Is Agree Realty a Millionaire Maker?
Net lease real estate investment trust (REIT) Agree Realty (NYSE: ADC) has a 4.1% dividend yield. That yield is a little higher than the 3.7% average for the REIT sector, but below the 5.6% you could get from buying industry leading net lease REIT Realty Income. Is Agree Realty worth the premium price for investors looking to build seven-figure portfolios? Maybe.
A net lease requires tenants to pay most property-level operating costs. Net lease assets are usually leased to a single tenant, so any single property is high risk because it is either 100% leased or 0% leased. However, there are some easy ways to reduce the risk. The first is to have a lot of properties. Agree Realty has over 2,200 assets in its portfolio, which provides a fair amount of diversification. The second way to mitigate risk is to choose good properties.
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Source Fool.com
