news is that this expert will help you narrow down the information to finally choose the mortgage that suits your needs. Sometimes, it is difficult to understand all the legalities that are related to mortgages.

However, this professional will give you professional advice in this field. This can help you avoid certain pitfalls since you will be fully aware of everything that you must know.

6. More Convenient

We all like convenience. The good news is that the professional will work hand-in-hand with home loans and lenders every day of the week. You can trust that this professional will assure you that the entire process will go smoothly and successfully.

7. He Represents you

The good news is that the mortgage broker normally represents you. You can trust that he will work on your behalf and not on behalf of a particular bank.

He will work with different lenders to ensure that you get the best deal out there.

8. You do not have to Pay this Broker Directly

You will realize that you do not have to pay this broker directly for their services. In most cases, they are normally paid by the financial institutions that arranged your mortgage. This makes it ideal to work with this broker.

The mortgage broker normally works for you. He is independent and can help you navigate the often confusing world of mortgages. He or she will work on getting the best deal for you.

This is because dealing directly with the companies can be hard. Some of them might not have the best interest in mind. This is the reason why you should consider using the services of a mortgage broker.

In addition, he or she will help you save more time in the long run. You can carry on with your usual activities either at home or at work as the broker works for you.

You will even manage to save more money. Consider hiring the services of this broker, and you will not regret. The services of this broker are truly incredible.

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Real Estate Investing

5 Strategies To Close Your First Real Estate Deal

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