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Florida REITs: Top Picks for the Sunshine State’s Real Estate Market

Florida, the Sunshine State, is well-known for its thriving real estate market. One way to capitalize on this growth is through Real Estate Investment Trusts (REITs), which allow investors to enjoy the benefits of owning real estate without the hassle of direct property management. In this post, we will explore the best Florida REITs that provide exposure to diverse sectors within the state’s real estate market.

Florida REITs Top Picks for the Sunshine State’s Real Estate Market

ARMOUR Residential REIT, Inc. (ARR)

Market Capitalization: $1.002 billion

Dividend Yield (TTM): 22.31%

Industry: REIT – Mortgage

Headquarters: Vero Beach, Florida

ARMOUR Residential REIT, Inc. (ARR) is a Florida REIT that focuses on investing in residential mortgage-backed securities (RMBS) in the United States. These securities are issued or backed by government-sponsored enterprises, such as Fannie Mae, Freddie Mac, or Ginnie Mae, providing an added layer of protection for investors.

The company’s investment portfolio consists of a diverse mix of mortgage-backed securities, which includes fixed-rate agency RMBS, adjustable-rate mortgage securities, and multifamily mortgage-backed securities. The majority of the company’s investments are in long-term, fixed-rate agency RMBS, which are known for their stability.

Chatham Lodging Trust (CLDT)

Market Capitalization: $505.62 million

Dividend Yield (TTM): 1.35%

Industry: REIT – Hotel & Motel

Headquarters: Palm Beach, Florida

Chatham Lodging Trust (CLDT) is a Florida REIT specializing in the upscale extended-stay hotel market. The company operates in several states across the U.S., including California, New York, Texas, Florida, Minnesota, Massachusetts, and Pennsylvania, among others.

CLDT generates revenue through room rentals, food and beverage sales, and other ancillary services. Most of the company’s total revenue comes from room rentals, reflecting the primary focus of the business. CLDT’s extended-stay hotels operate under well-known brands such as Hilton, Marriott, and Hyatt, ensuring high-quality accommodations and services for guests.

CTO Realty Growth Inc (CTO)

Market Capitalization: $384.30 million

Dividend Yield (TTM): 9.06%

Industry: REIT – Diversified

Headquarters: Daytona Beach, Florida

CTO Realty Growth Inc. (CTO) focuses on owning and managing income-producing properties across various markets in the United States. The company boasts a diverse portfolio of assets totaling around 2.7 million square feet, catering to multiple sectors and geographic locations.

This Florida REIT’s portfolio comprises several key components, including the Income Properties Portfolio, management services, and Commercial Loans and Investments. Through its Income Properties Portfolio, CTO owns a range of commercial properties that generate steady rental income. This helps to ensure consistent revenue streams and a strong foundation for long-term growth.

Additionally, CTO provides management services for property owners, offering expertise and resources to ensure the efficient operation of their assets. The company’s involvement in Commercial loans and Investments further diversifies its revenue sources, contributing to its financial stability.

National Retail Properties, Inc. (NNN)

Market Capitalization: $7.836 billion

Dividend Yield (TTM): 3.82%

Industry: REIT – Retail

Headquarters: Orlando, Florida

National Retail Properties Inc. (NNN) is a Florida REIT that specializes in investing in and developing properties. The company’s primary revenue source is leasing its properties to tenants from various sectors, such as convenience stores, automotive services, fitness centers, theaters, restaurants, and banks. 

Convenience stores and restaurants form the largest share of the company’s total revenue, followed by automotive services, entertainment venues, and other types of tenants. This tenant mix enables NNN to maintain a stable and consistent income stream, even in fluctuating market conditions. 

Many of NNN’s assets are in the South and Southeast U.S., especially Florida. This makes it a genuine Florida REIT, with its headquarters and a large part of its holdings in the state.

Rayonier Inc (RYN)

Market Capitalization: $4.748 billion

Dividend Yield (TTM): 3.54%

Industry: REIT – Specialty

Headquarters: Yulee, Florida

Rayonier Inc. (RYN) is a Florida REIT that specializes in owning and managing vast tracts of timberland. With over 2 million acres under its management, RYN ranks among the largest private landowners in North America. The company also has a presence in New Zealand, further expanding its global reach.

