The REIT estimates its return on investment (ROI) at 3% for one-tenant towers, 13% for two-tenant towers and 24% for three-tenant towers.ĭemand for cell tower space is steadily rising as a result of growing market penetration for wireless devices, higher data usage per device and mobile data traffic growth.
(43,000), Brazil (23,000), Germany (14,700), Spain (11,400) and Mexico (10,100).Ĭell towers can be highly profitable because they can support multiple tenants on the same structure. The REIT own 219,000 communication sites worldwide, with large concentrations of cell towers in India (75,000 cell towers), the U.S.
These 12 names stand out because of generous dividends, low valuations, growth prospects, or in most cases, a combination of these and other attributes.Īmerican Tower ( AMT, $250.70) is one of the world's largest owners and operators of multi-tenant cell towers and related infrastructure. With that in mind, here are the 12 best REITs to buy for 2022. Inflation also increases the worth of REIT assets, thus making their portfolios more valuable. That's because of the structure of REIT leases, which allow frequent rent hikes, as well as rent increases linked to the consumer price index (CPI). Indeed, unlike most other businesses, real estate investment trusts typically benefit from inflation. "Combined with higher rent inflation in 2022, this supports REIT dividend growth and potential valuation appreciation." "As commercial activity and day-to-day life normalize, demand for commercial and residential real estate space will continue to recover," says State Street Global Advisors. economy, which is increasing occupancy rates and rents for real estate in the industrial, housing and shopping-center industries, among others.
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But there are other catalysts pointing specifically to strong REIT performance in 2022.Ī major growth driver is the strengthening U.S.