VICI - If I Had To Put A Third Of My Money Into A Single REIT
2024-03-27 07:00:00 ET
Summary
- Putting a third of your money into a single investment asset, such as a REIT, is not recommended due to the lack of diversification.
- Even the best REITs can face unexpected challenges, as seen during the pandemic when hotels and malls suffered significant losses.
- Suggestions for REITs to consider include Rexford Industrial Realty, Alexandria Real Estate, and VICI Properties.
The other day, someone commented on my recently published piece :
Brad, thanks for this coverage. If you had to put 1/3 of all [your] money into one [real estate investment trust] and close your eyes for 30 years (but spend all the dividends), which would you be most comfortable with? O, MAA, PLD, ADC? Something else?
I'm tempted to think ADC. Joey is clearly not going to leave the helm. If ADC is a young O, then the future there looks good.
I'm asking because I'm looking for the ultimate REIT to 1) beat the market long-term, 2) round out my dividend payers (ENB, BNS, BTI, and a REIT), and 3) for ideally big dividends.
30 years not watching, 1/3 of your portfolio - which is your best bet?"
To that, I responded:
Great question… if it's okay with you, let me turn that one into an article. Stay tuned…"
I'm very, very happy he asked that. Because I cannot stress enough how you never want to put a third of your money into a single investment asset.
Ever.
For that matter, you never want to put a third of your money into a single sector. And I wouldn't even recommend most people put a third of their money into real estate investment trusts, or REITs, alone....
If I Had To Put A Third Of My Money Into A Single REIT