I would propose the best three Real Estate Investment Trusts (REITs) from the United States. They are:
American Tower Corp.
American Tower is a specialized REIT that operates the world’s largest independent portfolio of wireless communications and broadcast towers. Analyst Samuel Siampaus says improving activity by domestic wireless carriers will help American Towers generate accelerating revenue growth. Siampaus says 5G investment has reached a cyclical low, and carriers are looking to improve the density of their coverage by emphasizing co-locations. In international markets, Siampaus says Africa will be a key growth catalyst. He projects American Tower will expand its overall operating margin to 48% by 2028. Morningstar has a “buy” rating and $230 fair value estimate for AMT stock, which closed at $207.10 on Dec. 6.
Realty Income Corp.
Realty Income is a retail REIT that owns, develops and manages U.S. retail real estate with a focus on single-tenant buildings. It is the largest triple-net REIT in the U.S., meaning tenants pay all property expenses, including real estate taxes, maintenance and building insurance. Realty Income has a 5.6% dividend yield and makes monthly dividend payments, making it an attractive income source. Analyst Kevin Brown says most of Realty’s retail tenants operate service-oriented businesses or other defensive models that protect them from e-commerce competition. Morningstar has a “buy” rating and $75 fair value estimate for O stock, which closed at $56.17 on Dec. 6.
Crown Castle Inc.
Crown Castle is a specialty REIT that owns and operates wireless communications towers. The REIT pays a 6.2% dividend, the highest on this list. Siampaus says churn related to Sprint has weighed on Crown Castle’s growth, and the recent pace of carrier upgrades remains lackluster compared to recent years. Nevertheless, he says leasing activity is solid and Crown Castle is taking the necessary steps to protect its core tower business. Siampaus says management is also conducting a thorough review of its fiber business strategy. Morningstar has a “buy” rating and $135 fair value estimate for CCI stock, which closed at $101.85 on Dec. 6.
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