REITs could be excellent buys this year. If analyst forecasts are to be believed, then interest rates could be reduced soon, with some economists predicting it could happen as early as June this year.

Falling interest rates are great news for REITs. Not only does it reduce the interest payments for the debts of these companies, but falling rates also decrease the price and demand for bonds. As bonds become less attractive, REITs move into the center stage as yield-hungry investors seek alternative options for income.

I believe that even very early-stage investors should consider owning at least some income-generating assets such as REITs, along with a diversified portfolio of dividend stocks. Starting or improving that portfolio in 2024 can be a good idea, as dividend growth continues to be a monster over long periods of time.

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So if you’d like some ideas of what REITs to add to your portfolio, then read on. Here I’ve researched three lesser-known companies that could be a good addition to your portfolio.

Seritage Growth Properties (SRG)

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Seritage Growth Properties (NYSE:SRG) focuses on redeveloping retail properties, especially those previously owned by Sears after it went bankrupt.

SRG’s approach diverges dramatically from traditional REITs that simply manage existing properties. Instead, it transforms what it owns into mixed-use developments. This means the mixed-use aspect typically includes a combination of retail, office and residential spaces.

The company’s approach is riskier than simply managing existing lots, but the capital appreciation potential is the corresponding upside. SRG offers investors a 7.38% yield for its preferred shares.

Wall Street also rates SRG stock a “Strong buy”.

Global Net Lease (GNL)

Global Net Lease (NYSE:GNL) specializes in acquiring and managing a diversified global portfolio of commercial properties with long-term net leases.

International exposure thru a U.S.-listed stock is an appealing option. The issue with buying ADRs and some OTC shares is that they are subject to withholding taxes for many countries. These extra taxes eat up much of an investor’s income, and can also cause some complications and headaches when it comes to filing and paying taxes. GNL’s inbuilt international diversification can therefore be seen as accretive for investors.

GNL’s dividend yield is also massive at 15.93% on a forward basis. However, this payout comes at a steep risk: namely, it’s distributing far more of its cash flow than it’s bringing in. Its dividend payout ratio is 139.33% at the time of writing.