Simon Property Group, Inc (SPG), General Growth Properties Inc (GGP), Agree Realty Corporation (ADC): Buy These REITs on Growth Prospects

A smaller player

Compared to the aforementioned mREITs, Agree Realty Corporation (NYSE:ADC) is a small REIT and operates only in the US. However, it also invests and manages retail properties that are leased to national tenants. Agree Realty Corporation (NYSE:ADC) reported an EPS of $0.52 per share, which edged up $0.01 per share from its estimate. Second quarter revenue of $10.91 million was also $0.35 million ahead of the expectation. Compared to the prior year, FFO was 19% higher, while revenue surged 26%. Also, during the quarter the company delivered three net leased development projects to tenants. So, apparently the REIT enjoyed a solid quarter.

However, the development and acquisition activity needs to continue in order to demonstrate continued growth. Realizing the importance of this, Agree Realty Corporation (NYSE:ADC) acquired four retail properties in the largest acquisition to date by the company to boost growth in the coming quarter. I believe this will significantly enhance Agree Reality’s future rental income. Development activities also continue on three other projects, and in total the construction work in progress nears $12.5 million. The rest of the current year is also not going to pose serious problems for Agree Realty Corporation (NYSE:ADC) as only five leases will be expiring in the remainder of the year, which is only 0.9% of the total percentage of leases.

Conclusion

The aforementioned stocks offer handsome dividend yields and tremendous growth opportunities. Therefore, I am bullish on them. Simon Property Group, Inc (NYSE:SPG) is poised to benefit from its vast global footprint, while future growth for General Growth Properties Inc (NYSE:GGP) and Agree Realty Corporation (NYSE:ADC) depends on the pace of acquisition and development activities. So, I recommend investors buy these REITs.

The article Buy These REITs on Growth Prospects originally appeared on Fool.com and is written by Adnan Khan.

Adnan Khan has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Adnan is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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