13 Retail REITs for Riding Out Inflation

Inflation keeps cranking up, rattling the markets and cramping household budgets. But there are some necessities that people are just going to keep on buying, and the properties those businesses occupy can provide some shelter from this economic storm.

Publicly traded real estate investment trusts (REITs) serving retail tenants provide income to shareholders -- they're required to by tax law -- and have the ability themselves to raise the rent to help combat inflation in their own balance sheets.

Here's a baker's dozen to consider.

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Realty Income (NYSE:O) brands itself as "The Monthly Dividend Company," and it's done that for more than 50 years -- with 115 dividend increases along the way. This very large, widely held, San Diego-based REIT has about 11,200 properties in the United States and abroad and is currently yielding about 4.5% at a share price of about $63.

ALSO READ: Why I'll Never Sell Realty Income

Agree Realty (NYSE: ADC) is a Detroit-based operation with a portfolio of just over 1,000 properties in 45 states. This REIT's stock price has held up far better than most, in no small part because of its investment-grade lineup of tenants, and its share price of $67 and current annual dividend of $2.81 per share are producing a yield of about 4%.

As is typical for retail REITs, National Retail Properties (NYSE:NNN) relies on triple net leases -- as reflected in its ticker -- for a business model that empowered this Orlando, Florida-based outfit to raise its dividend for 33 straight years. Powered by a portfolio of 3,114 properties in 48 states, National Retail Properties is providing shareholders a yield of about 5% at a share price of about $39.

ALSO READ: What Does 'NNN' Mean in Commercial Real Estate?

Grocery stores are pretty essential. Cincinnati-based Phillips Edison & Co. (NASDAQ:PECO) has 290 grocery-anchored centers in 31 states, making it one of the country's largest owners of such property. PECO stock currently pays about 3.26% in yield from a share price of about $32.

Simon Property Group (NYSE:SPG) is the largest owner of malls in the retail industry. Based in Indianapolis, Simon says it owns about 230 properties in North America and Asia, with a focus on higher-end shopping destinations, that helped it survive the pandemic and raise its dividend a bit after cutting it dramatically at the height of COVID-19. Simon Property Group stock now sells for about $96 a share and yields a nice 6.72%.

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Federal Realty Investment Trust (NYSE:FRT) is far from the largest REIT, but it's the only Dividend King, with a record of 54 straight annual dividend increases that now has its stock yielding about 4.2% while selling for about $95 a share. Based in Bethesda, Maryland, Federal Realty owns 106 mixed-use properties in affluent urban neighborhoods, primarily in major coastal markets.

ALSO READ: Dividend Kings of 2022

Tanger Factory Outlet Centers (NYSE:SKT) is one of those REITs whose name is right out there. The company now has 36 upscale open-air outlet malls in 20 states, many of which are in highly visible locations along interstates and near tourist destinations. Those 2,600 stores leasing its space help drive a dividend yield of about 5% at a share price of about $15.

Brixmor Property Group (NYSE:BRX) owns and operates nearly 400 community-focused retail centers across the country. This New York City-based retail REIT hosts about 5,000 brick-and-mortar stores. Brixmor stock is producing a dividend yield of about 4.4% for shareholders, at a share price of about $20.

ALSO READ: Investing in Retail REITs

Kimco Realty (NYSE:KIM) is another open-air shopping center specialist. Headquartered in Hyde Park, New York, Kimco has grown in 60 years of business to be the owner of 537 properties helping to produce a dividend yield of about 3.9% at a share price of about $19.

Alpine Income Property Trust (NYSE:PINE) has only been a public company since a November 2019 initial public offering (IPO) at a share price of $19 -- now down to about $17 but still good for a yield of about 6% with two years of dividend increases. The Winter Park, Florida, firm operates 128 high-quality, net-leased properties in 34 states.

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STORE Capital (NYSE:STOR) is based in Scottsdale, Arizona, has a portfolio of nearly 3,000 properties with about 41,000 locations occupied by 573 customers and one well-known major investor: Warren Buffett. Investors in this stock are in store for a yield of about 6.3% at a current share price of about $25.

ALSO READ: Warren Buffett Hates Managing Rentals, But Loves This Other Money-Making Real Estate Investment

W.P. Carey (NYSE:WPC) is a diversified REIT with an even mix of retail, office, and industrial properties. It's a widely respected, widely held company with an enviable record of raising its dividend every year since going public in 1998. But you don't have to be envious. You can simply buy some at the current share price of about $80 and enjoy a dividend yield of about 5.1%.

ALSO READ: Investing in Diversified REITs

Getty Realty (NYSE:GTY) currently owns 1,014 properties in 38 states, almost all single-tenant, net-lease properties primarily occupied by convenience stores and other automotive-related businesses. This wall around its business model has allowed this Jericho, New York, company to produce a record of nine straight years of dividend increases and a current yield of a healthy 6% at a share price of about $25.

Like the rest of the stock market, these REITs are largely way down in share price. But they also have solid portfolios of tenants that keep paying the rent and, thus, fund the dividends that make investing in their stock an income-producing alternative to simply watching share prices crater without any payback. Plus, they might just rally when the turnaround inevitably arrives.

Marc Rapport has positions in Agree Realty and STORE Capital. The Motley Fool has positions in and recommends STORE Capital. The Motley Fool recommends Tanger Factory Outlet Centers. The Motley Fool has a disclosure policy.