CNBC’s Jim Cramer on Tuesday presented a list of REITs that equity investors should consider buying to take advantage of rising rental prices.
“Since higher rents are only good news for landlords, why not just buy a landlord, or at least a publicly traded piece of landlord property? Don’t just be a renter, but be a tenant through one of the apartment REITs,” themad money‘ said the host.
He later added, “With rents soaring across America, and with the uncertain housing crisis due to mortgage rates, you might want to own one of the best apartment REITs.”
Average one-bedroom prices in March were up about 12% year-over-year, while two-bedroom prices were up about 14% year-over-year, according to Zamber National Rental Report.
Cramer started with 17 names in the FTSE NAREIT Apartment Equity Index before narrowing the list to the top 10 real estate investment trusts. Then he evaluated each name by comparing their numbers for each category:
- Growth in net operating income for the same store
- Expected revenue growth
- Funds expected from operations
- Dividend returns
Using these criteria, Cramer has come up with four winners that investors should watch out for.
Here are the top four real estate investment funds:
open an account now For the CNBC Investing Club to keep track of Jim Cramer’s every move in the market.
Questions for Kramer?
Call Cramer: 1-800-743-CNBC
Do you want to dive deep into Kramer’s world? Hit him!
Mad Money on Twitter – Jim Kramer Twitter – Facebook – Instagram
Questions, comments and suggestions for “Mad Money”? [email protected]
“Reader. Infuriatingly humble coffee enthusiast. Future teen idol. Tv nerd. Explorer. Organizer. Twitter aficionado. Evil music fanatic.”