The Best Mortgage Real Estate Investment Trust Stocks to Invest in Right Now
When investing for retirement, most people either set aside money in a retirement account or buy a home. Real estate is also one of the most common assets investors look to purchase as an investment. REITs are great stocks for real estate investors because they offer exposure to this industry without requiring the time or capital necessary to launch and manage individual properties. Residential real estate is generally the most significant expense when buying a home. Investors can make smaller investments by purchasing a real estate investment trust (REIT) stock. A REIT is a company that owns properties and can sell its shares on the public market.
KKR Real Estate Finance Trust (KREF)
The KKR Real Estate Finance Trust is a non-diversified REIT focused on making commercial real estate loans. The company has around $19.7 billion in assets. KREF has an attractive yield of 6.6% and a net income payout of about $1.26 per share. The stock has gained around 35% since the start of the year. KREF has a strong balance sheet, with assets more significant than its liabilities by $10 billion. The company has a healthy liquidity position of around $3.5 billion. KREF has high leverage but uses its capital efficiently to provide reasonable returns. The company’s assets are diversified by geography and industry. KREF is a good investment for real estate investors that want to focus on loans and mortgages.
Arbor Realty Trust (ABR)
Arbor Realty Trust is a non-diversified REIT that focuses on acquiring, owning, and managing single-tenant industrial properties. ABR has around $11.8 billion in assets and a healthy net income payout of $1.80 per share. The company is trading at a reasonable price of 19.5 times its earnings. The stock has gained around 10% since the start of the year. ABR has a healthy balance sheet, with assets more significant than its liabilities by $6.4 billion. The company has a healthy liquidity position of around $2.5 billion. ABR has high leverage but uses capital efficiently to make a high yield. The company’s assets are diversified by industry. ABR is a good investment for real estate investors that want to focus on industrial properties.
MFA Financial (MFA)
MFA Financial is a non-diversified REIT focused on commercial mortgage loans. The company has around $16.7 billion in assets. MFA has a healthy net income payout of $1.89 per share. The stock has gained about 20% since the start of the year. MFA has a strong balance sheet, with assets more significant than its liabilities by $9.8 billion. The company has a healthy liquidity position of around $3.2 billion. MFA has high leverage but sufficient capital to make good returns. The company’s assets are diversified by geography and industry. MFA is a good investment for real estate investors that want to focus on commercial mortgage loans.
Two Harbors Investment (TWO)
Two Harbors Investment is a non-diversified real estate investment trust that invests in healthcare real estate. The company has around $6.3 billion in assets. TWO has a healthy net income payout of $1.30 per share. The stock has gained about 5% since the start of the year. Two Harbors has a strong balance sheet, with assets more significant than its liabilities by $4.6 billion. The company has a healthy liquidity position of around $1.4 billion. TWO has high leverage but uses its capital efficiently to provide reasonable returns. The company’s assets are diversified by geography and industry. TWO is a good investment for real estate investors that want to focus on healthcare real estate.
Conclusion
Real estate is an important industry responsible for providing people with roofs over their heads. Investors can make smaller investments by purchasing a real estate investment trust (REIT) stock. A REIT is a company that owns properties and can sell its shares on the public market. When you invest in a REIT, you get a piece of the income from the company’s properties. You can choose from many REITs, and they each have their own focus. You can select a REIT with properties that you like and think will be successful. REITs are great stocks for real estate investors because they offer exposure to this industry without requiring the time or capital necessary to launch and manage individual properties.