Lots of good points, but I don’t agree with what Paapaa quoted. Take, for example, the NNN-ticker triple net lease REIT. It’s high quality, the dividend has been rising constantly, the dividend is a nice six percent or so, and there doesn’t seem to be any danger of a dividend cut. It’s even somewhat cheap at the moment. Vici is a second and Realty Income a third example. ADC is a fourth.
4 Likes
With the current dividend payment, there is only a 2 percentage point premium over the 10-year government bond, and FFO is significantly higher than the dividend distribution. In my opinion, a quite moderate dividend.
A six-percent dividend with assumed minimal growth is not a particularly attractive option. If you are attracted to high dividends, you should check out REIT preferred shares. A higher dividend yield and, above all, very secure.
Then there’s the familiar and boring Realty Income, which has about 6% (slightly under) and a dividend CAGR of approx. +2.9%.
1 Like
Realty Income is a very different company than it once was. Of course, its large size makes growth relatively harder, and as a result, the company has branched out quite a bit in various directions.
It works on paper, sure. But on the other hand, what happens when the already steadily decelerating growth slows down even further?
The conquest of Europe is still in its very early stages. Trump is only a temporary obstacle, so we should see some very good growth here in the long run.
So are you talking about Realty Income then?
Any experiences with Mercialys REIT? I’ve started to get interested in this, need to research it more. Although it only pays dividends once a year.
Maybe a bit off-topic, but does anyone have experience with REITs that also offer a DRIP option to Finnish investors, i.e., automatic reinvestment of dividends?
On the BDC side, I was pleasantly surprised that this is possible with Main Street Capital on an OP book-entry account. In addition to automation, the benefit is mainly that these DRIP purchases are made without a brokerage fee—at least in this case. For small quantities of shares, it’s quite a significant advantage.
2 Likes
Oh, so you can get dividends as shares automatically if you want at OP?
At Nordea, they send an envelope in the mail every month that has to be sent back if you want them as shares; often it arrives so late that it doesn’t make it back in time and you have to call customer service. It easily takes 30 minutes when you’re on the phone, first queuing for customer service which then transfers you separately to the investment side where you queue again. I once asked if this could be automated—apparently not 
.
Well, even this system is better than at Nordnet, where they blocked the purchase of the stock entirely.
2 Likes
Well, every month I get a query asking if I want to take it in shares or cash, but at least it goes to the online bank instead of the physical mailbox, and the default is shares. I tried to tell them they don’t even need to ask and to just go with shares permanently, but those queries keep coming anyway. It doesn’t really matter, though, since the default choice is what I want at the moment.
1 Like
This would be a nice addition to Nordnet as well. Or does it work already? 
(I highly doubt it works, as all their development work seems to be so slow. One example is Shareville, which was destroyed as a functional app by the company itself. I’ve stopped using Shareville altogether following the change)
3 Likes
Broker support is needed for DRIP (Dividend Reinvestment Plan), but Nordnet hasn’t been interested in this either, despite numerous requests. So everyone, please send your requests to customer service.
5 Likes
Apparently, Jussi Askola has released a REIT-themed book: The REIT Advantage: Earn Higher Returns with Lower Risk than Private Real Estate:
Hardcover. 286 pages. Price around €26.5 + shipping. €40 in total from Amazon Germany. I’ll take it under consideration.
11 Likes
Mandatum Trader supports DRIP, though it remains to be seen what the total taxation will look like. 15% withholding tax has been deducted; hopefully, the tax authority won’t slap the full capital gains tax on top.
2 Likes
Also sent a message to customer support 
Even though my success rate is quite poor, as none of the development ideas I’ve sent have (yet 
) seen the light of day.
Probably such bad development ideas that I’ve ended up on a blacklist 
1 Like
Trump wants to ban institutional investors from buying single-family homes
https://seekingalpha.com/news/4537467-sfr-pe-stocks-wilt-as-trump-seeks-to-ban-institutional-investors-from-buying-homes
2 Likes
1 Like
mREITs like NLY and AGNC apparently as direct beneficiaries, and on the losing side BlackRock, Progressive and others like them
1 Like
Apparently some short report came out on Patria Investments $PAX (found it when I was wondering about the drop)
https://x.com/SnowCapResearch/status/2015791677055606935
3 Likes
Farmland Partners is an interesting REIT on the New York Stock Exchange. The company invests in American agricultural land and leases it to local farmers. Since people always have to eat to stay alive, this could be an option for an investor looking for a relatively low but steady dividend yield and geographical diversification.
On the website, you can even find the location of every individual farm on a map, and for some, even photos of the farm itself. There seem to be, for example, vast grain farms in the Midwest and orchards in California; corn is grown in Louisiana. Some setups for wind and solar power have also been developed, even though Trump is now trying to scale them back in the US. The stock has been in a slight decline from its peak prices in 2022. I don’t own this company myself, or any other US stocks directly, but it piqued my interest in a way.
6 Likes