In every major sell-off, the proverbial baby is almost always thrown out with the bathwater, because terrified investors think that everything is going to zero and will stay there. While many of the stocks that have been hammered during one of the worst five months in the stock market in years deserve what they got, others that have been hit hard are offering investors who were savvy enough to take profits when the sun was shining and raise some cash some incredible entry points.

Real estate investment trusts (REITs) tend to hold up well during periods of inflation, and they also can do well in a rising rate environment, provided rates do not explode higher. The Federal Reserve is targeting a 3.25% to 3.50% end game for rate increases, which is far below the 5% federal funds we saw in 2007.

We screened our 24/7 Wall St. REIT universe looking for beaten-down leaders that are paying generous and dependable distributions and also are rated Buy at top Wall Street firms. We found seven of the top names in the sector that all look like great ideas for weary investors looking for a safe space. It is important to remember that no single analyst report should be used as a sole basis for any buying or selling decision.

Getty Realty

Despite climate change concerns, the reality is people still need gasoline for their cars, trucks and vans, and gas stations still provide that basic need. Getty Realty Corp. (NYSE: GTY) is a publicly traded, net lease REIT specializing in the acquisition, financing and development of convenience, automotive and other single-tenant retail real estate. As of March 31, 2022, the company’s portfolio included 1,014 properties in 38 states and the District of Columbia.

With big footprints in both Texas and California, the company serves some of the most populated regions of the country, and it posted strong first-quarter results with funds from operations surpassing Wall Street expectations.

Shareholders receive a 6.11% distribution. JMP Securities has a $32 target price on the shares. The consensus target is $33.75, and the stock closed on Monday at $26.86.

Gladstone Commercial

This stock has been hit hard as interest rates charged higher and is offering the best entry point since last November. Gladstone Commercial Corp. (NASDAQ: GOOD) is focused on acquiring, owning and operating net leased industrial and office properties across the United States.

As of June 30, 2021, Gladstone owns a diversified portfolio of 121 office and industrial properties located in 27 states and leased to 106 tenants. The company has grown the portfolio in a consistent, disciplined manner at a rate of 18% per year since the IPO in 2003. They match long-term leased properties with long-term debt to lock in the spread to create a durable, stable cash flow stream to fund monthly distributions to shareholders. Current occupancy stands at 96.5% and occupancy has never dipped below 95.0% since its IPO in 2003.

Most importantly for investors, Gladstone has a track record of success, as exhibited by a history of strong distribution yields, consistent occupancy greater than 95.0%, and 10+ years of paying continuous monthly cash distributions.

Gladstone Commercial stock investors receive a 7.79% distribution. The B. Riley Securities price target is $23, and the consensus target is $25. The last trade for Monday was reported at $19.33.

Many businesses turn to this company to store data or documents. Iron Mountain Inc. (NYSE: IRM), founded in 1951, is the global leader in secure storage and information management services. Trusted by more than 225,000 organizations around the world, and with a real estate network of more than 90 million square feet across approximately 1,450 facilities in approximately 50 countries, Iron Mountain stores and protects billions of valued assets, including critical business information, highly sensitive data and cultural and historical artifacts.

Its solutions include secure records storage, information management, digital transformation and secure destruction, as well as data centers, cloud services and art storage and logistics. Iron Mountain helps customers lower cost and risk, comply with regulations, recover from disaster and enable a more digital way of working.

Shareholders receive a 4.85% dividend. Stifel recently raised its $52 price target to $62. That compares with a $53 consensus target for Iron Mountain stock and Monday’s closing print of $50.98.

Medical Properties Trust

This stock may offer investors the best value at current price levels. Medical Properties Trust Inc. (NYSE: MPW) acquires, develops and invests in health care facilities and leases health care facilities to health care operating companies and providers. The company also provides mortgage loans to health care operators, as well as working capital and other term loans to its tenants/borrowers.

With a growing portfolio and a versatile business model, the company continues to rank high across Wall Street. The analysts noted that the company’s acute care hospitals rent coverage increased nicely and the company attributed the increase to better cost controls and higher patient admissions.

Shareholders receive a 6.39% distribution. The $22 RBC Capital Markets price target is lower than the $24.07 consensus figure. Medical Properties Trust stock closed trading Monday at $18.15.

Simon Property

Shares of this leading company have been pounded and are offering the best entry point since last year. Simon Property Group Inc. (NYSE: SPG) is a very strong company for investors looking to play the industry. It invests in real estate markets across the globe. It engages in investment, ownership, management and development of properties. The company primarily invests in regional malls, premium outlets, mills and community/lifestyle centers to create its portfolio.

Through its subsidiary partnership, Simon Property owns or has an interest in about 230 properties in the United States and Asia. The company also has a 28.9% interest in Klepierre, a European real estate investment trust with over 260 shopping centers in 13 countries.

Simon Property Group stock comes with a 6.31% distribution. Deutsche Bank has set its price target at $173. The consensus target is $163.82, and shares ended Monday trading at $107.77.

This is the top pick across Wall Street in the net lease group, and it is an ideal pick for investors who are more conservative and looking for gaming exposure. VICI Properties Inc. (NYSE: VICI) is a triple net lease REIT that was spun out of Caesars Entertainment post-bankruptcy.

The company has 23 mixed-use gaming, lodging and entertainment properties in its portfolio, and a subsidiary that owns four championship golf courses. VICI also owns roughly 34 acres of undeveloped land in Las Vegas, which it leases to Caesars.

Much of the focus has been on VICI’s recent deal to acquire the real estate of the Venetian Resort in Las Vegas, with Apollo as a new tenant. Looking ahead, many on Wall Street are very positive on VICI’s embedded growth pipeline with Caesars Entertainment, including a put/call on the Centaur properties in Indiana (starting in January) and a right of first refusal on a strip asset sale for Caesars, which could occur soon after a full earnings before interest, taxes, depreciation, amortization and restructuring or rent costs recovery.

In addition, the company recently closed a $17.2 billion deal to buy out rival gaming REIT MGM Growth Properties, which owns the real estate of 15 casinos and resorts in eight states, including seven properties on the Las Vegas Strip. All of MGM Growth’s properties are operated by MGM Resorts International.

Investors receive a 4.94% distribution. Goldman Sachs recently lifted its target price on VICI Properties from $35 to $39. The consensus target is $35.27. Monday’s closing share price was $29.17.

W.P. Carey

This is a large net lease REIT with an incredible distribution for income investors. W.P. Carey Inc. (NYSE: WPC) ranks among the largest net lease REITs, with an enterprise value of approximately $18 billion and a diversified portfolio of operationally critical commercial real estate that includes 1,215 net lease properties covering approximately 142 million square feet, as of September 30, 2020.

For nearly five decades, the company has invested in high-quality single-tenant industrial, warehouse, office and retail properties subject to long-term leases with built-in rent escalators. Its portfolio is located primarily in the United States and northern and western Europe, and it is well diversified by tenant, property type, geographic location and tenant industry.

Investors receive a 5.19% distribution. The price target on W.P. Carey stock at Raymond James is $90. The consensus target is $88.33., and shares closed Monday’s trading at $81.49.

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Most of these top companies have been hit by the move higher in interest rates and the large-scale selling across Wall Street in every sector. These top stocks are all leaders in their specific REIT subsectors and offer multiple ways for investors to get steady growth and be paid substantial dependable income. Lastly, they have all been hit reasonably hard and are offering the best entry points in well over a year. It is important to remember that REIT distributions can contain return of principal.

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