12 REITs With Great Prospects for Long-Term Growth

Publicly traded equity real estate investment trusts (REITs) have provided shareholders with excellent returns since their creation more than 60 years ago. They were created as a way for small investors to get involved in owning properties that otherwise would be out of their reach.

REITs own pools of properties usually focused on one industry, and they are required by tax law to pass at least 90% of their taxable income to shareholders.

Here are 12 to consider that offer potential for significant long-term growth. Remember: Yield equals dividends divided by share price. So, rising prices will make the yield look smaller while the dividend itself remains constant.

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Medical Properties Trust (NYSE:MPW) is one of the largest owners of hospitals in the world. Based in Birmingham, Alabama, MPT has about 440 facilities with a total of 46,000 licensed beds, mostly in the United States but also in eight other countries on four continents.

The growing portfolio is focused on general acute-care hospitals, with some behavioral-health facilities and urgent-care clinics mixed in.

MPT stock is currently trading for about $22.34 a share and yielding around 5.03% after raising its dividend for the past nine consecutive years.

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Boston Properties (NYSE:BXP) tags itself as the largest publicly traded developer, owner, and manager of Class A office properties in the country.

The Boston-based REIT currently has a portfolio of 202 properties concentrated in Boston, Los Angeles, New York, San Francisco, Seattle, and Washington, D.C., and it's been investing heavily in the extremely hot life-sciences property segment.

Boston Properties has grown its dividend by 12% in the past three years and is currently yielding about 3.46% on a share price of about $111.44.

Prologis (NYSE:PLD) is the largest of the industrial REITs -- perhaps the hottest commercial real estate segment there is right now, as the demand for e-commerce and other logistics space outstrips supply at a record level.

The San Francisco-based company is operating in 19 countries through a collection of about 4,700 buildings containing nearly a billion square feet and occupied by about 5,500 customers.

Prologis has bumped up its dividend for eight straight years and is currently yielding about 1.63% on a share price of around $156.82.

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UMH Properties (NYSE:UMH) owns and operates 127 manufactured housing communities in 10 states, where it both rents and sells the homes. The Freehold, New Jersey-based REIT is positioned well to take advantage of the need for relatively affordable housing. The company has just expanded into the Florida market, adding more prospects to its growth.

UMH has raised its dividend by 5.56% over the past two years and is currently yielding around 3.29% on a share price of about $23.12.

Innovative Industrial Properties (NYSE: IIPR) provides production facilities for licensed medical marijuana growers in more than half the 35 states where that's legal.

The San Diego-based company focuses on buying and leasing back properties to growers who otherwise would find financing hard to come by in a business that's still considered illegal on the federal level. And the REIT's been growing fast, adding 29 properties in the fourth quarter of 2021 alone to give it a portfolio of 103.

The company has raised its dividend for each of the past five years since it's gone public and currently yields about 3.21% on a share price of about $192.24.

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Presented by Motley Fool Stock Advisor

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Terreno Realty (NYSE:TRNO) owns a fast-growing portfolio of small logistics properties in and around Los Angeles, Northern New Jersey/New York City, the San Francisco Bay area, Seattle, Miami, and Washington, D.C. The focus on infill locations near major ports and highways bodes well for this San Francisco-based REIT.

Terreno has raised its dividend for 11 straight years -- including by 37% in the past three years, and is currently yielding about 1.86% on a share price of about $73.28.

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Digital Realty (NYSE:DLR) owns and operates 282 data centers -- about as essential a growth segment as there is as the need for global digital connectivity keeps expanding.

The Austin, Texas-based REIT's properties are in 26 countries on five continents, and it just continues to expand -- most recently with a major investment in a South African data center operator.

Digital Realty has raised its dividend for 18 straight years, including by nearly 15% in the past three years, and is currently yielding about 3.12% at a share price of about $148.66.

Federal Realty Trust (NYSE:FRT) owns, operates, and redevelops high-quality retail and mixed-use properties, focusing on Boston, San Francisco, Los Angeles, and Washington, D.C.

The North Bethesda, Maryland-based REIT has 106 properties with approximately 3,100 tenants and an enviable record of shareholder return.

Federal Realty has raised its dividend for 54 straight years, earning it the title of Dividend King. Its stock is currently yielding about 3.41% on a share price of about $125.34.

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American Tower (NYSE:AMT) stands tall among REITs, with a market cap of about $113 billion and a portfolio of more than 175,000 telecommunications sites worldwide, including 43,000 in the U.S. and Canada alone.

The Boston-based company is expanding its reach in other ways, too, with the recent acquisition of CoreSite, a major data center operator.

AMT has raised its dividend for 12 straight years, including by 65.40% over the past three years, and is currently yielding about 2.25% on a share price of about $248.22.

LTC Properties (NYSE:LTC) is invested in more than 190 skilled nursing and senior living facilities in 27 states. This Westlake Village, California-based REIT was particularly hard hit by the pandemic.

Occupancy and general fear over loved ones staying in facilities like this hammered operators, including some that couldn't pay the rent at that time. But that appears to be turning around, and this is a growth industry in general, given the aging of the U.S. population.

LTC stock is currently yielding around 6.43% on a share price of about $35.66. Plus, LTC Properties pays dividends monthly rather than quarterly.

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Presented by Motley Fool Stock Advisor

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American Campus Communities (NYSE:ACC) is the nation's largest developer, owner, and manager of student housing communities.

The Austin, Texas-based REIT boasts a portfolio of 202 properties with about 140,700 beds -- a diverse collection of properties that includes the massive Flamingo Crossings Village it operates for the college program at Disney World in Florida.

ACC has increased its dividend payout by 3.30% in the past three years and is currently yielding about 3.65% on a share price of around $51.73.

Alexandria Real Estate Equities (NYSE:ARE) presents a great way to invest in life sciences, an industry clearly on an upward trajectory.

This REIT provides lab and office space to more than 700 tenants -- including the major COVID-19 vaccine makers -- primarily at campuses in and around Washington, D.C., North Carolina's Research Triangle, Boston, San Francisco, and its hometown of San Diego.

Alexandria has raised its dividend for 12 straight years, including by 20.11% in the past three, and is currently yielding about 2.43% on a share price of about $191.44.

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Along with steady income, REITs provide liquidity and transparency and the ability to pick and choose among real estate investment sectors that can help position your portfolio for growth for years to come. Any of the choices above can be an effective way to start your exploration of this investing channel.

Marc Rapport owns Alexandria Real Estate Equities, Digital Realty Trust, Innovative Industrial Properties, Medical Properties Trust, and Terreno Realty. The Motley Fool owns and recommends American Campus Communities, American Tower, Digital Realty Trust, Innovative Industrial Properties, Prologis, and Terreno Realty. The Motley Fool recommends Alexandria Real Estate Equities and UMH Properties. The Motley Fool has a disclosure policy.