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Virginia REITs: Best Picks for Mother of States

Virginia, rich in history and economic growth, offers unique opportunities for savvy investors. Here, we’ll guide you through the best picks in Virginia REITs, providing insights into why these investment options stand out in the Mother of States. 

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Key Takeaways – Best Virginia REITs Chart

REIT Market Cap Dividend Yield (TTM) Industry
$26.07 Billion
$3.86 Billion
Hotel & Motel
$3.31 Billion
Hotel & Motel
$1.09 Billion
$684.27 Million
$576.37 Million
$499.95 Million
$29.45 Million
Hotel & Motel
$11.50 Million

AvalonBay Communities, Inc. (AVB)

  • Market Capitalization: $26.07 Billion
  • Dividend Yield (TTM): 3.59%
  • Industry: REIT – Residential
  • Headquarters: Arlington, Hopewell, Virginia

Founded in 1978 and headquartered in Arlington, Virginia, AvalonBay is a part of the S&P 500.

AvalonBay owns and operates a vast portfolio, predominantly featuring high-end apartment communities in major metropolitan areas and suburban neighborhoods within the United States. The company’s presence is particularly strong in the Northeast, Pacific Northwest, Northern and Southern California, and the Mid-Atlantic regions.

Known for luxurious amenities, AvalonBay properties often include features like pools, fitness centers, and community spaces. The company emphasizes sustainability and community integration in its design and operational practices.

Apple Hospitality REIT, Inc. (APLE)

  • Market Capitalization: $3.86 Billion
  • Dividend Yield (TTM): 5.69%
  • Industry: REIT – Hotel & Motel
  • Headquarters: Richmond, Virginia

Established in 2007, Apple Hospitality focuses on properties that cater to business and leisure travelers seeking premium accommodations.

This company operates its hotels exclusively under the renowned Marriott and Hilton brands. The company’s structure includes wholly owned, taxable REIT subsidiaries that lease their entire hotel portfolio from qualified REIT subsidiaries. Management of these hotels is handled through separate agreements with a range of hotel management companies, none of which are affiliated with Apple Hospitality. The sole source of the company’s income is the revenue generated from its hotel operations.

Park Hotels & Resorts (PK)

  • Market Capitalization: $3.31 Billion
  • Dividend Yield (TTM): 3.81%
  • Industry: REIT – Hotel & Motel
  • Headquarters: Tysons, Virginia

Based in Tysons, Park Hotels & Resorts was officially formed in 2016 as a spin-off from Hilton Worldwide. Its portfolio includes some of the most iconic and well-located properties across the United States and in select international markets. These properties are primarily situated in major city centers, near airports, and in resort destinations.

A key characteristic of Park Hotels & Resorts is its affiliation with renowned brands, predominantly under the Hilton umbrella. This includes flagship properties like the Hilton San Francisco Union Square and the Waldorf Astoria Orlando. The company’s strategy involves leveraging these affiliations’ brand strength and operational expertise to attract a high level of occupancy and revenue.

Armada Hoffler Properties, Inc. (AHH)

  • Market Capitalization: $1.09 Billion
  • Dividend Yield (TTM): 6.37%
  • Industry: REIT – Diversified
  • Headquarters: Virginia Beach, Virginia

Armada Hoffler Properties, Inc. is a prominent REIT specializing in high-quality office, retail, and multifamily properties. The company was founded in 1979 by Daniel A. Hoffler. It went public in 2013.

Armada Hoffler’s portfolio is diverse, consisting of a mix of office buildings, retail centers, and upscale residential units, primarily located in the Mid-Atlantic and Southeastern United States. The company is known for its integrated business model, which encompasses development, building, ownership, and management of its properties. 

Key projects in their portfolio include the Town Center of Virginia Beach, a prominent mixed-use development that has reshaped the city’s downtown area, and several high-profile office and retail properties in Baltimore, Maryland, and Charleston, South Carolina.

