Positions I’m Watching: Cell Phone Tower REITs

By: Stacey Nickens

Real estate investment trusts, or REITs, have certainly taken a hit during the COVID-19 crisis. REITs own income-producing real estate; however, with many companies going out of business or being unable to make rent, some REITs may not make for the best investment right now. Cell phone tower REITs are a different story. For example, American Tower Corporation is a rapidly-growing REIT. Their dividends and returns have been strong during the past five years as their revenue continues to grow. People continue to increase their data usage, and this will increasingly become the case with the rollout of 5G. 5G travels less distance than 4G, requiring more cell phone towers. Knowing that, cell phone real estate holders will likely bring in increasing amounts of revenue moving forward. Besides American Tower Corporation, I am also keeping my eye on Crown Castle International (CCI). CCI has also experienced rapid growth as data usage has gone up during the COVID crisis, and while past growth is not necessarily indicative of future growth, I will continue to watch to see what happens.

Curious about other positions I’m watching? Read more here. 

Disclosures: Past performance is not a guarantee or a reliable indicator of future performance. All securities carry a unique set of risks subject to a variety of factors. There is no guarantee that these investment strategies will work under all market conditions or that they are are suitable for all investors. This material has been distributed solely for informational purposes and should not be considered as individual investment advice or recommendation. Individuals should consult their investment professional prior to making an investment decision.