We were looking for U.S.-based REITs with the following criteria:
- Specializing in office, industrial, residential or retail
- Market cap of more than $1 billion
- 90-day return of 10 percent
- Price to Book ratio of less than 2.0
- Estimated quarterly cash flow of more than 10 percent
But with real estate in general looking like its recovering a bit, why buy REITs when you can buy actual buildings or homes?
“The REIT format gives you incredible diversification. Our properties are spread all over the country. Our tenant base is extremely diversified,” explained Alexander. “[REITs] also have liquidity that you can sell the stock at any time.”
With a $3 billion market cap, Weingarten Realty has more than 56 million square feet of leasable space across 22 states. The company’s top 10 tenants—which account for nearly 14 percent of revenue—include Kroger, Safeway, The Sports Authority, Best Buy, and Home Depot.
Watch “Street Signs” with Brian Sullivan and Mandy Drury on CNBC Monday-Friday at 2p Eastern Time.