Should You Invest in Single-Tenant Properties?
When the coronavirus pandemic hit in 2020, many stores got shut down, but those deemed essential stayed open. And that allowed the real estate investment trusts (REITs) that were their landlords to get through a difficult period in relative safety. For example, single-tenant property specialist Realty Income (NYSE: O) increased its dividend each quarter that year despite the pandemic.
Here's why you should consider adding a REIT that owns single-tenant properties to your portfolio.
Although not always the case, very often a single-tenant property is owned by a net lease REIT. What's so interesting here is that the tenant is responsible for most of the operating costs of the property it occupies, while the landlord, to vastly oversimplify things, simply collects the rent.
Source Fool.com
