Top Five REITs With High Yields

BOSTON (TheStreet) -- Real estate investment trusts don't pay corporate taxes as long as they derive 75% of their income from rents and distribute at least 90% to shareholders. Distributions are taxed as income. The following top-ranked REITs offer high yields.

5. Omega Healthcare Investors(OHI) owns long-term care facilities.

The numbers: Fourth-quarter net income rose 3.4% to $16 million, but earnings per share dropped 16% to 16 cents, hurt by a higher share count. Revenue inched up 0.3% to $49 million. The operating margin widened from 51% to 55%. Omega holds $12 million of cash and $738 million of debt.

The stock: Omega has gained 57% in the past year. It sells for a price-to-projected-earnings ratio of 16, a discount to peers. Its PEG ratio, a measure of value relative to growth, of 0.9 reflects a 46% discount to the industry average. A PEG ratio below 1 implies cheap shares. The REIT yields 6.8%.