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Top Real Estate News for Monday, Nov. 15, 2021: Cell Tower Giant to Buy Data Center REIT

By Marc Rapport – Nov 15, 2021 at 2:22PM

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American Tower to buy a data center operator; Trump reaches deal on marquee D.C. hotel, and more.

Real estate investors today are mulling news about Trump International Hotel in Washington, D.C., and a deal pending between two REITs. We've also got a look at a tempting dividend yield, whether it makes sense to list your house right now, and three other REITs that are worth a look.

American Tower to buy CoreSite Realty

American Tower (AMT -2.04%) announced today that it has agreed to buy fellow real estate investment trust (REIT) and data center operator CoreSite Realty (COR) for $7.51 billion in cash. The deal is for $170 per share in cash and includes taking on CoreSite's debt. 

CoreSite stock was up around 1:40 p.m. and American Tower stock was down. 

American Tower already is the largest REIT and mobile tower provider out there, and buying a data center operator makes a lot of sense as AMT builds out its global digital communications network.

Two people greeted by a third at a hotel's entrance.

Image source: Getty Images.

Trump reaches deal to sell Trump International Hotel in Washington, D.C.

Former President Donald Trump's family business has reached a deal to sell Trump International Hotel in downtown Washington, D.C., for $375 million to CGI Merchant Group in Miami and rebrand it as a Waldorf Astoria, according to published reports.

The hotel lost money, but the sale price will still mean a profit for the Trumps, according to the published reports. Privately held CGI Merchant Group is showing its confidence in a business where publicly traded hospitality REITs are now seeing some recovery from the pandemic.

Is listing your home during this holiday season a good idea?

Today's situation is unlike years past, when the advice would normally have been to wait until spring to sell, if possible. But if you're on the fence about listing during this holiday season or waiting for spring, Motley Fool contributor Laura Agadoni, a seasoned real estate investor and agent, reports that there's really no reason not to list now.

Laura points out that the lack of competition right now and the prospect of rising interest rates looming could be good reasons to get off the fence.

How safe is Omega Healthcare's dividend?

When the coronavirus pandemic hit in 2020, senior housing was on the front lines. Operating performance has improved since the worst of the industry downturn, but Omega Healthcare Investors (OHI -2.69%) is starting to show increasing signs of stress. It just made one notable dividend decision that shouldn't be ignored.

Motley Fool contributor Reuben Gregg Brewer points out that faltering rent revenue and a high payout ratio pose potential perils for those chasing a currently high yield (9.32%, based on OHI's stock price in midday trading today).

3 REITs to build your portfolio around

REITs can be outstanding foundations for a diverse portfolio because of their range of sectors and requirements to return dividends to investors. If you're looking to start or expand your real estate portfolio, here is a look at three REITs you could build your portfolio around.

Motley Fool contributor Liz Brumer-Smith talks about Prologis (PLD -1.48%), Invitation Homes (INVH -1.12%), and Switch (SWCH). The first two are major players in the industrial and short-term rental sectors, while the third is a newcomer among data center REITs.

 

Marc Rapport owns shares of CoreSite Realty and Omega Healthcare Investors. The Motley Fool owns shares of and recommends American Tower, Invitation Homes Inc., Prologis, and Switch. The Motley Fool has a disclosure policy.

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