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In a volatile market, money managers turn from high-flying growth stocks to defensive names that they don’t think will fall as far. And in this market, property REITs are feeling the love. Real estate investment trusts pay no tax on their income, provided that they pay out at least 90% of it in dividends. The shareholders pay the tax. These vehicles for playing the real estate market and for dividend yields are finding new popularity. The industry group is ranked No. 17, up from No. 27 six weeks ago. Nine of the 189 stocks in the group have Composite Ratings of 99 or 98. Self-storage REITs are among those doing the best. Sovran Self Storage ( SSS ), Extra Space Storage ( EXR ) and Public Storage ( PSA ) are all highly ranked. They buy, build and manage facilities where individuals and small businesses can rent storage space. Public Storage, for example, operates more than 2,200 company-owned locations in the U.S. and Europe, totaling more than 142 million rentable square feet of real estate. Through its PS Business Parks interest, it has another 28 million square feet of commercial and industrial space. Public Storage pays a quarterly dividend of $1.70 a share, which translates to a 2.7% annualized yield. Store Capital ( STOR ) has the highest EPS Rating in the group at 99. It blasted to a new high Friday in the aftermath of an upsized secondary offering of 12.2 million sold by a shareholder affiliated with the hedge fund Oaktree Capital. Store Capital owned more than 1,300 single-tenant commercial properties as of Dec. 31, including restaurants, health clubs, movie theaters, early education centers and furniture stores in 46 states. Analysts say that the company is growing fast and the share price is moving higher because it’s acquiring properties at a faster-than-expected pace. The company went public in November 2014. The stock pays a quarterly dividend of 27 cents a share, which works out to a 4.4% annualized dividend. Physicians Realty Trust ( DOC ) has set up in a cup-with-handle base but hasn’t been able to complete a breakout past a 17.23 buy point. Doc, as the company calls itself, owns 151 hospitals and medical buildings in 26 states, spanning 5.8 million square feet, 96% of which are leased. The company says that its strategy is to leverage its relationships with hospitals and physician groups to invest in off-market assets. In Q4, it spent $153 million on acquisitions and said that it plans to spend $750 million to $1 billion more in 2016. The company adds that it’s benefiting from an aging population, ObamaCare and rising health-care expenditures. The stock pays a 22.5-cent dividend, which works out to a 5.4% dividend yield. Scalper1 News
Scalper1 News