Medical Properties Trust
Medical Properties Trust (NYSE: MPW) is a Birmingham, Alabama-based REIT that bills itself as one of the world's largest owners of hospitals -- and second-largest in the United States -- with 431 facilities and about 43,000 licensed beds in nine countries on four continents.
Medical Properties Trust lays claim to being the first and only company of its kind to focus exclusively on hospital facilities, and within that has a diverse portfolio, with 57% in the United States, 23% in the United Kingdom, and no more than 6% in any other single country. Its single-largest property represents only 3% of its portfolio, the net lease operator says, and its average weighted lease is 15.7 years.
MPT most recently raised its quarterly dividend by 4% to $0.28 per share and has raised the payout each of the past eight years. MPT stock closed on March 12 at $21.94 per share -- only 3.56% off its 52-week high of $22.75 and giving it an annual dividend yield of 5.1%.
National Retail Properties
National Retail Properties (NYSE: NNN) is an Orlando, Florida-based owner of more than 3,100 single-tenant stores in 48 states leased to more than 400 retailers in 37 lines of trade. NNN has increased its annual dividend every year for three decades and boasts a 25-year average annual total return of 12%.
NNN's largest single tenant category is convenience stores at 18.2%, followed by restaurants and auto service at 10.5% and 10.3%, respectively. Its largest single tenant is 7-Eleven, with 140 of them accounting for 5.1% of the total portfolio rent. The company's occupancy total was 98.5% at year's end, with the weighted average remaining lease term at 10.7 years.
When NNN increased its yearly payout by 2.0% to $2.07 recently, that marked the 31st consecutive year of annual dividend increases, what it says is the third-longest record of consecutive annual dividend increases of all public REITs and 99% of all public companies.
NNN stock closed on March 12 at $44.20 per share, 11.23% off its 52-week high of $49.79 and giving it an annual dividend yield of 4.71%.
UMH Properties (NYSE: UMH) is a Freehold, New Jersey-based owner and operator of 126 manufactured home communities, with approximately 23,700 developed home sites in 10 states. UMH also has 1,700 acres for developing new sites.
UMH is in a comfortable niche, providing affordable housing options that can serve a lot of people in a lot of circumstances in a lot of markets, especially as home prices escalate. Indeed, 2020 was a good year, with the company reporting an 11% growth in rental income and a 13% increase in manufactured home sales, as well as growing rental home occupancy to 94.6%.
The company paid its first dividends in 1990 and just raised its dividend to $0.19 a share after paying $0.18 a share every quarter since the middle of 2008. That's right, 13 years of the same dividend, through the Great Recession and now the pandemic.
UMH stock closed on March 12 at $19.28 per share -- only 1.18% off its 52-week high of $19.51 and giving it an annual dividend yield of 3.94%.
The Millionacres bottom line
Medical Properties Trust, National Retail Properties, and UMH Properties have solid records of steady payouts based on sustainable business models that lend confidence to this performance continuing for years to come.
While there are other REITs that yield more, these three are again trading at or near pre-pandemic levels, and they're in somewhat resistant niches if interest rates start heading north because of inflation.
All in all, they present solid consideration for income-producing REITs to buy this spring and hold through many seasons to come.