If I Had to Buy One REIT Stock, This Would Be It
The idea of buying just one real estate investment trust (REIT) is hard to get my head around, because there are so many different property niches. But, if you are looking for a "one and done" REIT to provide you with a solid and growing stream of passive income, you should put W.P. Carey (NYSE: WPC) on your short list. Here's why I own this landlord and why you might want to, as well.
Long-term investors know that diversification is important because it helps to reduce volatility over time. It's why you should own a couple dozen stocks, so that some will be doing well while others are struggling. Property sectors are similar, since some will be doing well as others are not. Good examples of this today are offices, which are struggling as employees are still avoiding a return to normal work patterns, and warehouses, which are seeing historically high rent increases and elevated demand. W.P. Carey, interestingly enough, has exposure to both areas. But that's not all it has in its portfolio.
To put some numbers on the REIT's property exposure, it generates 26% of rents from industrial assets, 24% from warehouses, 19% from offices, 18% from retail, and 5% from self-storage facilities. The remainder is classified as "other," which is actually a pretty big catch-all. Meanwhile, roughly 37% of W.P. Carey's rent roll is located outside the United States, mostly in Europe. It is easily one of the most diversified REITs you can own.
Source Fool.com
