H
ere are three top-quality businesses in the real estate sector that are worth considering for your portfolio:

    1. Realty Income (NYSE: O): This is a real estate investment trust (REIT) that owns a portfolio of over 15,000 single-tenant properties across the U.S. and Europe, primarily occupied by retail tenants. Its tenants operate in recession-resistant or e-commerce resistant businesses such as supermarkets, drug stores, and warehouse clubs. Realty Income pays a monthly dividend yield of 5.2% and has a history of delivering excellent long-term returns.

    2. EPR Properties (NYSE: EPR): This REIT is focused on experiential real estate, including waterparks, ski resorts, eat-and-play businesses like TopGolf, and more. Its largest property type is movie theaters, which have faced challenges in recent years but are generally high-quality and high-performing. EPR sees a $100 billion growth opportunity in its target property types and offers a dividend yield of 7.2% for investors willing to hold on as the movie theater situation evolves.

    3. Ryman Hospitality Properties (NYSE: RHP): This REIT owns six large-scale hotels focused on group events under the Gaylord brand name and a portfolio of entertainment assets including iconic performance venues like the Grand Ole Opry and Ryman Auditorium, as well as the Ole Red dining and entertainment chain. Ryman's revenue hit an all-time high in the most recent quarter, as did its average daily room rates. It trades at a very attractive valuation from a long-term perspective of about 12 times forward funds from operations (FFO).

    While none of these stocks have doubled or tripled investors' money in a short period of time, they have all delivered massive gains over the long run. If you invest in rock-solid REITs like these, hold your shares for a long time, and reinvest your dividends along the way, they definitely have millionaire-making potential.

    Before you buy stock in Realty Income, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Realty Income wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $731,449!* Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than quadrupled the return of S&P 500 since 2002*. See the 10 stocks »* Stock Advisor returns as of August 26, 2024 Matt Frankel has positions in EPR Properties, Realty Income, and Ryman Hospitality Properties. The Motley Fool has positions in and recommends Realty Income. The Motley Fool recommends EPR Properties and Ryman Hospitality Properties. The Motley Fool has a disclosure policy.