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It's Cyber Monday: These 2 Mall REITs Are Offering Investors Better Than Average Yields

Using data gathered from Sept. 30, 2019, SP Global reported that over a 10-year period, real estate investment trusts (REITs) dealing with the retail industry had an average annual return of 10.1%. Not only do retail REITs perform well over the long term, they also boast a five-year average dividend yield of 4.2%.

REITs in the retail industry, with properties in strip malls or traditional malls, typically experienced an annualized three-year volatility of over 50% from July 2009 to July 2012. With the holiday season already in full swing, it may be a good time to consider an investment in a real estate investment trust operating in the retail industry.

Here are two retail REITs with yields higher than the average for their industry sector.

Also Read: 3 REIT Focused ETFs Paying Consistent Dividends, Poised To Benefit From Fed Pivot

Urstadt Biddle Properties Inc. NYSE:UBA is offering a dividend yield of 5.04% or 95 cents per share annually, conducting quarterly payments, with a track record of increasing its dividends once in the past year. Urstadt Biddle Properties owns real estate investments, which consist principally of investments in income-producing properties, primarily in neighborhood and community shopping centers in the metropolitan New York tri-state area, outside the City of New York.

Urstadt Biddle Properties owns and operates over 80 properties with its top three tenants including:

  • Stop & Shop which has eight stores, making up 8.2% of total annual base rent of properties.
  • CVS Health NYSE:CVS has ten stores, or 4.7% of total annual base rent of properties.
  • TJX Companies NYSE:TJX has six stores, or 3.4% of total annual base rent of properties.

Brixmor Property Group Inc. NYSE:BRX is offering a dividend yield of 4.58% or $1.04 per share annually, using quarterly payments, with a track record of increasing its dividends once in the past year. Brixmor Property Group is an internally managed REIT and leases its rentable areas to retailers, restaurants, theaters, entertainment venues, and fitness centers, with the company's tenants consisting of large department stores, discount retailers, and grocery stores.

Brixmor Property Group has 378 retail centers comprising approximately 67 million square feet of prime retail space, and is a real estate partner to over 5,000 retailers including TJX, Kroger NYSE:KR, Publix Super Markets and Ross Stores NASDAQ:ROST, among others.

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