Custom Search



The Top 5 best triple-net lease REITs

Posted by

Triple-net lease REITs work like this: a company buys an office building then leases it back to the seller for a long term (typically 10 to 20 years). This is beneficial to both the buyer (the REIT) and the seller (the tenant).

How? The seller no longer has a mortgage to deal with, and they get a tax deduction for paying rent. The REIT gets a steady stream of income in the form of rent checks.

The REIT also benefits because the seller has to keep paying property taxes, insurance and maintenance costs (per the lease agreement). That’s where the name “triple-net” comes from. It’s generally regarded as a safer type of REIT than those that deal in mortgage derivatives and riskier mortgage securities.

A handful of REITs specializes in this form of triple-net leasing. Here are five with outstanding yields:

1) Caplease (LSE), 6.23% yield. A small-cap REIT focused on retail and office space.

2) Lexington Realty Trust (LXP), 5.61% yield. Another small-cap REIT focused on retail and office space.

3) LTC Properties (LTC), 5.32% yield. LTC focuses on the growing and lucrative health care field with leases on nursing and health facilities.

4) National Retail Properties (NNN), 5.65% yield. Holds 1,500 properties throughout the United States.

5) Realty Income (O), 4.70% yield. A stable REIT with tenants like FedEx and BJ’s Wholesale Club.

Photo by Svilen001.

Related

Comments

comments

Powered by Facebook Comments

Tags: , , , , ,

Leave a Reply

Name and Email Address are required fields. Your email will not be published or shared with third parties.









Killer Articles

Top 10 best gold and silver ETF funds

Here’s a look at the Top 10 best gold and silver ETFs that trade on major U.S. exchanges. We’ve ranked them by volume, as some of the niche ETFs in the precious metals market are so... Read on.

3 reasons NOT to invest in Groupon’s IPO

An IPO date hasn’t been set, but here are three big warning signs you might want to consider before investing in Groupon’s stock... Read on.

From start-up to titan: The unofficial tech IPO calendar for 2012

From Facebook to Twitter to Groupon, the planned tech IPOs in 2012 could be among the most exciting string of new public companies... Read on.

How to invest in water stocks

Often overlooked as a commodity, water supplies could become increasingly critical as emerging economies around the world improve their diets and demand more agricultural resources for the production of meat... Read on.

World’s largest economies in 2050 will look very different

India’s rapid ascent to economic supremacy will be driven by a surging working age population, which will grow more than 40 percent between now and 2050... Read on.

How to invest in cotton stocks

If you’d like exposure to cotton markets without delving into futures and options contracts, a handful of cotton ETNs and cotton-related stocks are available... Read on.

How to buy Chinese Yuan

The Chinese yuan or renminbi has risen about 5 percent a year over the past five years, and some investors argue that China’s currency is still undervalued by 40 percent. If the dollar suffers ... Read on.

Five cheap franchises to start with less than $10,000

Franchises are so ubiquitous we often don’t realize we’re shopping at one. From McDonald’s to Hampton Inns and doggie day cares to campgrounds, they’re literally everywhere. All told, franchises account for 10.5 percent of all businesses in the U.S, and they... Read on.

Why invest in silver?

Ask 10 people why you should invest in gold and silver, and you’ll probably get 10 different answers – many of which will be accompanied by a shrug. Most investors don’t understand the motivation for holding gold or silver bullion. Nonetheless, it’s been difficult to ignore... Read on.

How to Invest in Copper

Copper isn’t as glitzy or glamorous as gold or silver, but in many ways it feels safer. Since copper is regularly used in electronics, it’s consumption per person (particularly in the developed world) has been on the rise for decades. So how does one invest in copper? Read on.