Massachusetts, known for its rich history and vibrant economy, offers a unique landscape for investors seeking growth and stability. Amidst its bustling cities and quaint towns, the real estate market attracts discerning investors from far and wide. Today, following our exploration of Massachusetts REITs, we will uncover how some of them stand as exceptional assets in the Bay State.
Key Takeaways – Best Massachusetts REITs Chart
| REIT | Market Cap | Dividend Yield (TTM) | Industry |
|---|---|---|---|
|
$97.63 Billion |
3.04% |
Specialty |
|
|
$19.63 Billion |
3.78% |
Specialty |
|
|
$10.98 Billion |
5.61% |
Office |
|
|
$7.00 Billion |
3.82% |
Industrial |
|
|
$1.35 Billion |
9.78% |
Hotel & Motel |
|
|
$1.04 Billion |
3.89% |
Industrial |
|
|
$203.36 Million |
10.26% |
Mortgage |
American Tower Corporation (AMT)
- Market Capitalization: $97.63 Billion
- Dividend Yield (TTM): 3.04%
- Industry: REIT – Specialty
- Headquarters: Boston, Massachusetts
American Tower Corporation (AMT) is a REIT specializing in communication real estate. Founded in 1995 as a division of American Radio Systems, it became independent in 1998 following a merger with CBS Corporation. The company is headquartered in Boston, Massachusetts, and is recognized as one of the largest global REITs.
AMT focuses on owning, operating, and developing multi-tenant communication real estate. Its portfolio boasts nearly 225,000 communication sites, including a vast network of cell towers and U.S. data center facilities. These assets have been instrumental in repurposing former AT&T Long Lines telephone relay towers into cell towers, expanding their utility in the communications sector.
The company’s expansion has been both domestic and international. In 2005, it acquired SpectraSite Communications, adding over 22,000 communication sites to its portfolio. Further international growth occurred between 2007 and 2012, with operations established in India, Peru, Chile, Colombia, South Africa, Ghana, and Uganda. In 2013, AMT acquired Global Tower Partners, adding significant sites to its U.S. portfolio and expanding into Costa Rica and Panama. Recent acquisitions include the European and Latin American tower divisions of Telxius in 2021 for $9.6 billion and CoreSite in the same year for $10.4 billion, significantly bolstering its position in the 5G sector.
The company competes with other major players in the mobile and telecommunications sector, such as Crown Castle, Liberty Broadband, and SBA Communications.
Iron Mountain (IRM)
- Market Capitalization: $19.63 Billion
- Dividend Yield (TTM): 3.78%
- Industry: REIT – Specialty
- Headquarters: Boston, Massachusetts
Iron Mountain Incorporated (IRM) is a specialty REIT known for its global leadership in information management, innovative storage, data center infrastructure, and asset lifecycle management. Established in 1951 and headquartered in Boston, Massachusetts, it’s a trusted service provider for over 225,000 customers worldwide, including about 95% of the Fortune 1000 companies.
The company’s journey began when it was founded by Herman Knaust, initially focusing on document storage in an old iron ore mine. This unique start is the source of its name, Iron Mountain. It expanded its services beyond New York in the 1980s and continued to grow into a significant player in information storage and management. Iron Mountain went public in 1996 and transitioned to a REIT in 2014.
Under the leadership of CEO William L. Meaney, who took the helm in 2013, Iron Mountain has significantly expanded its global presence. The company now operates across 52 countries, with facilities at 1,400 sites. Meaney’s vision and international experience have been pivotal in transforming Iron Mountain into a truly global enterprise.
Boston Properties, Inc. (BXP)
- Market Capitalization: $10.98 Billion
- Dividend Yield (TTM): 5.61%
- Industry: REIT – Office
- Headquarters: Boston, Massachusetts
Boston Properties, Inc. (BXP) is one of the premier REITs in the United States. Specializing in office properties, it is the largest publicly traded developer, owner, and manager in this sector. Established in 1997 with its IPO, BXP has achieved significant growth and is now a member of the S&P 500.
The company’s operations are concentrated in six key U.S. cities: Boston, New York, Washington D.C., Los Angeles, San Francisco, and Seattle. As of early 2024, Boston Properties’ portfolio encompasses 54.5 million square feet across 192 properties. This includes a mix of office, residential, and retail properties, offering a diversified asset base.
A key aspect of Boston Properties’ portfolio is its focus on premier workplaces, which has led to a strong presence in some of the most dynamic markets in the country. Its properties are sought after by high-profile tenants, adding to the stability and prestige of its real estate portfolio.
