The Zacks Analyst Blog Highlights: Nike, Apple, Spirit Realty Capital, Innovative Industrial Properties And Americold Realty Trust

For Immediate Release

Chicago, IL – March 20, 2020 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Nike (NYSE:NKE) , Apple (NASDAQ:AAPL) , Spirit Realty Capital, Inc. (NYSE:SRC) , Innovative Industrial Properties, Inc. (NYSE:IIPR) and Americold Realty Trust (NYSE:COLD) .

Here are highlights from Thursday’s Analyst Blog:

3 High-Yielding REITs to Buy to Combat Volatility

The coronavirus, which continues to spread around the world and in the U.S., already ended the 11-year bull market. Selling and volatility look poised to remain amid increasing uncertainty, even with the Dow, the S&P 500, and the Nasdaq all down roughly 30% from their mid-February highs.

With that said, some investors might want to hunt for stocks to buy, or at least add to watchlists. But amid the uncertainty that has seen Nike, Apple, and other giants close their stores, and the travel and hospitality industries come to a halt, investors need to be more selective.

Today, we are looking to add income, with the yield on the 10-year U.S. Treasury at 1.07%. And Real Estate Investment Trusts are a solid place to start. REITs are companies that own, operate, or finance real estate properties that produce income, such as apartment complexes or retail locations.

We should note that instead of earnings, REITs report funds from operations or FFO, but investors can view them as essentially the same for our purposes. Plus, one distinct advantage is that REITs must pay at least 90% of their taxable income in dividends to shareholders.

Now, let’s dive into three high-yield REITs that investors might want to buy to help add income amid the coronavirus market downturn…

Spirit Realty Capital, Inc.

Spirit Realty is a net lease REIT that invests mostly “in high-quality, operationally essential retail real estate, subject to long-term, net leases.” SRC’s clients include Walgreens, CVS and other retail, distribution, and service-oriented firms, many of which look poised to remain running during the coronavirus spread that has seen many bars and restaurants close. Overall, the firm’s portfolio featured 1,752 properties and 43 properties securing mortgage loans, as of the end of 2019.

Spirit Realty topped our fourth quarter fiscal 2019 FFO and sales estimates at the end of February. But, as many might have guessed, the stock has tumbled over the last month, down 60%. The stock was trading at $54 a share a month ago and now rests at roughly $22 a share. This has helped make its dividend yield all the more attractive.

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SRC currently pays an annualized dividend of $2.50 a share, for a 11.50% yield, which blows away its industry’s 3.66% average. Looking ahead, our Zacks estimates call for Spirit Realty’s revenue to jump 15.5% and 10%, respectively in fiscal 2020 and 2021. Plus, its positive earnings estimate revision activity helps it earn Zacks Rank #2 (Buy), alongside its “A” grade for Momentum in our Style Scores system. SRC is also trading at a solid discount compared to its industry.

Innovative Industrial Properties, Inc.

Innovative Industrial Properties is a REIT that invests exclusively in property assets that are used for the cultivation and production of cannabis products. The basic idea is that IIPR purchases properties from growers or producers. The company then makes improvements to maximize utility to the operators and execute a leaseback agreement. The producers then continue to operate their businesses while paying rent to IIPR. David Borun, who runs our Zacks Zacks Investment Research

Written By: Zacks Investment Research