Cramer Likes To Buy These 10 REITs As The Market Shakes

As the market enters a period of seasonal weakness, CNBC’s Jim Cramer said on Friday that real estate investment trusts were a safe bet.

“You need a list of security securities that are resistant to the downturn in the market and that you can buy slowly,” the host of “Mad Money” said.

Real estate investment trusts, or REITs, are generally considered defensive stocks because they tend to be stable regardless of the performance of the market as a whole. REITs performed well in 2021 as investors picked them up amid inflation concerns, but Cramer believes assets have even more wiggle room.

“I know they’re not interesting. The last thing we want right now is interesting,” Cramer said. “If your eyes are glassy in here, I want you to buy the goddamn Visine because those are the kinds of stocks you could buy in weakness.”

The host has identified 10 REITs he would recommend investors buy if they are looking for a stable lead.

American Tower is “the world’s most global cell tower real estate game” and “the title has been a fabulous long-term performer,” Cramer said.

Cramer said investors can choose either the American Tower or the Crown Castle.

“After years of massive spending to expand its network in more densely populated areas, Crown Castle has significantly reduced its capital spending,” the host said.

Simon Property Group “owns the best shopping centers in America,” Cramer said. “Sooner or later I think the stock will make its next move upward.”

Tanger Factory Outlet operates high-end brand centers.

“Everyone, good times and bad, wants or needs a good deal,” said the host.

Prologis leases distribution centers from companies like Amazon, Home Depot, FedEx, UPS and XPO Logistics, Cramer said.

“It’s one of those REITs that tends to give you a great total return because its actions just won’t stop,” he said.

Equinix is ​​the best data center REIT, according to host “Mad Money”.

“This thing is a buy in any significant pullback,” Cramer said of Equinix.

Ventas is a healthcare REIT that struggled in 2020 in the depths of the Covid crisis, but returns this year, according to Cramer,

“I wouldn’t be surprised if [Ventas] increased the payout, ”Cramer said.

Innovative Industrial Properties works with the medical marijuana industry.

“They’ve been able to increase the payout for six straight quarters. Imagine how much that dividend can get if we ever legalize weed across the country,” the host said.

Previously, Iron Mountain focused on the storage of physical recordings, but is now working on the storage of digital recordings.

Cramer said Iron Mountain had a “monster” return. “I don’t know what more you can ask for,” he said.

Starwood Property Trust owns apartments, office buildings and other commercial properties, Cramer said.

The host likes the Starwood Property dividend and called the payout “rock solid”.