Real Estate Investment Trusts (REITs) are publicly traded companies that own, operate, or finance income-generating properties, ranging from commercial buildings to residential complexes. Also, REITs are required to distribute a significant portion of their taxable income as dividends, making them an appealing option for those seeking steady cash flow.

Thus, investors looking for REITS offering more than 3% dividend yields may consider looking into VICI Properties Inc. (VICI), Daito Trust Construction Co.,Ltd. (DIFTY), and Rithm Capital Corp. (RITM) with potential growth prospects.

Furthermore, different sectoral REITs are thriving and gaining momentum in today’s market. Industrial REITs, benefiting from the e-commerce boom, continue to see strong demand for warehouse and logistics space. Meanwhile, data center REITs are thriving due to the rising need for cloud computing infrastructure. Even retail REITs, once under pressure from e-commerce disruption, are finding stability as experiential shopping and premium locations drive foot traffic.

Moreover, the REIT market is expected to grow to $350.20 billion by 2028, at a CAGR of 2.9%, driven by the increasing demand for real estate assets. REITs offer a compelling mix of income generation and capital appreciation.

Considering such encouraging industry sentiments, let’s look at the fundamentals of the top three REIT stocks.

VICI Properties Inc. (VICI)

VICI is an S&P 500 experiential REIT that is engaged in the business of owning and acquiring gaming, hospitality, and entertainment destinations, subject to long-term triple net leases, including Caesars Palace Las Vegas, MGM Grand, and The Venetian Resort Las Vegas, three of the most iconic entertainment facilities.

Buoyed by strong financial performance, the company paid its shareholders a quarterly dividend of $0.43 per share on January 9, 2024.

VICI pays an annual dividend of $1.73, which translates to a yield of 5.81% at the current share price. Its four-year average dividend yield is 4.95%. Moreover, the company’s dividend payouts have increased at a CAGR of 7.7% over the past five years.

VICI’s total revenue for the fiscal third quarter that ended September 30, 2024, increased 6.7% year-over-year to $964.67 million. The company’s attributable net income came in at $732.89 million, representing an increase of 31.7% from last year.

In addition, AFFO and AFFO per share attributable to VICI common stockholders stood at $593.86 million and $0.57, up 8.4% and 5.6% year-over-year, respectively. Furthermore, its adjusted EBITDA rose 7.1% from the prior year’s period to $778 million.

Street expects VICI’s FFO for the fiscal first quarter (ending March 2025) to increase 18.9% year-over-year to $0.68. Its revenue is expected to increase 2.3% year-over-year to $973.07 million. Further, VICI topped the street revenue estimates in each of the trailing four quarters, which is promising.

Moreover, VICI’s revenue has grown at CAGRs of 36.4% and 33.9% over the past three and five years, respectively. In addition, its EBIT increased at 36.2% CAGR over the past three years.

Shares of VICI have gained 4.3% over the past nine months to close the last trading session at $29.79.

VICI’s stance is apparent in its POWR Ratings. The stock has a B grade for Stability and Quality. The POWR Ratings are calculated by considering 118 different factors, each weighted to an optimal degree.

Among the 16 stocks in the REITs - Hotel industry, it is ranked first. Click here to see the additional VICI ratings (Growth, Value, Momentum, and Sentiment).

Daito Trust Construction Co.,Ltd. (DIFTY)

Based in Tokyo, Japan, DIFTY designs, constructs, and rents apartments and condominiums. It operates through three segments: Construction; Real Estate; and Finance. The company designs and constructs rental housing and other structure construction, ironwork and construction, building management and renovation, and whole building leasing.

On November 29, the company paid a semi-annual dividend of $0.46 per share. DIFTY pays an annual dividend of $0.91, which translates to a yield of 3.33% at the current share price. Its four-year average dividend yield is 3.73%.

For the fiscal third quarter that ended December 31, 2024, DIFTY’s net sales amounted to ¥1.36 trillion ($8.78 billion), with a 7.3% year-over-year increase. Its gross profit stood at ¥233.29 billion ($1.50 billion), up 13.6% year-over-year, while its operating income grew 26.5% from the year-ago value to ¥102.79 billion ($662.81 million). Moreover, the company’s net income amounted to ¥76.87 billion ($495.66 million), increasing 27.8% from the prior year’s period.

The consensus revenue estimate of $3.03 billion for the fiscal fourth quarter (ending March 2025) represents a marginal increase year-over-year. For the first quarter (ending June 2025), its revenue is expected to grow 6.3% from the prior year to $3.16 billion.

Over the past three and five years, DIFTY’s net income grew at CAGRs of 9.6% and 3.3%, respectively, while its levered FCF grew at 16.5% CAGR over the past five years.

The stock has declined marginally over the past nine months to close the last trading session at $25.76.

DIFTY’s bright prospects are reflected in its POWR Ratings. The stock has an overall rating of B, which translates to a Buy in our proprietary rating system.

It also has an A grade for Stability and a B for Value. Within the REITs - Diversified industry, it is ranked first out of 43 stocks. Click here to see DIFTY’s ratings for Growth, Momentum, Sentiment, and Quality.

Rithm Capital Corp. (RITM)

RITM is an asset manager focused on real estate, credit, and financial services. The company operates through four segments: Origination and Servicing; Investment Portfolio; Mortgage Loans Receivable; and Asset Management. 

On January 31, demonstrating its commitment to returning value to shareholders, the company paid a quarterly dividend of $0.25 per common share.

RITM pays an annual dividend of $1, which translates to a yield of 8.69% at the current share price. Its four-year average dividend yield is 9.27%. Moreover, its dividend payouts have increased at CAGRs of 3.6% over the past three years.

In the nine-month period that ended September 30, 2024, RITM’s revenues increased 1.3% year-over-year to $3.07 billion. The company’s attributable net income stood at $571.83 million, while its net income per share came in at $1.16.

Analysts expect RITM’s revenue for the current year (ended December 2024) to increase 13.5% to $4.31 billion and its EPS to be $1.92. For the fiscal year 2025, its revenue and EPS are expected to grow by 11.7% and marginally from the prior year to $4.82 billion and $1.94, respectively.

RITM’s revenue and normalized net income have grown at CAGRs of 20.8% and 19.2% over the past five years, respectively. Likewise, the company’s levered FCF has increased at a CAGR of 6.5% over the past three years.

Over the past three months, the stock has surged 8.1%, closing the last trading session at $11.33.

It’s no surprise that RITM has an overall rating of B, equating to a Buy in our POWR Ratings system. It also has an A grade for Sentiment and a B for Value. It is ranked #3 out of 26 stocks in the REITs - Mortgage industry.

Beyond what is stated above, we’ve also rated RITM for Growth, Momentum, Stability, and Quality. Get all RITM ratings here.

What To Do Next?

Get your hands on this special report with 3 low priced companies with tremendous upside potential even in today’s volatile markets:

3 Stocks to DOUBLE This Year >

VICI shares were trading at $29.79 per share on Tuesday afternoon, down $0.00 (0.00%). Year-to-date, VICI has gained 1.99%, versus a 2.67% rise in the benchmark S&P 500 index during the same period.

More...