High-yield real estate investment trusts (REITs) continue to attract income-focused investors, especially those looking for steady passive income. Based on TipRanks’ comparison tool, three real estate investment trusts currently stand out with yields above 9%: Annaly Capital Management (NLY), Blackstone Mortgage Trust (BXMT), and Apollo Commercial Real Estate Finance (ARI).
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Let’s take a look at these REITs in detail.
Annaly Capital Management (NLY)
Annaly Capital Management is a mortgage REIT that invests in residential and commercial real estate debt. The company stands out for its high income potential, offering a dividend yield of about 12.8%, one of the highest in the sector.
The stock trades at around $22 with a market cap of roughly $15.8 billion. It also carries a Strong Buy analyst rating, with NLY average price target of $24.39 implying about 10% upside from current levels.
Blackstone Mortgage Trust (BXMT)
Blackstone Mortgage Trust is a commercial real estate finance company focused on senior loans backed by properties. It offers a dividend yield of about 9.7%, making it an attractive option for income-focused investors.
The stock trades near $19.5 with a market cap of about $3.3 billion. Analysts currently have a Moderate Buy rating on the stock, with BXMT average price target of $21.50 implying around 10% upside potential.
Apollo Commercial Real Estate Finance (ARI)
Apollo Commercial Real Estate Finance is another mortgage REIT that focuses on commercial real estate loans and investments. The stock offers a dividend yield of about 9.3%, providing steady income potential.
Shares of ARI trade at around $10.8, with a market cap of roughly $1.5 billion. The stock carries a Moderate Buy rating, with ARI average price target of $11.75, seeing close to 9% upside from current levels.
Bottom Line
These REITs offer strong income potential with yields above 9%, but investors should also keep an eye on interest rates and real estate market trends before investing.