Dynex Capital, Inc. (DX)

  • Market Capitalization: $684.27 Million
  • Dividend Yield (TTM): 12.91%
  • Industry: REIT – Mortgage
  • Headquarters: Glen Allen, Virginia

Dynex Capital, Inc. is a well-established mortgage real estate investment trust (mREIT) based in Glen Allen, Virginia. The company was founded in 1987.

As an mREIT, Dynex Capital primarily invests in residential and commercial mortgage-backed securities (MBS). These investments include both government agency-backed securities, like those from Ginnie Mae, Fannie Mae, and Freddie Mac, and non-agency securities, which are not backed by government guarantees. This diverse portfolio approach allows the company to manage risks and capitalize on different market conditions.

The company stands out for its focus on leveraging a rigorous, analytics-driven investment approach. They employ advanced risk management strategies to handle the complexities and volatility associated with mortgage-backed securities. 

Gladstone Commercial Corporation (GOOD)

  • Market Capitalization: $576.37 Million
  • Dividend Yield (TTM): 9.10%
  • Industry: REIT – Diversified
  • Headquarters: McLean, Virginia

Gladstone Commercial Corporation was founded in 2003 and is part of the broader Gladstone Companies network.

Its portfolio primarily consists of single-tenant and anchored multi-tenant net leased industrial and office properties. These properties are strategically located across various regions in the U.S., providing geographic diversity. The company targets properties leased to tenants with strong credit profiles, contributing to a stable cash flow.

The company also prides itself on its hands-on asset management approach, ensuring that each property is well-maintained and effectively managed to meet the needs of its tenants.

Gladstone Land Corporation (LAND)

  • Market Capitalization: $499.95 Million
  • Dividend Yield (TTM): 3.99%
  • Industry: REIT – Specialty
  • Headquarters: Mclean, Virginia

Gladstone Land Corporation is a distinctive REIT focused primarily on farmland and farm-related properties.

Gladstone Land’s properties are strategically located across major agricultural regions in the U.S., including California, Florida, and the Pacific Northwest. These regions are key areas for producing high-value crops like berries, nuts, and vegetables.

The company’s business model involves acquiring high-quality farmland and leasing it to experienced farmers. These leases are typically triple-net, meaning the tenant is responsible for most property expenses, providing a stable income stream for the company.

Sotherly Hotels Inc. (SOHO)

  • Market Capitalization: $29.45 Million
  • Dividend Yield (TTM): –
  • Industry: REIT – Hotel & Motel
  • Headquarters: Williamsburg, Virginia

Headquartered in Williamsburg, Sotherly Hotels was founded in 1957 under MHI Hospitality Corporation and rebranded to its current name in 2013.

Sotherly Hotels primarily focuses on owning, acquiring, and renovating upscale and upper-upscale full-service hotels in the Southern United States. The company’s portfolio typically includes properties located in major business and tourist destinations, with a concentration in cities that exhibit strong, historical ties and vibrant cultural heritage. 

Additionally, Sotherly Hotels strongly emphasizes personalized service and locally inspired amenities, aiming to create a unique experience for guests.

Medalist Diversified REIT, Inc. (MDRR)

  • Market Capitalization: $11.50 Million
  • Dividend Yield (TTM): 6.18%
  • Industry: REIT – Diversified
  • Headquarters: Richmond, Virginia

Founded in 2003, Medalist Diversified REIT primarily targets properties that offer the potential for significant capital appreciation, typically through renovation, re-leasing, and improved operational efficiencies.

The company’s investment strategy focuses on properties in Virginia, North Carolina, South Carolina, Alabama, Florida, and Georgia. They target under-managed properties with value-add opportunities, leveraging their extensive network in these thriving Southeast markets. Their approach prioritizes secondary and tertiary markets for better returns due to reduced competition from institutional investors.

They invest in necessity-based real estate, including flex-industrial, retail, multifamily, and select service hotels resistant to economic downturns, online retail impacts, and pandemic-related disruptions.

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