Real estate investments provide a great opportunity to generate returns, hedge against inflation, and diversify your portfolio. But if you don’t want to deal with the troubles of owning and maintaining a property, then real estate investment trusts (REITs) may be a good alternative.
With a REIT, you get exposure to the real estate market without having to worry about unruly tenants, paying for utilities, and making repairs and renovations.
But with hundreds of REITs to choose from, finding the ones that suit your investment goals can be challenging. To help you with this task, InvestmentNews lists the 10 best REITs to invest in in this guide. We’ll look at the key parameters that make these assets a sound investment option.
As a bonus, we’ll list some of the best-performing REIT exchange-traded funds (ETFs) for those who prefer added diversification.
If you’re new to investing, REITs are companies that own and operate revenue-generating properties. They can hold one or more types of properties, including:
You can learn more about how real estate investment trusts work in this guide to REIT investing.
Here are the top publicly traded REITs to invest in based on figures from this website. While the list is ranked based on one-year returns, we also gathered relevant information, including dividend yield and market cap. All data are current as of January 13, 2025.
The numbers we compiled are for informational purposes only and not intended as trading data.
1-year return: 57.04%
Forwarded dividend yield: 2.80%
Stock price: $102.24
Market cap: $30.2 billion
Iron Mountain Inc. specializes in storage and information management services. The bulk of its revenue comes from its storage and logistics business. The company also provides records and document management. It also operates data centers.
Iron Mountain’s services are designed to help businesses lower storage costs, use information better, recover from disasters, and comply with industry regulations. It is one of the best REITs to invest in for the long term.
1-year return: 44.74%
Forwarded dividend yield: 4.94%
Stock price: $62.58
Market cap: $4.25 billion
SL Green Realty Corp. is a real estate investment trust focused on acquiring and managing commercial properties in Manhattan. The company is considered as New York City’s largest office landlord.
According to its website, SL Green Realty holds interest in 55 buildings occupying a total of 31.8 million square feet. These include 28.1 million square feet in Manhattan establishments and 2.8 million square feet securing debt and preferred equity investments. These figures are current as of September 2024.
1-year return: 43.54%
Forwarded dividend yield: 11.51%
Stock price: $8.34
Market cap: $688 million
TPG Real Estate Finance Trust Inc. operates as a commercial real estate company. It is a subsidiary of the global alternative asset firm TPG. TPG RE Finance Trust is considered among the best REITs to invest in based on total returns for the past year.
The company originates commercial mortgage loans in primary and select secondary markets in the US. It also acquires and manages other commercial real estate-related debt instruments. Its portfolio consists mostly of first mortgage loans, totaling commitments of around $5.2 billion.
1-year return: 43.54%
Forwarded dividend yield: 2.13%
Stock price: $125.72
Market cap: $78.8 billion
Fortune 500 company Welltower Inc. invests primarily in healthcare infrastructure. It holds investments in more than 3,000 real estate properties across the US, Canada, and the UK.
According to its website, Welltower provides real estate capital to senior housing operators, post-acute providers, and healthcare systems. The goal is to help improve the patients’ wellness and overall healthcare experience.
1-year return: 39.73%
Forwarded dividend yield: 0.27%
Stock price: $72.73
Market cap: $1.8 billion
Pathward Financial Inc. is the bank holding subsidiary of banking giant Pathward. It was previously known as Meta Financial Group, but sold its name to Facebook in 2022.
The company offers a range of commercial financial products and services. These include:
It also provides consumer lending products such as short-term refund and electronic return originator advance loans. The firm offers warehouse financing services as well.
1-year return: 35.79%
Forwarded dividend yield: 7.08%
Stock price: $16.96
Market cap: $2.91 billion
Outfront Media Inc. has a portfolio of advertising space that includes billboards and transit displays. The company generates revenue by allowing businesses to advertise on its structures and properties under short-term contracts.
A huge portion of Outfront Media’s revenue comes from billboard advertising agreements in the US. About half of this is from its displays in Los Angeles and New York City. Its clients include major players in the entertainment, retail, and healthcare industries.
