The 3 Most Undervalued REITs to Buy in September 2023

Stocks to buy

A Real Estate Investment Trust (REIT) is a must for any investor’s portfolio.

They provide exposure to real estate without the upfront cost of actually purchasing real estate. Investors can enjoy dividend yields. REITs are required to give 90% of taxable income back to investors in the form of dividend payments.

The companies below offer fair valuations, possible future growth, and little fluctuations in their underlaying share prices. This makes them attractive options for investors who are searching for safe companies that yield decent dividends.

EPR Properties (EPR)

a woman smiling while using a slot machine in a casino. representing gambling stocks

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EPR Properties (NYSE:EPR) own 363 different properties in the U.S. and Canada. They manage and provide lease agreements with businesses of recreational and leisure activities. These include theaters, amusement parks, and casinos as well as some private schools and childhood learnings centers.

Over the last year, EPR’s stock price remains fairly stagnant, only decreasing by 4%. In June, the company announced it had reached an agreement with Regal Cinema and their parent company CineWorld. Additionally, they will restructure their triple net lease agreement for 41 of their 57 properties owned by EPR Properties. Also, it reduces EPR Properties’ exposure to the movie theatre chain with plans to sell 11 Regal Cinema properties. This deal will help Regal to reduce overall leverage and supply them with a more manageable financial situation.

The company reported Q2 2023 with a total revenue increase of 8% and net income drop by 67%. EPR Properties has $6.7 billion in investments within experiential properties and $500 million and education properties.

VICI Properties (VICI)

Person holding mobile phone with logo of American real estate company Vici Properties Inc. on screen in front of web page. VICI stock.

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VICI Properties (NYSE:VICI) owns a large portion of the gaming and leisure properties along the Las Vegas Strip. These include Caesar’s Palace, Venetian Resort, and the MGM Grand. Along with owning additional U.S. and Canadian casino and resort properties, they operate four championship golf courses in Mississippi, Nevada, and Indiana.

Over the past year, their share price fell slightly by 8%. On September 7, they announced they’d be raising their quarterly dividend to $0.42 per share payable September 30. Their Q2 earnings release showed a revenue increase of 36% and net income of $702 million. VICI Properties also showed multiple property acquisitions from Century Casinos (NASDAQ:CNTY) and an expanding partnership with Canyon Ranch.

Since VICI’s share price remains stagnant, and it has a fair valuation, investors looking for a strong long-term play should consider buying this stock now.

Omega Healthcare Investors (OHI)

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Omega Healthcare Investors (NYSE:OHI) invests in nursing and assisted living facilities with a portfolio of 893 properties throughout the U.S. and U.K.

Notably, Omega Healthcare’s share price hasn’t changed over the past year. They stated in their Q2 2023 earnings report that their total revenue increased by 2%.  Further, their earnings per share dropped by 34% year over year (YOY). Real estate acquisitions totaled $129 million, and they also sold 10 of their facilities for a grand gain of $12 million.

Also, OHI offers an annual dividend yield of just over 8%, with their most recent quarterly dividend being $0.67 per share. With the aging population needing access to healthcare facilities, Omega Healthcare is in an industry that will be a consistent need. In short, this stock is a definite buy.

As of this writing, Noah Bolton did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines

Noah has about a year of freelance writing experience. He’s worked with Investopedia dealing with
topics such as the stock market and financial news.