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Pennsylvania REITs: Keystone State’s Top Market Performers

Pennsylvania’s real estate landscape is evolving, and at the heart of this transformation are its REITs. In this article, we spotlight these key players. We will introduce the diverse array of Pennsylvania REITs, focusing on their unique characteristics and investment appeal.

Best Pennsylvania REITs - Featured Image

Key Takeaways – Best Pennsylvania REITs Chart

REIT Market Cap Dividend Yield (TTM) Industry
$12.86 Billion
$10.38 Billion
$3.34 Billion
$948.26 Million

Gaming and Leisure Properties, Inc. (GLPI)

  • Market Capitalization: $12.86 Billion
  • Dividend Yield (TTM): 5.93%
  • Industry: REIT – Specialty
  • Headquarters: Wyomissing, Pennsylvania

Gaming and Leisure Properties, Inc. (GLPI), headquartered in Wyomissing, Pennsylvania, is a REIT specializing in casino properties. Established in November 2013 as an offshoot from Penn National Gaming, GLPI has notably impacted the casino property sector, owning 57 casino properties primarily leased to other entities.

Key to GLPI’s operations are two divisions: GLP Capital and TRS Properties. GLP Capital, the primary revenue generator, primarily focuses on leasing dockside and land-based casinos, predominantly located in the American Midwest. Under long-term leases, these properties offer Penn National Gaming options for future extensions, demonstrating GLPI’s strategic partnerships and stable income model. On the other hand, TRS Properties, managing Hollywood Casino Perryville and Hollywood Casino Baton Rouge, contributes significantly to GLPI’s revenue through gaming activities.

In recent years, GLPI has demonstrated adaptability and growth. In 2021, it expanded its tenant base by adding Bally’s Corporation and strategically acquired properties such as Dover Downs racino and land for future developments. This expansion continued into 2023 with notable acquisitions like Bally’s Tiverton and Hard Rock Hotel & Casino Biloxi, alongside the land purchase for a new Hard Rock Casino in Rockford, Illinois. These moves underline GLPI’s commitment to diversifying its portfolio and securing its position in the dynamic casino property market.

In essence, GLPI’s blend of strategic property acquisitions, long-term leasing arrangements, and a focus on key geographic areas underlines its unique position in the REIT sector, particularly within the gaming industry.

CubeSmart (CUBE)

  • Market Capitalization: $10.38 Billion
  • Dividend Yield (TTM): 4.29%
  • Industry: REIT – Industrial
  • Headquarters: Malvern, Pennsylvania

CubeSmart, a self-administered and self-managed Real Estate Investment Trust (REIT), has carved out a significant niche in the U.S. self-storage market. Established in July 2004 as U-Store It Trust, CubeSmart has its headquarters in Malvern, Pennsylvania. The company has become the third-largest self-storage operator in the United States, with a strong presence in states like Florida, Texas, California, New York, and Illinois.

At its core, CubeSmart focuses on acquiring, owning, operating, and developing self-storage facilities. As of 2023, the company boasts a substantial portfolio of 613 self-storage properties spread across 41 states and the District of Columbia, encompassing 36.6 million rentable square feet. This extensive network of storage facilities primarily caters to residential and commercial customers, offering them enclosed storage spaces available mostly on a flexible month-by-month rental basis.

Independence Realty Trust (IRT)

  • Market Capitalization: $3.34 Billion
  • Dividend Yield (TTM): 4.00%
  • Industry: REIT – Residential
  • Headquarters: Philadelphia, Pennsylvania

Independence Realty Trust Inc (IRT), a real estate investment trust (REIT), specializes in acquiring, owning, operating, and improving multifamily apartment communities, primarily across non-gateway U.S. markets. With a keen focus on cities like Louisville, Memphis, Atlanta, and Raleigh, IRT strategically positions itself in submarkets that offer a blend of amenities, including quality school districts, retail options, and major employment centers. This approach is designed to provide residents with a comprehensive living experience while ensuring sustainable growth and scale for the company.

IRT’s business strategy is characterized by a balance between growth through acquisitions and strategic mergers, and a focus on improving and managing its existing properties. A notable event in IRT’s recent history is its December 2021 merger with Steadfast Apartment REIT, Inc. (STAR), significantly bolstering its market presence. This merger aimed to create a leading public multifamily REIT, particularly in the high-growth U.S. Sunbelt region. With an equity market capitalization of around $5.6 billion and a total enterprise value of approximately $8.3 billion post-merger, IRT solidified its position in the market.

Brandywine Realty Trust (BDN)

  • Market Capitalization: $948.26 Million
  • Dividend Yield (TTM): 13.58%
  • Industry: REIT – Office
  • Headquarters: Philadelphia, Pennsylvania

Brandywine Realty Trust, founded in 1994 by Jerry Sweeney, has become a significant player in the real estate sector, particularly in office, life science/lab, residential, and mixed-use properties. The company’s strategic operations are spread across several key markets, including Philadelphia, Washington D.C., and Austin, Texas.

Brandywine’s portfolio is diverse and segmented to cater to specific regional needs. In Philadelphia, the focus is on properties within the city, aligning with the urban dynamics of Pennsylvania’s largest city. The Pennsylvania Suburbs segment covers properties in the surrounding counties, addressing the demand in suburban areas. In Austin, Texas, the company taps into the growing demand in one of America’s fastest-growing cities. At the same time, the Metropolitan Washington, D.C. segment includes properties in Northern Virginia, Washington, D.C., and Southern Maryland, a region known for its robust office and residential market.

While Brandywine Realty Trust has faced market challenges, including fluctuations in its dividend history and broader challenges in the office real estate sector, it remains a key contributor to the real estate landscape in its operational regions. Its diversified portfolio across various segments, including life science/lab and mixed-use properties, positions the company to adapt and grow in a changing market environment.

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