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Author Bio
Reuben Gregg Brewer believes dividends are a window into a company s soul. He tries to invest in good souls.
The real estate investment trust (REIT) space has a few bellwether names in it, but there s one company that far too often gets left out of the conversation:
W.P. Carey (NYSE:WPC). There are some good reasons for this, but it s still a shame. Here s a quick look at this wonderful net-lease REIT and the success it has achieved.
Second-class citizen
When investors think about net-lease REITs, the first name that comes to mind is probably
Realty Income, the niche s largest player. Net-lease REITs own single-tenant properties where the lessees are responsible for most of the operating costs. Often a REIT will buy directly from a company and lease the asset right back under a long-term contract, effectively allowing the lessee to raise capital for other purposes. Realty Income may be the biggest name in the space today but W.P. Carey act
The Southern Company (NYSE:SO) are dividend stocks that have proven you can count on them to keep paying. Here s a quick look why.
1. A bellwether REIT
Real estate investment trust (REIT) Realty Income owns single-tenant properties, and its lessees are responsible for most of a property s operating costs. This is known as a net lease and is generally considered a low-risk way to invest in real estate.
Realty Income has a massive portfolio of around 6,600 properties, with 84% of rents coming from the retail space, 11% from industrial assets, and 3% from offices. (The rest is tied to an opportunistic agriculture investment.) Roughly 6% of rents come from the United Kingdom, and roughly half of its rent roll is backed by investment-grade tenants.