Three REITs to Sell: Orion Office REIT (ONL), Farmland Partners (FPI), Medical Properties Trust (MPW)

Headline: “Investors Beware: Three REITs to Sell Amidst Rising Risks”

In the world of Real Estate Investment Trusts (REITs), the allure of dividends can be tempting. However, recent market trends have highlighted potential risks that investors should consider before diving in. Here are three REITs that may be worth selling:

1. Orion Office REIT (ONL):
Orion Office REIT has seen a significant drop in market value, leading to an attractive forward dividend yield of 11.9%. However, with an occupancy rate below industry average and high refinancing risk, ONL REIT may not be as promising as it seems.

2. Farmland Partners (FPI):
Farmland Partners’ recent restructuring efforts and declining book value raise concerns about its future performance. Despite a rise in adjusted funds from operations, the REIT’s overvalued price-to-AFFO ratio suggests caution for investors.

3. Medical Properties Trust (MPW):
MPW REIT has faced challenges with its largest tenant’s solvency issues, raising doubts about its stability. While its price-to-AFFO and dividend yield may seem attractive, ongoing risks and a fragile balance sheet warrant a cautious approach.

As the market landscape shifts and risks emerge, investors should carefully evaluate their REIT holdings to ensure they are aligned with their investment goals and risk tolerance.