Some of Realty Income's biggest clients include:
Retail makes up about 82% of its property mix; another 13% is industrial. Unlike most REITs that pay dividends quarterly, Realty Income pays its dividend monthly, which can be useful for extra free cash if you're using your dividends for income rather than reinvesting them. These dividends have increased steadily since the 1990s, the most recent monthly payout being about $0.26 per share for July 2024.
3. Prologis
Warehouses may not seem like the most exciting place to put your hard-earned money. But the COVID-19 pandemic changed how we shop, turning more people on to online stores and e-commerce fulfillment from brands they already know and trust.
This trend means more companies are looking for places to stash backup inventory and equipment. As a result, warehouse REITs have been thrust into unforeseen growth over the past few years.
Prologis is one of the biggest players in the field, with approximately 1.2 billion square feet of rental space in 19 countries. It primarily services business-to-business, retail, and e-commerce online fulfillment companies.
With a 97.6% occupancy rate and growth in net operating income of almost 40% from 2022 to 2023, it's solidly positioned. Prologis counts Amazon, Home Depot (NYSE:HD), FedEx, UPS (NYSE:UPS), and Walmart among its top 10 tenants.
4. Alexandria Real Estate Equities
As a REIT focused on the life science, ag tech, and technology industries, Alexandria Real Estate Equities controls spaces used for work important to humanity's future. But it's not just small spaces here and there; the company believes in creating clusters of research facilities to help foster innovation in cities such as Boston, San Francisco, New York, San Diego, and Seattle.