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
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

Top 10 Best Paid Tennis Stars in the World

10 Cities with High Demand for Nurses

6 of the Worst Greeting Card Messages Ever Crafted

6 Ways to Make Money in ArcheAge and Build Your Empire

10 Foods To Eat To Lower Cholesterol Levels

The 10 Most Hated Television Characters of All Time

The 30 Worst Halloween Costume Ideas Ever Brought to Horrible Life

10 Vocational Skills in Demand Today with Jobs Waiting to be Filled

10 Best Places to Visit in Central and South America

The 10 Greatest Empires in History Which Nearly Conquered the World

The 6 Cheapest Boarding Schools In America 2015

5 Clear Reasons LoL is Better than DotA, Continues to Rule MOBAs

The Only 9 Teams with a Chance to Win the Super Bowl

The 15 Most Common Phobias in America that Induce Fits of Panic

Top 6 Least Expensive Tourist Destinations in 2014

Jim Goetz, Peter Fenton, Jim Breyer: Top 6 Venture Investors for 2014

Top 15 Billionaires in 2014

5 Pitfalls To Avoid When Buying a Franchise

Top 20 Medical Schools in the US – 2014 Rankings

4 Business Strategies that Turned Jamie Oliver into the World’s Richest Chef

6 Qualities That Make You A Good Team Player

10 High Paying Seasonal Jobs in America this Holiday Season

The 10 Busiest Shipping Lanes in the World

5 Most Valuable Brands in China

The 10 States with Highest Substance Abuse Rates Crippling Their Populace

The Top 10 Things to Do Before You Die That Will Echo for Eternity

The 10 Best Selling Items on Etsy

Top 10 Things to Do in Tokyo, the Greatest City in the World

10 Mistakes on Social Media that Can Harm You and Will Probably Get You Canned

The 10 Best Cities to Find Jobs in 2014

The 10 Most Controversial Songs Of All Time to Hit (and get Banned from) the Airwaves

The 20 Biggest IPOs in US History

The 10 Best Places to Visit in Mexico that Are Beautiful and Safe

7 Bad Habits that Age You Beyond Your Years

The 40 Best Fortune Cookie Sayings That Will Leave You Bemused, Befuddled, or Beguiled

10 Foods to Eat Before a Workout to Make Every Drop of Sweat Count

The 5 Best Documentaries On Netflix You Must See

The Most Heartwarming and Inspirational Story Of This Halloween Season, It Will Make You Cry and Jump For Joy

10 Best Party Songs of All Time to Bring the House Down With

5 New World Order Conspiracy Theories that Will Strangle the World

The 10 Highest Rated Movies of 2014

The 10 Largest Container Shipping Companies in the World

The 10 Largest Armies in the World: Who Should We Be Afraid Of?

Best Warren Buffett Quotes on Money You Need to Hear

The 10 Highest Suicide Rates by Profession

The 20 Most Underrated Movies of All Time

The 10 Fastest Growing Companies in America

The 10 Biggest Outlet Malls in USA

The 5 Most Popular Rap Songs of All Time

The 10 Countries that Eat the Most Meat

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!