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3 REITs positioned to benefit if Treasury yields decline

MarketBeat Ratings highlights Realty Income, American Tower, and Public Storage as candidates, citing a Realty Income dividend yield of about 6.0% and the role of REIT financing costs versus Treasury yields.

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MarketBeat Ratings argues that certain REITs may be better positioned in a scenario where Treasury yields start to fall, because lower rates could reset valuations after a period of repricing.

The outlet says investors can look at the spread between a REIT’s dividend yield and the yield on a near risk free Treasury bond, noting that narrower premiums may suggest REITs have already assumed worse interest rate outcomes.

Among the names flagged, Realty Income Corp. is described as a monthly dividend REIT with a three decade history of distributions, with a dividend yield of about 6.0%.

MarketBeat Ratings also points to American Tower and Public Storage, adding that analysts have issued mixed Buy and Hold ratings on each REIT.

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