The implosion of the once invincible Meta Platforms is an eye-opening look into what may become a trend in the technology world. While the Amazon numbers looked strong on the surface, the company missed on revenue and the forward guidance was below expectations. Sure, the company beat earnings guidance, but almost $12 billion of that was the company’s revenue from their investment in electric car company Rivian, or nonoperating income.
The bottom line is the gravy train is coming to an end. The pandemic will end, and so will the punch bowl of liquidity from the Federal Reserve, which will start raising rates in March to try and control the ongoing spiraling inflation that is affecting almost every business and consumer.
So, what’s the answer for 2022? Hard assets like real estate probably will continue to do well, as should commodities like oil and gold. We screened our 24/7 Wall St. research database looking for real estate investment trusts (REITs) that paid big and, most importantly, dependable distributions. We found four that are rated Buy at top Wall Street firms, pay at least a 5% distribution and are in sectors that should do well this year. While all four of the stocks are rated Buy, it is important to remember that no single analyst report should be used as a sole basis for any buying or selling decision.
MGM Growth Properties
This company is a triple net lease REIT formed in April 2016 when it was spun out of MGM Resorts. MGM Growth Properties LLC (NYSE: MGP) is one of the leading publicly traded REITs engaged in the acquisition, ownership and leasing of large-scale destination entertainment and leisure resorts with diverse amenities including casino gaming, hotel, convention, dining, entertainment and retail offerings.
The company, together with its joint venture, currently owns a portfolio of properties, consisting of 12 premier destination resorts in Las Vegas and elsewhere across the United States; MGM Northfield Park in Northfield, Ohio; Empire Resort Casino in Yonkers, New York; as well as a retail and entertainment district, The Park, in Las Vegas.
The destination resorts collectively comprised approximately 27,400 hotel rooms, 1.4 million casino square footage, and 2.7 million convention square footage. As a growth-oriented public real estate entity, the company expects its relationship with MGM Resorts and other entertainment providers to position the company attractively for the acquisition of additional properties across the entertainment, hospitality and leisure industries.
Shareholders receive a 5.44% dividend. Deutsche Bank has a $43 price target on MGM Growth Properties stock. The consensus target is $41.33, and the shares closed on Friday at $38.32 apiece.
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