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3 Safe High-Yielding REITs To Help You Sleep Well At Night

Nov. 01, 2021 7:00 AM ETHIW, MGP, OHI, SLG, VICI44 Comments


  • How is it possible to have both a "safe" and "high-yield"?
  • We will show you how.
  • Whenever a REIT is paying too much in dividends, it’s not in good shape to handle whatever’s around the corner.
  • This idea was discussed in more depth with members of my private investing community, iREIT on Alpha. Learn More »

Helping hikers

guvendemir/E+ via Getty Images

It seems almost surreal when you see an article titled “Safe High Yield”, so I’m sure you’re scratching your head now thinking, “This is just another click bait title, there is no way to find


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This article was written by

Brad Thomas profile picture

Brad Thomas has over 30 years of real estate investing experience and has acquired, developed, or brokered over $1B in commercial real estate transactions. He has been featured in Barron's, Bloomberg, Fox Business, and many other media outlets. He's the author of four books, including the latest, REITs For Dummies.

Brad, with his team of 10 analysts, runs the investing group iREIT® on Alpha, which covers REITs, BDCs, MLPs, Preferreds, and other income-oriented alternatives. The team of analysts has a combined 100+ years of experience and includes a former hedge fund manager, due diligence officer, portfolio manager, PhD, military veteran, and advisor to a former U.S. President. Learn more

Analyst’s Disclosure: I/we have a beneficial long position in the shares of VICI, OHI, SLG, HIW either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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Comments (44)

Brad Thomas profile picture
Just finished podcast interview with OHI's CEO, Taylor Pickett....

12 Reasons To Join iREIT On Alpha Today!

Brad Thomas profile picture
12 Reasons To Join iREIT On Alpha Today!

Brad Thomas profile picture
Another victory lap for iREIT on Alpha: seekingalpha.com/...
Chachi9337 profile picture
Brad, cool article...We learned in B-school to be wary of REITs. Professor(Wall St. practitioner) mentioned that RE moguls will take a bunch of seemingly quality properties public in a REIT. Later on you find out they've stuffed the REIT with complete junk properties and you end up the bag holder. Any thoughts?
Brad Thomas profile picture

That professor needs to read my new book...

....he/she is missing the opportunity of a lifetime...

....PLEASE let me know his name and address and I'm happy to send him a FREE book....

......And speaking of FREE books, you get a copy when you become a member of iREIT on Alpha....

All the best
Brad Thomas profile picture
VICI Is A STRONG BUY, Here's Why (Exclusive Video)

Brad Thomas profile picture
I just interviewed VICI's CEO for iREIT on Alpha members. I encourage all of you to become part of the growing iREIT Revolution. We have unmatched research and our CEO interviews are in video and transcript format. Many of our decisions are made after these interviews as we recognize that you must analyze both the horse and the jockey.... Try it for 2 weeks free of charge: seekingalpha.com/...
Does HIW invest in office parks? If so I would avoid that stock. I am an Uber driver and before the pandemic I would have 3-5 rides a say either from a train station to an office park or the opposite way in the afternoon. So far since late April of this year I have had 3 rides in 26 weeks! Many firms have said that their employees can continue to work from home. This can save a company tens of thousands a week.
seems those reit sectors have headwinds
Brad Thomas profile picture
@gutcheck Yes, that's true. We just published a new rec on iREIT that could generate 90% annual returns... come visit us at iREIT on Alpha. All the best
You keep shinning up VICI (also MPW) and they just go side-ways...maybe one more article will do the trick. I sold out of VICI when it recovered from the Covid Crash because I could see that it was only good for it's 5% divy and miminal growth. Same with MPW...
Brad Thomas profile picture
Braemar Hotels & Resorts: Who’s Ready To Roll The Dice?

With regard to VICI, wouldn't lower interest expenses INCREASE AFFO? You indicate that it was reasoning for the AFFO to be lowered along with share count increases. Thanks.
Brad Thomas profile picture
O crushed it ....

2022 AFFO per share guidance of $3.84 - $3.97, representing 9.2% annual growth based on the midpoint."

Dozens of CEO interviews over the next 10 days.....

Visit us at iREIT on Alpha: seekingalpha.com/...
@Brad Thomas You are welcome!
This is simply Brad Thomas at the top of his game. Straightforward with minimal cutesy stuff. He tells his picks with solid reasoning and rules out less certain alternatives. This is his area, which he needs to stick to. He is NOT a Jack of All Trades stock writer. Unless the major writer of coproduced writes response, he needs to stick with his true skills in REITS.

Every stock here is safe and decent buys for the reasons he cites. Bravo!
Office reits are going to face headwinds for the next decade. For every big lease that signs or renews there are 10 that are expiring and the tenant either doesn't renew or downsizes their space. Our firm, with 7,000 sq feet is NYC is letting our lease expire next year and we are getting a small suburban space for 1/3 the size , mostly for mgmt and accouting, with space for employees to come in for meetings. Pretty much every person I know in senior mgmt at other companies is planning something similar. Why fight the headwinds in these names , even if they look cheap - they are going to have a tough time maintaining FFO, let alone grow it.
“OHI has tools at its disposal such as security deposits and personal guarantees, that could provide the company time to transition the troubled operators.”

Does that sound like a SWAN?
Brad Thomas profile picture
@arnold.bird No, and that is why we did not include in the list ;)

"...we recognize that the price deterioration is directly correlated to dividend safety."
@Brad Thomas That’s an excellent point.
Does anyone think ORC is a GOOD or SAFE buy right now??
Brad Thomas profile picture
@yankeeman72 We dont cover rezi mREITs (except NRZ).... however, we do cover all commercial mREITs, BDCs, and midstream.... come visit us at iREIT on Alpha.. All the best
@yankeeman72 ORC is selling shares to pay the dividend. The share count rose from 117,500 on June 30, 2021 to 153,832 on October 12, 2021. Avoid ORC.
cachinga profile picture
Why are NNN shares sinking today? Are their dividends too high?
cachinga profile picture
@Brad Thomas Thanks, been wanting to add.
Jumped on VICI at 28.8 let’s see if this is a gamble stock in the good sense. I‘d rather collect from gamblers than gamble myself
Brad Thomas profile picture

Nice job....

I'm curious if you see the same value proposition with prisons, LOL...

All the best,


PS: Check out my weekend blog:seekingalpha.com/...
One of the things that I don’t think is getting enough coverage is the CPI linked leases that many reits have (like VICI). Renewing leases could jump as much as 5% in 2022. That increase falls directly to the bottem line! This will increase FFO significantly.
Brad Thomas profile picture
@BMoor Yes, that's a good point.... I'm writing an inflation article now for iREIT members. Thanks for reading and all the best
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