Top picks 2013: AmREIT
This income REIT is focused on retailing properties in the Lone Star state.
Texas is flourishing. Though it contains only 8% of the nation's people, Texas was responsible for 19% of the country's population growth last year.
Moreover, if it were a stand-alone nation, Texas would boast the 14th largest GDP in the world. Corporations based in the state are doing even better than the economy. Through REIT ownership, investors can essentially become landlords to Texas businesses.
Since the Texas economy is unlikely to slow, occupancy rates and real estate appreciation should be reliable. AmREIT (AMRE) already boasts 29 properties handpicked by a senior management team.
Some of AmREIT's more prominent tenants are GAP, Five Guys, Morton's, Wells Fargo, CVS, Walgreens, Subway, FedEx and Starbucks.
AmREIT's revenues increased 10% to $29.9 million from $27.1 million in the first three quarters of 2012. Meanwhile, its earnings ran 23% higher to $3.7 million thanks to an occupancy rate of 96.8%.
By focusing in Texas, AmREIT positioned itself to take advantage of retail growth from one of the strongest states in the U.S. The shares come equipped with a 4.6% dividend, and should reach above $17.50 as the Texas retail market heats up.
More from TheStockAdvisors.com
Copyright © 2014 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
Do it once a year. This allows the best-performing asset classes to take off and run.
VIDEO ON MSN MONEY
Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.
Contributors include professional investors and journalists affiliated with MSN Money.
Follow us on Twitter @topstocksmsn.