List of the best REITS (Reet) with high dividends that you can buy with the DEGIRO
Updated February 2020
DEGIRO Reits: Introduction
Welcome to my post for REITs in DEGIRO. The motivation of this post entry is to explain what is an REIT, why REIT is an option investment, and therefore provide some REITs that I consider nice to have in a portfolio. In addition, some of those REITs are part of My Portfolio, meanwhile some of them are on my watchlist.
I tried to make a nice representation of REITs considering a diversification in the nature of the REIT portfolio, as well as, the localization of their assets.
Disclaimer: Investing involves risks.
What means REIT?
REIT, pronounced “Reet” stands for Real Estate Investment trust. It is a company which invests in real estate related assets.
We can split the REIT in two different types: Equity REIT and Mortgage REIT.
What is an Equity REIT?
Equity REIT (REIT) is a company who owns real estate related properties with the aim to produce a periodic income. As a results, such income will mean earnings for the company.
The term REIT has been globally adopted, although in some countries they named this type of company differently. For example in Spain, they are named SOCIMI. Every country has introduced as well its own regulations for REIT, however as common factors in all the countries we can mention:
- They should have the majority of its assets in Real Estate.
- It should provide the majority of its income to the stakeholders via dividends.
- The REIT incomes should come mainly from Real Estate.
Okay, so far we understood that in simply words, REIT is a company that mainly invest in real estate and must benefit back its income to the stakeholders. So far, It sounds a good investment vehicle in the area of Real Estate. However, what it is also important to understand, as explained below, it is in which type of real estate the company has in the portfolio.
What is a Mortgage REIT?
Mortgage REIT is a company who purchases mortgages and mortgages backed securities, in the space of real estate, for both, residential and commercial. With the same essence of Equity REIT, mREIT will provide via dividends the incomes that they generate from the investments in the mortgages.
DEGIRO REIT: REIT Portfolio Classification
We could easily classify the following real estate assets type:
- Student Residential
- Retail / Commercial
- Self Storage
- Data Centres
- Energy and Infrastructure Assets
I find personally the above basic classification very important while we invest in REIT. I will come to that point in the next chapter.
What should I look while investing in a DEGIRO REIT?
From my perspective, the following considerations are worth to consider while investing in a REIT:
- REIT Portfolio Classification: As enumerated above, the Portfolio matters heavily while investing in a REIT. For example, it is well-know that brick-and-mortar retailers are having bad time to compete against e-commerce. Another example is that, in some cities in the world, some regulations are being approved to restrict rental increases. Therefore, those facts can damage the income of a REIT, if it has big exposure to them.
- History of Earnings: Understanding the history of the earning, provides some security. In other words, REIT with bad history of earning can be a red flag.
- Tenants of their assets: In the end, the REIT will obtain income from the Tenants. If their tenants cannot pay the rent, it can mean losses for the REIT.
- Percentage of occupation: Having assets without tenants, only brings expenses without any income. That is to say, the percentage of occupation should remain high, without always the REIT being forced to sell assets to avoid a bad number here.
- Management: Sometimes, as small investor, it is not easy to know who is the management of the REIT. However, this plays an essential role, so always you will find some information on the internet about the company Management.
Invest in DEGIRO REIT vs Invest in Real Estate Crowdfunding?
From my side, I invest in both options and I find it very different. Through REITs you can easily invest in different areas, where Real Estate Crowdfunding focuses mainly in Residential and Commercial, and development projects.
Can I Buy REITs in an ETF?
The fast answer is yes, the are some ETFs that offers exposure to the different REIT. As a result, this can be a nice formula also to invest in the REITs, since you will obtain easily a nice diversification. For example, DEGIRO as part of their ETFs without fees, offer some ETFs of IShares focused in the Real Estate:
ASIA PROPERTY YIELD UCITS ETF: Focusing in the Asia Region. IE00B1FZS244
European Property Yield UCITS: Focusing in Europe. IE00B0M63284
Developed Markets Property Yield UCITS ETF: Focusing in all Developed Markets. IE00B1FZS350
US Property Yield UCITS ETF: Focusing in the US region. IE00B1FZSF77
Conclusion of DEGIRO REITS
To sump up, you can buy stocks of REIT with different portfolio assets type, in different countries and receive the corresponding benefits using DEGIRO. Below you will find a comprehensive list covering REIT in different countries and different sectors that either I own stock or they are on my watchlist, since I consider them interesting.
Please, feel free to leave a comment below if you any question, something you are missing on this post, or a simple hello 😉
DEGIRO REITS IN GERMANY
Vonovia – Residential, yield 3,09% paid yearly
Vonovia is one of the leading real estate company in Germany, owning more than 395.000 residential units in Germany. It means, extremely diversified across different regions and towns. In addition, they recently acquired a major stake in the Swedish company Hembla. So, they have now some presence in the Swedish real estate market.
