Commercial real estate investment trusts (REITs) in the industrial sector own and operate buildings including factories, warehouses, distribution hubs, and logistics parks in order to generate income. Industrial real estate investment trusts make money through property leasing.
The growing need for warehouse and production space is good news for real estate investment trust (REIT) investors in the industrial sector.
In recent years, the field has grown due to factors such as the expansion of e-commerce and the necessity for effective management of supply chains. Like other real estate investment trusts (REITs), industrial REITs have a heavy duty to pay out dividends to their stockholders.
Prologis Distribution centers, warehouses, and other industrial buildings totaling almost 1.2 billion square feet are owned or managed by Prologis Inc. (NYSE:PLD), making it one of the biggest real estate companies in the world. Companies including Amazon (NASDAQ:AMZN), Home Depot (NYSE:HD), FedEx (NYSE:FDX), and UPS (NYSE:UPS) are among its biggest customers.
Currently, Prologis offers a yield of around 2.7% with its quarterly dividend payment of $0.87 per share, which amounts to $3.48 per share yearly. This is a fantastic investment for dividend income and dividend growth because the firm has increased its dividend for ten years in a row.
Stag Manufacturing Approximately 568 industrial properties totaling 112 million square feet were owned and operated by Stag Industrial (NYSE:STAG) as of September 30, 2023, throughout 41 states. Amazon, FedEx, XPO (NYSE:XPO), and WestRock (NYSE:WR) are among Stag's most important customers, just as they are for Prologis.
Stag has a current yield of over 3.9% thanks to its $0.123333 monthly dividend, which works out to around $1.48 per share yearly
Since its initial public offering in 2011, Stag has increased its yearly dividend each year, making it both a monthly income investment and a dividend-growth bet.