RYN benefits from a unique tax structure, exempting it from federal income taxes on earnings generated through its timber harvesting activities. This allows the company to maintain a competitive edge while maximizing returns for its investors. 

RYN’s extensive timberland holdings provide a sustainable and renewable resource for a variety of industries, including construction, paper, and packaging. By managing these resources responsibly, RYN helps to ensure the long-term viability of the timber industry and contributes to economic growth and environmental sustainability.

Regency Centers Corp (REG)

Market Capitalization: $10.40 billion

Dividend Yield (TTM): 4.20%

Industry: REIT – Retail

Headquarters: Jacksonville, Florida

Regency Centers Corp. (REG) stands out as one of the largest retail REITs, primarily focusing on shopping centers. The company’s extensive portfolio encompasses interests in 404 properties, which together account for almost 55 million square feet of retail space. This wide-ranging collection of assets is strategically diversified across 22 regional offices. No single market accounts for more than 14% of the company’s total net operating income.

A key feature of REG’s retail portfolio is its emphasis on grocery-anchored centers. In fact, 80% of the properties in its portfolio have a grocery anchor, and grocery stores contribute to 20% of the annual base rent. This focus on essential services helps REG maintain stability and resilience in economic fluctuations.

SBA Communications Corp (SBAC)

Market Capitalization: $27.75 billion

Dividend Yield (TTM): 1.16%

Industry: REIT – Specialty

Headquarters: Boca Raton, Florida

SBA Communications Corp. (SBAC) is a notable Florida REIT specializing in cell towers. It owns and operates nearly 40,000 cell towers across North America, South America, and Africa. The company leases space on its towers to wireless service providers, enabling them to install equipment and support their wireless networks efficiently. The company has a concentrated customer base, with the majority of its revenue in each market coming from the top mobile carriers.

In the United States, SBAC owns over 17,000 towers, contributing to approximately three-quarters of the company’s total revenue in 2022. Internationally, Brazil represents SBAC’s largest market, with the operation of around 10,000 towers.

As a REIT, SBAC benefits from a unique tax structure. This enhances its appeal to investors seeking exposure to the growing telecommunications industry.

Xenia Hotels & Resorts Inc (XHR)

Market Capitalization: $1.417 billion

Dividend Yield (TTM): 2.36%

Industry: REIT – Hotel & Motel

Headquarters: Orlando, Florida

Xenia Hotels & Resorts Inc. (XHR) is a Florida REIT specializing in premium full-service, lifestyle, and upscale urban hotels throughout the United States. The company focuses on acquiring and managing hotels in the upscale, upper upscale, and luxury segments.

XHR is often affiliated with well-known brands, ensuring a high standard of quality for its guests. For example, many of XHR’s hotels are operated by Marriott, Hilton, Hyatt, Starwood, Kimpton, Aston, Fairmont, and Loews. This strategic partnership with leading hotel operators helps XHR maintain a strong reputation and attract a wide range of clientele.

XHR’s properties are strategically located across various regions in the U.S., including the South Atlantic, West South Central, Pacific, Mountain, and other areas. This geographic diversification allows the company to cater to different markets and minimize risks associated with regional economic fluctuations. 

The company’s revenue streams are primarily from room rentals, food and beverage sales, and other related services. Room rentals account for the largest share of the firm’s total revenue. XHR caters to diverse customer groups, including transient business travelers, group business events, and contract business clients.

Best Florida REITs - Key Takeaways

REIT Market Cap Dividend Yield (TTM) Industry
ARMOUR Residential REIT, Inc. (ARR)
$1.002 billion
22.31%
Mortgage
Chatham Lodging Trust (CLDT)
$505.62 million
1.35%
Hotel & Motel
CTO Realty Growth Inc (CTO)
$384.30 million
9.06%
Diversified
National Retail Properties, Inc. (NNN)
$7.836 billion
3.82%
Retail
Rayonier Inc (RYN)
$4.748 billion
3.54%
Specialty
Regency Centers Corp (REG)
$10.40 billion
4.20%
Retail
SBA Communications Corp (SBAC)
$27.75 billion
1.16%
Specialty
Xenia Hotels & Resorts Inc (XHR)
$1.417 billion
2.36%
Hotel & Motel

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