With geopolitical tensions escalating, and inflation heating up, investors are hunting for safe-haven investments that can generate reliable income while protecting capital.  One way to do that is with real estate investment trusts (REITs), which have historically performed well during periods of uncertainty thanks to their steady rental income, attractive dividend yields, and diversified property portfolios. 

With REITs, not only can you protect your portfolio from the latest round of Iranian war chaos, but you can also collect yield along the way.

Even better, even though markets have been on shaky ground, the S&P 500 real estate sector is up 12% this year, and managed to hit a 52-week high just yesterday. That tells us investors are out hunting for safety and strong yield, which we can gain exposure to with REITs such as:

Simon Property Group

Simon Property (NYSE: SPG) yields 4.13% and just hit a new high of $212.82.  It also owns or holds interest in 235 retail properties around the world. We should also note SPG just raised its dividend to $2.25 a share, which is payable on June 30 for shareholders of record as of June 9.

Earnings haven’t been too shabby either. In fact, in May, SPG posted first-quarter funds from operations that topped expectations, and raised its full-year FFO guidance to between $13.10 and $13.25 per share from $13 to $13.25. Plus, analysts at Scotiabank just raised its price target on SPG to $206 from $192. Compass Point raised its price target to $230 from $208.

We also have to consider that U.S. malls are staging a comeback. As noted by Coldwell Banker, “A major force behind this shift is Gen Z. While often labeled as digital-first consumers, their behavior tells a more nuanced story. In-store purchases among this group have climbed to 62%, pointing to a clear preference for physical retail when it offers something beyond convenience.”

Sincerely,

Ian Cooper