With the market entering a seasonally weak period, Jim Cramer said Friday that real estate investment trusts are a safe bet.
“You need a list of safety stocks that hold up as the market goes down that you can buy slowly,” the “Mad Money” host said.
Real estate investment trusts, or REITs, are typically thought of as defensive stocks because they tend to be stable regardless of how the overall market performs. REITs have done well in 2021 as investors have picked them up amid inflation concerns, but Cramer thinks the assets have even more room to run.
“I know they’re not interesting. The last thing we want right now is interesting,” Cramer said. “If your eyes glaze over here, I want you to get some darn Visine because these are the kinds of stocks you could buy into the weakness.”
The host identified 10 REITs he would recommend investors buy if they’re looking for a steady ride.
- American Tower
American Tower is “the most global play on cell tower real estate” and “the stock’s been a fabulous long-term performer,” Cramer said. - Crown Castle
Cramer said investors could pick either American Tower or Crown Castle.
“After years of spending heavily to build out its network in more densely populated areas, Crown Castle has cut back on its capital spending dramatically,” the host said.
- Simon Property Group
Simon Property Group “owns the best malls in America,” Cramer said. “Sooner or later I think the stock will make its next move higher.” - Tanger Factory Outlet
Tanger Factory Outlet operates upscale outlet centers.
“Everyone in good or bad times wants or needs a bargain,” the host said.
- Prologis
Prologis leases fulfillment centers to companies like Amazon, Home Depot, FedEx, UPS and XPO Logistics, Cramer highlighted.
“This is one of those REITs that tends to give you a great total return because its stock just won’t quit,” he said.
- Equinix
Equinix is the best data center REIT, according to the “Mad Money” host.
“This thing’s a buy into any meaningful pullback,” Cramer said of Equinix.
- Ventas
Ventas is a health care REIT that struggled in 2020 in the depths of the Covid crisis, but is coming back this year, according to Cramer,
“I would not surprise me if [Ventas] raised the payout,” Cramer said.
- Innovative Industrial Properties
Innovative Industrial Properties works with the medical marijuana industry.
“They’ve been able to raise the payout for six consecutive quarters. Imagine how big that dividend can get if we ever legalize weed around the country,” the host said.
- Iron Mountain
Iron Mountain used to focus on physical record storage, but now works on digital record storage.
Cramer said Iron Mountain has a “monster” yield. “I don’t know what more you can ask,” he said.
- Starwood Property Trust
Starwood Property Trust owns apartments, office buildings and other commercial properties, Cramer highlighted.
The host likes Starwood Property’s dividend and called the payout “rock solid.”
