Taubman Centers, Inc. (TCO), Equity Residential (EQR): A Few REITs to Consider for Your Portfolio

Page 1 of 2

By most measures, the real estate market is improving. Some even call it a mini-boom. Can the individual investor take advantage of this?

Besides buying rental property and becoming a landlord or investing in the obvious (home builders and home improvement centers), one way is to invest in the trend is through real estate investment trusts (REIT).

Taubman Centers, Inc. (TCO)

REITs that own or invest in apartment buildings and upscale malls are particularly attractive right now, both for capital gains and dividend growth. Other types of REITs, such as those that operate hotels and industrial properties, can also be considered, although they have been lagging behind their peers somewhat.

Malls

Taubman Centers, Inc. (NYSE:TCO) operates several high-end malls including the exclusive Beverly Center in Los Angeles, home to 160 different high-fashion clothing stores and related businesses.

Although sporting an elevated P/E of around 30, Taubman Centers, Inc. (NYSE:TCO) still remains a good value. The company has reported 25% cumulative sales growth over the last six years in spite of the housing crash and the subsequent financial crisis that it triggered. This figure is much higher than the rest of the segment, and this growth should continue and probably accelerate as the industry and economy keep improving.

The likelihood of continued cash-flow growth also bodes well for future dividend increases. The stock currently yields 2.30%.

Another company to consider is Simon Property Group, Inc (NYSE:SPG), which is the largest REIT in the country and currently operates 393 properties comprising over 264 million square feet.

Simon has also been growing in spite of the crash with EPS, revenue, and dividends all posting double-digit improvements over the last five years. That should continue well into the future based upon the property portfolio, general economic trends, and the good management practices typically exhibited by the company.

The stock yields 2.60% and the dividend is currently $4.60 per share.

Apartments

One of the biggest players in the apartment segment is Equity Residential (NYSE:EQR), which grew out of the savings and loan crisis of the 1980′s and 1990′s, and now has apartment buildings valued at $38 billion in its portfolio. There is size in numbers when it comes to Equity Residential (NYSE:EQR).

A big advantage for the company is that it is firmly entrenched in high-profile markets which are rapidly growing such as New York, Boston, Los Angeles, San Francisco, and Washington, and it will be tough for competitors to overcome that.

Page 1 of 2
Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The Best B-Boy Movies

Most Awesome Hip Hop Documentaries

Foods That Stain Your Teeth

Richest Doctors in the World

The Best Movie Sountracks Ever

The Highest Grossing Musicals on Broadway

The Most Successful Reality TV Stars

Cheapest Cities to Visit in the US

Most Expensive Summer Camps

Most Expensive Animals in the World

Most Expensive Specialty Crops in the World

Movies That Took Ages to Make

The Longest Hollywood Films Ever Made

Most Expensive Concert Stages

The Richest Bands of all Time

10 Most Corrupt Countries 2013 List

10 Countries with the Highest Quality of Life Index

Most Expensive Mattresses in the World

5 Smallest Countries by Land Area

The Ultimate Heartbreak Songs

Richest Teenagers in the World

10 Most Haunted Places in America

10 Best Places to Retire in Florida East Coast

Top 10 Places to See Before You Die

Top 8 Countries in the World Where Justice Prevails

10 Richest States in America

15 Wealthiest Countries in the World

Richest Singers in the World

Most Expensive Tasting Menu in New York City

Most Expensive Baby Items in the World

Most Expensive Hotel Suites in Vegas

Most Expensive Brunch in New York City

Most Expensive Beef Cuts in the World

25 Best Colleges to Get a Job

Top 10 US Supermarkets

The 25 Most Dangerous Cities in the World to Visit

Most Expensive Xbox Games

Top 11 Cities Where Billionaires Live

Top 10 Most Charitable Companies in America

Most Expensive Seafood in the World

The 10 Wildest Conspiracy Theories

The 10 Best Job Markets in the US

Top 10 Accounting Scandals of All Time

The 25 Biggest Cities in the World

Top 10 Best Paying Virtual Jobs

Most Expensive Leather Shoes in the World

Top 6 Things to Buy in March

The 10 Most Stressful Jobs in America – 2014 List

Top 10 Jobs for Introverted People

Top 10 Honeymoon Destinations in the World

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!