Warren Buffett's Favorite REIT

Warren Buffett is not a big fan of real estate investing but he has invested in many REITs through Berkshire Hathaway in the past. This includes Tanger Factory Outlets (SKT), General Growth Properties ((now Brookfield (BAM)), Vornado (VNO), Seritage Growth Properties (SRG), and STORE Capital (STOR), which was recently bought out by Blue Owl Capital (OWL). Today, we think that his favorite REIT would be Essential Properties Realty Trust (EPRT). You can access my entire REIT Portfolio by taking a 2-week free trial to my REIT newsletter, High Yield Landlord: https://seekingalpha.com/checkout?service_id=mp_1268

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EPRT is very similar to STORE Capital. Unlike Realty Income (O), they focus on net lease properties that are occupied by middle-market companies. It was even created by some former executives of STORE Capital. But it has three key improvements. It focuses on smaller properties, more generic layouts, and a narrower range of sub-sectors to mitigate risks. Since its IPO, it has performed even better than STORE Capital and we think that this strong outperformance is likely to continue. If STORE used to be Warren Buffett's favorite REIT, then EPRT should be his favorite today.

Image sources: NAREIT, YCHARTS, EPRA, EPRT, STOR

Important Disclaimer: Leonberg Capital holds positions in the 3 REITs discussed in this video. 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.

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