3 High-Yielding REITs: Is The Thrill Of Victory Worth The Agony Of Defeat?

Jan. 24, 2025 1:27 PM ETABR, REFI, IIPR34 Comments
(12min)

Summary

  • I rarely recommend double-digit yielding REITs as they are speculative, but I provide fundamental analysis for those interested in high-yield investments.
  • Arbor Realty, Chicago Atlantic, and Innovative Industrial offer high dividends (11%-12%) but come with significant risks, including potential dividend cuts and market volatility.
  • Arbor Realty has a 12.9% yield but faces default pressures and a 100% payout ratio, making its dividend speculative despite historical growth.
  • Chicago Atlantic and Innovative Industrial are involved in the cannabis sector, presenting high yields but also high risks due to regulatory uncertainties and tenant defaults.
  • Looking for a helping hand in the market? Members of iREIT®+HOYA Capital get exclusive ideas and guidance to navigate any climate. Learn More »

The happy emotions of men and women having good time on a roller coaster in the park

anton5146

Recently, I wrote an article on three high-yielding REITs with dividend yields of 8% to 10%.

As promised, I’m now stepping up the yield curve to write on REITs that yield from 11% to 12%.

Before getting started, I

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This article was written by

119.51K Followers

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, along with HOYA Capital, lead the investing group iREIT®+HOYA Capital. The service 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.

Note: Brad is also related to Nicholas Thomas who contributes to Seeking Alpha.

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Analyst’s Disclosure:I/we have a beneficial long position in the shares of ABR, NLCP, IRET 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.

Author's Note: Brad Thomas is a Wall Street writer, which means he's not always right with his predictions or recommendations. Since that also applies to his grammar, please excuse any typos you may find. Also, this article is free: Written and distributed only to assist in research while providing a forum for second-level thinking.

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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Related Stocks

SymbolLast Price% Chg
ABR--
Arbor Realty Trust, Inc.
REFI--
Chicago Atlantic Real Estate Finance, Inc.
IIPR--
Innovative Industrial Properties, Inc.

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