Boston Properties has also been proactive in adapting to market trends. For instance, recognizing the growing importance of life science companies, it has begun expanding its offerings to this sector. This includes fully leasing a six-story, 271,000-square-foot building in Boston to Biogen and a 566,000-square-foot building preleased to AstraZeneca, set for occupancy in 2026. Such strategic moves demonstrate the company’s agility in responding to market demands and its commitment to growth and diversification.
Stag Industrial Inc. (STAG)
- Market Capitalization: $7.00 Billion
- Dividend Yield (TTM): 3.82%
- Industry: REIT – Industrial
- Headquarters: Boston, Massachusetts
STAG Industrial Inc. (STAG) is a REIT sector specializing in acquiring, owning, and operating industrial properties across the United States. Established in 2010 and based in Boston, Massachusetts, STAG Industrial focuses on single-tenant industrial properties.
As of September 30, 2023, STAG’s portfolio comprises 568 buildings across 41 states, encompassing approximately 112.0 million rentable square feet. Its diverse portfolio includes warehouse/distribution buildings, light manufacturing buildings, a flex/office building, and a few Value Add Portfolio buildings. This diversified mix aims to minimize exposure to any single tenant or industry. Notably, no single tenant accounts for more than approximately 3.0% of STAG’s total annualized base rental revenue, and no single sector represents more than about 10.9% of this revenue.
Service Properties Trust (SVC)
- Market Capitalization: $1.35 Billion
- Dividend Yield (TTM): 9.78%
- Industry: REIT – Hotel & Motel
- Headquarters: Newton, Massachusetts
Service Properties Trust (SVC), a REIT in Massachusetts, primarily focuses on two asset categories: hotels and service-focused retail net lease properties. As of September 30, 2023, SVC had a significant presence in the hospitality sector, owning 221 hotels with over 37,000 guest rooms. These properties are located across the United States, Puerto Rico, and Canada, primarily focusing on extended stays and select service hotels.
In addition to its hotel portfolio, SVC also had considerable investments in the retail sector. As of the same date, it owned 761 retail service-focused net lease properties, encompassing approximately 13.4 million square feet across the United States. This diverse portfolio allows SVC to cater to a wide range of customer needs in various locations.
The company is managed by The RMR Group, a leading U.S. alternative asset management company with a strong track record and extensive experience in commercial real estate operations.
Plymouth Industrial REIT, Inc. (PLYM)
- Market Capitalization: $1.04 Billion
- Dividend Yield (TTM): 3.89%
- Industry: REIT – Industrial
- Headquarters: Boston, Massachusetts
Plymouth Industrial REIT, Inc. (PLYM), headquartered in Boston, Massachusetts, is an industrially focused real estate investment trust. It was listed on the New York Stock Exchange in 2017. The company specializes in acquiring, owning, and managing single and multi-tenant industrial properties. These properties include distribution centers, warehouses, and light industrial spaces. Primarily, their focus is on secondary and select primary markets across the United States.
Plymouth Industrial REIT invests in properties that offer a current operating income with the potential to enhance shareholder value. This approach involves re-positioning properties, improving capital structures, and restructuring tenant leases. The company’s portfolio meets the needs of various tenants, providing spaces that are cost-effective, functional, flexible, and safe. Their approach to real estate investment is vertically integrated, which means they handle various aspects of real estate operations internally, from acquisition to property management.
Seven Hills Realty Trust (SEVN)
- Market Capitalization: $203.36 Million
- Dividend Yield (TTM): 10.26%
- Industry: REIT – Mortgage
- Headquarters: Newton, Massachusetts
Seven Hills Realty Trust (SEVN), based in Newton, Massachusetts, is a specialized REIT. Established in 2008, SEVN focuses on originating and investing in first mortgage loans. These loans are secured by middle market and transitional commercial real estate across the United States.
The company’s investment approach is centered around providing financing solutions to properties that are in transitional phases. This could include properties requiring redevelopment, repositioning, or undergoing other significant changes. By focusing on first mortgage loans, Seven Hills Realty Trust positions itself as a key financier in these real estate ventures, often in markets that are not the primary focus of larger REITs or financial institutions.
Managed by Tremont Realty Capital, an affiliate of The RMR Group, SEVN benefits from the expertise of a leading U.S. alternative asset management company. The RMR Group, with approximately $36 billion in assets under management, brings over 35 years of experience in buying, selling, financing, and operating commercial real estate.
