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The 10 Best Retail REITs of 2019: High Returns and Market Dominance

CEO Khai Intela
Introduction: Investing in Retail REITs When it comes to investing in real estate, Retail Real Estate Investment Trusts (REITs) have gained significant popularity. Retail REITs allow investors to access the lucrative retail market without the...

Introduction: Investing in Retail REITs

When it comes to investing in real estate, Retail Real Estate Investment Trusts (REITs) have gained significant popularity. Retail REITs allow investors to access the lucrative retail market without the hassle of managing physical properties. In this article, we will explore the top 5 performing and largest retail REITs of 2019. These companies have demonstrated consistent growth, high returns, and market dominance in the retail sector.

5 Best Performing Retail REITs

Agree Realty (ADC): Triple Growth in Just 5 Years

Agree Realty Image: Agree Realty REIT Logo

Leading the pack is Agree Realty (ADC), the top performing retail REIT with an impressive total return of 23.64% over the past 5 years. ADC has more than tripled in size since 2015 and boasts a vast portfolio of 645 retail properties across 46 states. With high-quality tenants like Sherwin Williams, Walgreens, and Walmart, ADC continues to deliver excellent results.

Realty Income (O): Consistent Dividend Payouts

Realty Income Image: Realty Income REIT Logo

Realty Income (O) is a powerhouse in the retail REIT industry. Listed on the NYSE, O has been paying an average annual dividend of 4.6% since its IPO in 1994. The company owns a massive portfolio of 5,797 retail properties, including tenants like Walgreens, 7 Eleven, and FedEx. With a focus on long-term leases and investment-grade tenants, Realty Income offers stability and reliable income for investors.

Getty Realty (GTY): Aggressive Growth Strategy

Getty Realty Image: Getty Realty REIT Logo

Getty Realty (GTY) has made its mark as the third most successful retail REIT, with a five-year total return of 17.04%. Specializing in free-standing gas stations and convenience stores, GTY owns 930 assets in 30 states. With an average remaining lease term of 10 years, GTY continues to pursue an aggressive growth strategy, doubling in size over the last decade.

National Retail Properties (NNN): Single Tenant Focus

National Retail Properties (NNN) focuses on single tenant, net lease retail properties. With a portfolio of 2,969 assets covering 30.5 million square feet across 48 states, NNN has demonstrated consistent growth and a total return of 14.93% over the past five years. Top tenants include 7 Eleven, Mister Car Wash, and Camping World.

Regency Centers (REG): The Largest Shopping Center REIT

Regency Centers (REG) takes the crown as the largest shopping center REIT with 425 shopping center assets. REG has generated a total return of 9.16% over the past 5 years. With a portfolio of 57 million square feet, REG consistently delivers a same store Net Operating Income (NOI) growth of 3.4% yearly. Key tenants include Publix, Kroger, and Safeway/Albertson's.

Largest Retail REITs by Market Cap

Top Retail REITs Image: Top Retail REITs

In addition to performance, market capitalization is an important indicator of a REIT's strength in the market. Let's take a look at the largest retail REITs based on market cap:

Simon Property Group (SPG): The Retail Giant

Simon Property Group (SPG), the largest retail REIT, dominates the market with a market cap more than double that of the second-largest REIT. Specializing in regional malls, SPG has generated a total return of 7.4% over the past 5 years and boasts a portfolio with a total occupancy of 95.1%. With tenants like Macy's, Gap, and JC Penney's, SPG remains a frontrunner in the retail industry.

Realty Income (O): A Reputable Retail REIT

Realty Income (O) not only ranks high in performance but also secures the second spot in terms of market cap. With a market cap of $21,709, Realty Income has become a force to reckon with in the retail REIT sector. Known for its monthly dividend payouts, Realty Income has consistently provided stable returns for investors for over 50 years.

Regency Centers (REG): Dominance in Performance and Market Size

Regency Centers (REG) continues to outperform its competitors, securing a spot on both the top-performing and largest retail REIT lists. With a focus on premium assets in desirable locations, REG has successfully forged alliances with grocers and retailers to expand into new markets. REG's emphasis on high-income demographics and strategic property selection has resulted in a strong market presence.

Federal Realty Invs (FRT): A Legacy of Dividend Payouts

As one of the oldest public REITs, Federal Realty Invs (FRT) has built a solid reputation through its consistent dividend payouts for the past 57 years. Focusing on shopping centers, FRT owns 104 assets totaling 24 million square feet. Although FRT's total return and dividend yield may trail behind its competitors, the company's commitment to long-term growth and stability remains noteworthy.

National Retail Properties (NNN): A Different Approach

National Retail Properties (NNN) stands out from its peers with its selective targeting of non-investment grade tenants. This strategy often leads to higher rents, consistent rent growth, and lower initial investment requirements. NNN consistently outperforms its peers and the S&P 500 in terms of total return. With a portfolio spanning 48 states, NNN has established itself as a leader in the retail REIT sector.

Investing in Retail REITs offers an opportunity to tap into the thriving retail market with the added benefit of diversification and professional management. Whether you are seeking high returns or market dominance, these top-performing and largest retail REITs of 2019 are worth considering in your investment portfolio.

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