Boston Properties (BXP)
Boston Properties is the largest publicly traded developer, owner and manager of Class A office properties in the U.S.
The company has a portfolio of 197 properties totalling 51.5 million square feet. BXP generates recurring rental revenue as its portfolio has a weighted average remaining lease term of 7.9 years. Its top three markets by net operating income are Boston (34%), New York (28%) and San Francisco (21%).
The business has shown solid improvement lately. In the second quarter of 2021, its funds from operations (FFO) — a critical measure of a REIT’s operating performance — totalled US$268.6 million, or US$1.72 per diluted share. That represented a sizable increase from the US$236.9 million, or US$1.52 per diluted share of FFO the REIT earned in the year-ago period.
Paying quarterly dividends of US$0.98 per share, Boston Properties offers an annual dividend yield of 3.5%.
While Boston Properties trades around US$110 per share, you can get a piece of the REIT using a popular stock trading app that allows you to buy fractions of shares with as much money as you’re willing to spend.
Vornado Realty Trust (VNO)
If you’re bullish on real estate in NYC, look no further than Vornado Realty Trust. This REIT concentrates on premier office and retail properties and consists of 20.6 million square feet of Manhattan office space in 33 properties, 2.7 million square feet of Manhattan retail space in 65 properties, nearly 2,000 units in 10 NYC residential properties, and more.
Vornado earned an adjusted FFO of US$0.69 per share in the second quarter of 2021, up from the US$0.56 per share it generated a year ago. The amount was also in excess of its quarterly dividend payment of US$0.53 per share.
Vornado shares are trading quite a bit lower than their pre-pandemic level — down more than 30% over the past two years — and offer a generous annual yield of 4.7%. If demand for real estate continues to surge in NYC, this REIT could be worth owning. Going with a robo-advisor can be a stress-free way to start investing in REITS.
SL Green Realty Corp (SLG)
The neat thing about REITs is that they can specialize in specific types of properties. Vornado — which we just looked at — owns office space, retail, and residential properties.
But what if you only want exposure to office buildings in NYC? There is a REIT with that particular focus: SL Green Realty. Its portfolio consists of interest in 77 buildings totalling 35.3 million square feet, making it the largest office landlord in Manhattan.
For investors looking for steady passive income, SL Green is particularly attractive. Most dividend stocks follow a quarterly distribution schedule, whereas SL Green Realty pays dividends monthly. Those looking to take control of their investments should certainly explore online trading platforms. The best sites offer resources and tools to help investors make informed decisions as they build and manage their investment portfolios.
Right now, SL Green has a monthly dividend of US$0.3033 per share, which comes out to an annual yield of 4.9%.