Better Real Estate Stock: Realty Income vs. Global Net Lease
Realty Income (NYSE: O) is one of the first landlords that any investor seeking out a net-lease real estate investment trust (REIT) should look at. Although it is an industry bellwether, it isn't the only name in the sector. So how does it stack up against a REIT like Global Net Lease (NYSE: GNL), which has a dividend yield that's more than twice as generous? Here's a look at which of these two net-lease REITs is the better real estate stock.
The first thing to understand about Realty Income and Global Net Lease is that they both rely on net-lease properties. These are single-tenant assets for which the tenants are responsible for most of the operating costs of the structures. There's notable risk at any individual property, but spread over a large portfolio, the approach is fairly low risk for a REIT and its shareholders. On this score, Realty Income is an industry giant with a portfolio of more than 10,000 properties. Global Net Lease's portfolio is materially smaller, with just over 300 properties.
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Source Fool.com
