5 Best REIT Stocks to Buy in June 2021

Today, there are hundreds of REIT stocks available for investors. With the real estate market returning to booming levels, investors will undoubtedly be looking out for some of the best REIT stocks to maximize their returns. Below, we have a few names that should be gearing up to make even bigger moves in the coming months

1. American Tower Corporation (NYSE: AMT)

Kicking off our list of the best REIT stocks is American Tower- a REIT that focuses on telecommunications infrastructure. American Tower owns 181,000 cell towers, including an estimated 41,000 in the United States and 75,000 in India. Other locations include Africa, Europe, and South America.

The company is in a unique position to boost profits as it can increase the number of tenants it gets per tower. Data from Statista shows that mobile penetration is expected to grow by about 5 percent this year. With 5G taking shape and data usage also increasing, AMT is poised to sign new tenants and grow its business.

American Tower is also expanding aggressively. The company has closed the deal to acquire Insite Wireless – one of the leading operators of communication lines in Canada.

Currently, AMT has generated over 5% annual adjusted growth in Funds From Operation (FFO) – a critical pointer of REIT profitability. The stock also stayed resilient during the coronavirus pandemic.

AMT is currently priced at $270.47 – just a few points off its all-time high of $470.62. The stock has significantly outpaced its 20-day simple moving average (SMA) of $259.65, although its relative strength index (RSI) of 70.80 shows that it is approaching the overbought status.

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2. Equity LifeStyle Properties (NYSE: ELS)

Equity LifeStyle Properties is a REIT with sites that allow tenants to locate recreational vehicles (RVs), resort cottages, and manufactured homes. Its properties are mostly located in vacation sites and resorts, and it currently has about 158,000 housing sites across 33 states.

With Equity LifeStyle, tenants own the units placed on-site, and they pay rent to the REIT under annually-renewing leases. Thanks to its business model, the company has managed to record average same-site income growth of 4 percent annually – higher than apartment REIT and overall sector growth levels.

The company has also expanded its portfolio in fiscal 2021, thanks to the acquisition of new properties in Florida, California, Virginia, and New Jersey. With analysts forecasting $2.31 in FFO per share for the year, the REIT won’t have a problem covering its $1.37 dividend.

As for the company’s stock, it is unsurprisingly close to its all-time high of $76.85 – which is set on Thursday. With a current price peg of $75.95, it is expected that it reaches a new zenith before the week runs out.

A bigger move will push ELS further above its 20-day SMA of $73. Its RSI also stands at 68.98, showing that ELS is quite healthy.

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3. Innovative Industrial Properties Inc. (NYSE: IIPR)

With the cannabis industry setting up for major growth in the long term, this company makes an entry on our list of the best REIT stocks.

Innovative Industrial Properties is a publicly-traded REIT that acquires cannabis processing and cultivation properties. It then leases these properties to growers under triple-net, long-term contracts.

The company operates the only NYSE-listed REIT that caters to medical-use cannabis.

With the medical cannabis industry expected to hit $30 billion in valuation by 2026, this company has a lot of upside for real estate investors.

IIPR’s performance has already been quite impressive. Its adjusted FFO is up 79 percent, and the stock itself is getting ready to test its all-time high of $221.96 again.

The stock dipped following its peak in February, and it has been consolidating over the past three months. However, the current uptrend began in May and the stock has so far sustained its position.

Price technicals are strong, with IIPR comfortably beating its 20-day SMA of $183.56. Its RSI stands at 60.53 and has been rising for a month. But, that shouldn’t deter real estate investors too much.

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4. Digital Realty Trust Inc. (NYSE: DLR)

Digital Realty is a REIT that serves customers in the technology sector.

From communications service providers and IT companies to fintech and social media platforms, the company has a broad footprint. It also covers some firms in manufacturing, consumer products, and healthcare.

Overall, Digital Realty is one of the largest REITs in the United States. Given the trajectory of its core customers, it could very well be on an upsurge for the rest of the year.

In terms of properties owned, Digital Realty is undoubtedly the largest data center real estate operator. It has 2894 data centers across 23 countries and six continents.

With the entire world relying more on the internet due to the pandemic, demand for content and services has shot through the roof.

Digital Realty is also set to benefit from trends like the emergence of 5G technology.

It has produced three consecutive quarters of positive FFO growth in this fiscal year, and its full-year guidance has been raised to $6.115 per shareable to easily cover the $4.48 dividend.

Entering 2021, DLR had a strong performance. The stock dipped by 16 percent in February, dropping from $149.96 to $125.22. However, it has rebounded strongly and is moving ahead again.

With a current price peg of $161.52, the stock had gained 29 percent from its yearly low. It is also just 1.6 percent off its all-time high of $164.23.

Technicals are holding strong, with DLR comfortably beating its 20-day SMA of $155.58 and an RSI of 65.22.

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5. Physicians Realty Trust (NYSE: DOC)

Physicians Realty Trust features on our best REIT stocks list. This is a healthcare REIT that focuses on providing medical office space to national and regional healthcare networks. The REIT holds 269 properties, all spaced across 31 states and valued at about $5 billion.

Currently, Physicians Realty provides the highest percentage of investment-grade tenants among all healthcare REITs.

It also has the most facilities situated at off-hospital campuses.

With patients and providers now preferring the healthcare delivery option from outpatient facilities, real estate investors will be looking towards REITs like this.

The 2020 lockdown stunted DOC’s growth, but the stock is rebounding pretty well this year.

The stock is currently trading at $19.42 – just a few points off its all-time high of $22.05. $19.42 is also the stock’s yearly high, showing that it is in a good position for future gains.

DOC is conveniently bearing its 20-day SMA of $18.66, and the RSI stands at a comfortable 65.47.

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