Sell Alert: 2 REITs Getting Risky

Sell alert: I would sell these 2 REITs because they are getting risky at today's stock prices. These overvalued REIT stocks are priced at high valuations relative to other dividend stocks and offer limited upside potential. These 2 REITs are not among the best REITs to buy today and so I wouldn't include them in my dividend portfolio. They are Extra Space Storage (EXR) and Tanger Factory Outlet (SKT). Extra Space Storage REIT is getting very big, suffering similar issues as Realty Income (O Stock), and Tanger Factory REIT is simply overpriced relative to its peer, Simon Property Group (SPG).

In short, ExtraSpace Storage (EXR REIT) and Tanger REIT (SKT REIT) are popular dividend growth stocks that I wouldn't buy in 2023. Extra Space REIT is overpriced relative to most REITs and Tanger REIT is a lot more expensive than SPG REIT.

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Image sources: EXR, O; SPG; SKT; LSI, NAREIT, YCHARTS, EPRA, Canva

Important Disclaimer: Leonberg Capital holds positions in Tricon and Whitestone REIT. This video is impersonal and does not provide individualized advice or recommendations for any specific person. Viewers/readers should not make any investment decision without conducting their own due diligence and consulting their financial advisor about their specific situation. This video is for entertainment purposes only and you are responsible for your own investment decisions. The information is obtained from sources believed to be reliable, but its accuracy cannot be guaranteed. The opinions expressed are those of the publisher and are subject to change without notice. This YouTube channel is managed by Leonberg Research OÜ, a subsidiary of Leonberg Capital OÜ.

#reits #dividend #passiveincome