OLP - There Are Better Opportunities Than One Liberty Properties
2024-07-05 04:09:16 ET
Summary
- One Liberty Properties is a diversified REIT with a heavy focus on industrial and retail/service-oriented properties.
- Specialized REITs tend to outperform diversified REITs, but each diversification strategy should be evaluated individually.
- The dividend may be tempting. However, OLP has recently delivered a modest AFFO per share growth, no DPS growth, and is accompanied by a high AFFO payout ratio.
- There are better alternatives within industrial, retail/service-oriented, and diversified REITs.
Investment Thesis
One Liberty Properties ( OLP ) has some strong points such as:
- solid business metrics
- high dividend yield
- the ongoing shift towards a more industrial-oriented portfolio