I owned it time ago.
Deutsche Wohnen – Residential, yield 2,5% paid yearly
Key player in Germany, which is suffering a bit because 70% of its 167.000 residential units are in Berlin, but still one of the biggest in Germany.
DEGIRO REITS IN BELGIUM
XIOR STUDENT HOUSING – Student Accomodation, yield 3,38% paid semi-annually
Xior Studend Housing is a Belgium REIT working in student housing sector, heavily in Belgium and Netherlands, but with planned growth to Spain and Portugal. On top fo that, currently they have 6.752 rooms with an occupancy of 98.32%, not bad.
Dividends keeps growing and made a couple of capital increases successfully.
I hold XIOR Student Housing, being one of the biggest positions.
DEGIRO REITS IN UNITED KINGDOM
ATLANTICA YIELD – Renewable Energy generation assets, yield 6% paid quarterly
Although Altlantica Yield is not a REIT, I wanted to include this company in the list, due the nature of their assets, the high yield and low volatility. They headquarters are in London, however they operate in NASQAD.
Atlantica Yield in fact is a YieldCo, former known as Abengoa Yield before it was sold to Algonquin Power & Utilities by Abengoa.
As defined in their website: Atlantica is a total return sustainable infrastructure company that owns, manages and acquires a diversified portfolio of contracted assets in the power and environment sectors.
They have a portfolio of renewable energy, efficient natural gas, electric transmission line and water contracted assets in several countries, like Spain, USA, Algeria and other countries.
DEGIRO REITS IN SPAIN
Merlin Properties – Offices and Commercial, yield 2,45% paid semi-annually
If you follow the Spanish market, then you will probably have heard about Merlin Properties. In addition, they made strong acquisitions in recent past, like the purchase of Torre Glories in Barcelona. Their portfolio is a mix between offices, commercial spaces, shopping malls and warehouses.
Colonial – Offices and Warehouses, yield 1,59% paid yearly.
Based in Barcelona, they own offices in Barcelona, Madrid and Paris, while the warehouse portfolio is mainly in Barcelona. Started to pay dividend in 2016 after stopping during the Spanish recession. Note that this company has no dividend policy stablished.
ARIMA REAL ESTATE SOCIMI – Offices, no dividend.
Small REIT with headquarters in Madrid. They focus mainly in offices in Madrid with good location.
DEGIRO REITS IN FRANCE
Gecina – Offices and Residential, yield 3,60% paid semi-annually
One of the biggest REIT in Europe with the largest residential portfolio in Paris.
DEGIRO REITS IN CANADA
Brookfield Properties Partners – Offices and Retail, yield 6,36% paid quarterly
It is part of my portfolio. Part of the Group Brookfield, which also operates other assets, like renewable or infrastructure. Very diversified portfolio, with offices, retail, multifamily and hospitality.
Smartcentres – Retail and Commercial, yield 5,80% paid monthly.
I own it. They focus heavily in retailers, being Wal-mart one of the top tenants. This ensures a steady income, that it is translated to a monthly dividend.
Granite Real Estate Investment Trust – Warehouses, yield 4,16% paid monthly.
On top of my watchlist. Focusing in warehouses in different global locations, like United States, Canada, Germany and some other countries in Europe. I like such diversification.
DEGIRO REITS IN UNITED STATES
STAG Industrial – Warehouses and Industrial Properties, yield 4,60% paid monthly
Owning and managing industrial properties in throughout the United States. So, their Portfolio consists in 430 building.
Iron Mountain – Data Center, yield 7,30% paid quarterly.
In the era of big data, they own and operate data centres in 50 countries. I like the sector, with potential for the future, I took positions time ago.
New Residential Investment Corporation – yield 13,16& paid quarterly.
Being part of my portfolio. They focus on residential mortgages related assets in the United States.
Americold Realty Trust – Temperature Controlled Warehouses, yield 2,02% paid quarterly.
Americold Realty Trust is an US REIT company that owns and operates temperature-controlled warehouses, which is a very unique space. I took position time ago of this REIT in my portfolio.
Realty Income – Retail, yield 3,50% paid monthly.
Very famous REIT, as they pay monthly dividend and it has been increasing in the past years. They focus in long-term lease agreements.
Simon Properties – Recreational, yield 5,45% paid quarterly.
With entertainment properties and mixed-use properties in America, Europe and Asia, being part of S&P 100 company.
EPR Properties – Recreational, yield 6,10% paid quarterly.
I hold positions since time ago. They focus in entertainment and recreation market.
Weyerhaeuser Company – timber, yield 4,58% paid quarterly.
One of the world largest private owners of timberlands. Operating in the US and Canada.
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