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Investors in REITs: This Diversified, Global REIT Can Provide Long-Term Monthly Income

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Real estate investment trusts (REIT) are some of the best ways for investors to make long-term income. True, you certainly want to find REITs that offer share growth as well. But having that passive income on hand means you can look forward to a specific amount of cash on a consistent basis, just like a paycheque.

What to look for

Now, of course, not all REITs are the same. If you want a strong REIT that’s going to be here a decade or more from now, you want to look at the industry it’s in. For example, right now, office spaces and residential properties are not doing so well. Furthermore, many are focused just on Canada. So, you want to find a company that offers diversified investments. That includes in terms of the types of properties they own, along with where they own them.

You’ll also want to look at the sector, and that means finding a company that won’t become obsolete or have a major shift in the decades to come. Some great options in the past have included energy infrastructure, but even this is changing. But if there’s one type of property that simply will never go away, it’s health care.

NorthWest REIT

That’s why I’m recommending NorthWest Healthcare Properties REIT (TSX:NWH.UN). This REIT is a great buy, as it checks all the boxes. NorthWest stock offers monthly passive income that continues to rise. It holds a diverse range of healthcare properties — everything from hospitals to office spaces and parking garages. And, of course, these are located all around the world from Australia to the United States.

The REIT continues to expand as well, which is why its passive income has remained stable, but hasn’t grown. And, frankly, I’m all for it at this point. NorthWest stock has been growing through acquisitions, and purchases of property that continue to expand its footprint. When it’s done, I’m fairly confident it will continue paying back investors in passive income now and in the next decade and beyond.

Create a substantial amount of passive income

So, how much passive income are we talking here? Even though NorthWest hasn’t risen its dividend, it still offers a yield of 6.14% as of writing. Shares trade at $13.15 as of writing, and it trades at just 7.43 times earnings. The business itself has a strong balance sheet, with its average lease at 14.1 years! That’s significant long-term income that both the company and investors can eat up — especially with occupancy at an astounding 97%.

Let’s say you were an investor then that had $10,000 to put towards this REIT. Right now, that would create passive income of $615 per year! That comes out to about $51 per month. Have more to invest? A $50,000 investment would bring in an astounding $3,077, or $256 per month! Meanwhile, shares have grown 150% since coming on the market in 2015. That’s a compound annual growth rate of 13.43%.

Bottom line

Investors seeking out REIT stocks should definitely be careful what they choose right now. NorthWest stock offers you significant long-term income from diversified sources all around the world. You could bring in thousands each year and be happy holding it for decades. And you can get the cash handed out each and every month.

The post REIT Investors: Create Long-Term Monthly Income With This Diversified, Global REIT appeared first on The Motley Fool Canada.

Should You Invest $1,000 In NorthWest Healthcare Properties?

Before you consider NorthWest Healthcare Properties, you’ll want to hear this.

Our market-beating analyst team just revealed what they believe are the 5 best stocks for investors to buy in August 2022 … and NorthWest Healthcare Properties wasn’t on the list.

The online investing service they’ve run for nearly a decade, Motley Fool Stock Advisor Canada, is beating the TSX by 27 percentage points. And right now, they think there are 5 stocks that are better buys.

See the 5 Stocks
* Returns as of 8/8/22

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More reading

  • 3 Simple TSX Stocks to Buy With $100 Right Now
  • Why REITs Are a No-Brainer Addition to Your Portfolio
  • Passive-Income Power: How to Generate $100/Week TAX FREE for the Rest of 2022
  • My 3 Favourite TSX Dividend Stocks Right Now
  • 3 Simple TSX Stocks to Buy With $25 Right Now

Fool contributor Amy Legate-Wolfe has positions in NORTHWEST HEALTHCARE PPTYS REIT UNITS. The Motley Fool recommends NORTHWEST HEALTHCARE PPTYS REIT UNITS.

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By: Amy Legate-Wolfe
Title: REIT Investors: Create Long-Term Monthly Income With This Diversified, Global REIT
Sourced From: www.fool.ca/2022/08/23/reit-investors-create-long-term-monthly-income-with-this-diversified-global-reit/
Published Date: Tue, 23 Aug 2022 17:00:00 +0000

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