REITs That Still Sport High Yields

REITs That Still Sport High Yields

The average yield for property-owning real estate investment trusts has fallen below 4%. But one category — medical REITs — stands out.

It used to be that when REIT yields dipped below 6%, it meant that the stocks were overvalued and it might be wise to stay away or cut back. Investors, however, have repealed — or chosen to ignore — that guideline. Shares of real estate investment trusts have appreciated so relentlessly since early 2000 that the average property-owning REIT today yields 3.9%. That figure doesn’t vary much whether you look at apartment, office, retail or industrial REITs. Annual total returns continue to reach double figures, mostly from REIT share price appreciation, not income.