Realty Income or Agree Realty During a REIT Sell-Off?
Yields are rising, and investors are selling REITs, opening up an opportunity to buy reliable, high-yield dividend stocks for long-term investors.
As of this writing, the average real estate investment trust (REIT) has experienced a decline of approximately 8% over the past three months. Two notable players in this space, Realty Income (NYSE:O) and Agree Realty (NYSE:ADC), have seen their respective stocks drop by 14% and 16% respectively. The primary catalyst behind this sell-off is the recent rise in interest rates and bond yields.
For investors seeking dividend income, this market correction might present a compelling opportunity to acquire these high-yielding stocks at a discounted price. Both Realty Income and Agree Realty are classified as net-lease REITs, which means their tenants are financially responsible for a majority of the property's operating expenses.
These companies often acquire properties directly from the tenants through a sale-leaseback arrangement, allowing them to free up capital for various purposes, such as business expansion or enhancing their balance sheets.
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