Unlocking Wealth: 3 Real Estate Gems Primed for Long-Term Success

The real estate sector has faced significant challenges since the Federal Reserve's interest rate hikes in 2022, but this turbulence has created unique opportunities for savvy investors. Three real estate investment trusts (REITs) stand out as exceptional long-term wealth-building options worth a closer look.

Discover the REITs Poised to Make You a Millionaire

Realty Income: The Recession-Resistant Retail Powerhouse

Realty Income (NYSE: O) is a REIT that has been a cornerstone of my portfolio for over a decade. This unique REIT owns a vast portfolio of over 15,000 single-tenant properties across the U.S. and Europe, primarily leased to recession-resistant and e-commerce-resistant tenants. From supermarkets and drug stores to warehouse clubs, Realty Income's tenants operate in sectors that can withstand economic downturns.The beauty of Realty Income's business model lies in its long-term leases, which require tenants to cover taxes, insurance, and maintenance costs. This allows the REIT to enjoy a predictable, growing stream of income year after year, regardless of market conditions. At current prices, Realty Income boasts a 5.2% dividend yield, paid out in monthly installments, and has a remarkable history of dividend increases and market-beating total returns over its 30-year public history.

EPR Properties: Tapping into the Experiential Real Estate Boom

EPR Properties (NYSE: EPR) is another REIT that has carved out a niche in the experiential real estate market. It owns a diverse portfolio of properties, including waterparks, ski resorts, and eat-and-play businesses like TopGolf. While the company's largest property type, movie theaters, has faced challenges in recent years, EPR's high-quality, high-performing theaters have weathered the storm well.Despite the uncertainty in the movie industry, EPR sees a massive $100 billion growth opportunity in its target property types in the years ahead. For investors willing to weather the evolving movie theater landscape, EPR offers a compelling 7.2% dividend yield, providing an attractive income stream as the company taps into the growing demand for immersive, experiential real estate.

Ryman Hospitality Properties: Capitalizing on the Return of Group Travel

Ryman Hospitality Properties (NYSE: RHP) has been one of the standout performers in the real estate sector since the Federal Reserve's rate hikes, and for good reason. The company's properties, which include large-scale hotels focused on group events and iconic entertainment venues such as the Grand Ole Opry and Ryman Auditorium, have bounced back strongly from the pandemic.In the most recent quarter, Ryman reported record-breaking revenue and average daily room rates, showcasing the resilience of its business model. The company is also investing hundreds of millions of dollars to enhance the cash-generating potential of its hotels and is constructing a massive new entertainment venue in Nashville. With a 4.3% dividend yield and a very attractive valuation of around 12 times forward funds from operations (FFO), Ryman Hospitality Properties offers investors a compelling long-term growth story in the recovering group travel and entertainment sectors.These three REITs, Realty Income, EPR Properties, and Ryman Hospitality Properties, have all demonstrated the ability to generate substantial long-term returns for investors. While they may not provide lightning-fast wealth creation, their proven track records of consistent dividend growth and market-beating total returns make them strong candidates for building substantial wealth over time. By investing in these high-quality real estate companies and holding on for the long haul, savvy investors can position themselves for the potential to become millionaires through the power of compounding returns.