1 infrastructure REIT to benefit from the deployment of 5G
Deploying 5G network infrastructure is going to be a multi-year opportunity for investors, and real estate investment trusts that own and lease the necessary infrastructure are particularly attractive opportunities. In this crazy live Video clip, recorded on January 14, Fool.com contributors Matt Frankel and Jason Hall discuss their favorite band action for 2022.
Matt Frankel: The next category is infrastructure REITs. I’ll have you say your pick first, but if you’re not aware, these companies usually own cell towers, they own fiber optic networks, they own all these communication infrastructure sites. What’s your favorite infrastructure game for 2022?
Jason Hall: International Crown Castle (NYSE: CCI) ticker, CCI. I am still convinced that Crown Castle and American Tower (NYSE: AMT) just need to change name and change symbol because basically they have the wrong names.
Frankel: I agree. American Tower is all over the world while Crown Castle is entirely domestic. It was also my choice. I’m not surprised because the rollout of 5G is going to happen much faster in America than in most other countries where American Tower operates. I think they are the ones who will benefit the most in the medium term. As far as the long term goes, there are enough tailwinds for growth for both. But in the medium term, I see Crown Castle being the winner.
Room: I think so too. I also like the fact that for income investors today you are looking for better income, the returns close to 3%. Their track record of growing that yield is incredible. I think it will continue to grow into such a solid company. I agree, and again I agree. I like that they’re in the more mature market where they’re focusing right now where this rollout is going to happen quickly.
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