Apart from being one of the best REITs to invest in, the firm is also among the largest outdoor media companies in the country.
1-year return: 32.28%
Forwarded dividend yield: 6.93%
Stock price: $28.84
Market cap: $3.11 billion
Highwoods Properties Inc. operates as a REIT involved in leasing, development, acquisition, management, and construction of office spaces and buildings. The properties are in various business districts across the US, such as:
According to its website, Highwoods Properties owns interest in around:
28.4 million rentable square feet of in-service properties
1.6 million rentable square feet of office properties under development
5.2 million rentable square feet of development land for potential office buildings
1-year return: 32.17%
Forwarded dividend yield: 3.39%
Stock price: $22.45
Market Cap: $2.73 billion
Acadia Realty Trust operates as an equity real estate investment fund. The company is involved in the ownership, acquisition, development, and management of retail properties. These include shopping centers and mixed-use establishments with retail spaces.
Acadia Realty’s properties are in major cities across the country, including:
The strategic location of its properties makes the firm one of the best REITs to invest in.
1-year return: 31.11%
Forwarded dividend yield: 2.25%
Stock price: $102.21
Market cap: $23.6 billion
Expand Energy Corporation is an independent exploration and production firm formerly known as Chesapeake Energy Corporation. It is involved in the acquisition and development of properties to produce natural gas and oil from underground reservoirs.
The company owns a portfolio of onshore natural gas assets in the US, including more than 5,000 natural gas wells. It also holds interest in natural gas resources in the Marcellus Shale in the northern Appalachian Basin in Pennsylvania and the Haynesville/Bossier Shales in northwestern Louisiana.
Expand Energy is among the top REITs to invest in if you want exposure to oil and natural gas assets.
1-year return: 30.68%
Forwarded dividend yield: 2.11%
Stock price: $12.34
Market cap: $14.5 million
Medalist Diversified REIT Inc. specializes in the acquisition, ownership, and management of commercial real estate in the Southeast region of the US. The markets include:
The real estate investment trust’s portfolio includes commercial, hotel, and multi-family residential properties. Medalist Fund Manager Inc., its sister company, serves as its investment manager.
Here’s a summary of our picks for the 10 best REITs to invest in.
Check out this guide on investing in real estate if you’re interested in diversifying your portfolio with real estate assets, including REITs.
InvestmentNews considered the following parameters for our rankings:
Total return: Simply called return, this is the measure of the amount money made or lost on an investment over a set period. In our rankings, the period is the past 12 months ending on January 13, 2025.
Forwarded dividend yield: Dividend yield refers to the ratio of the percentage of a company's annual dividend payments relative to its stock price. In the rankings, we compiled data on annualized forwarded dividend yield. This multiplies the most recent dividend payout amount by its frequency and divides it by the previous close price.
Stock price: Also called share price, this is how much it would cost you to buy a share in a company. The price is also a reflection of a company’s value.
Market capitalization: Also known as market cap, this shows the total value of the company’s shares of stock. Market cap gives you an idea of the company’s size. It can also indicate how stable or risky a company is.
It depends on your circumstances and investment goals. If your investments are intended to provide consistent income, then it’s better to focus on dividend yield. If you’re planning on holding your portfolio long term, then it makes more sense to look at total return.
Learn more about these key industry terms in this guide on how to invest in stocks.
If you prefer a more diversified option than REITs, then REIT exchange-traded funds are a good alternative. REIT ETFs can be more suited for beginner investors as these provide you with added diversification than just investing in a single REIT.
REIT ETFs are a pool of real estate assets that you can find in major stock exchanges. They work a lot like mutual funds, but instead of buying and selling shares of stock, you trade shares of real estate properties.
While REITs own properties, REIT ETFs don’t. REIT ETFs have a fund manager who oversees the selection of assets held in the fund.
Here’s some of the best REIT ETFs to invest in based on our research. All data are current as of January 13, 2025.
1-year return: 12.17%
Forwarded dividend yield: 2.91%
Stock price: $12.34
Market cap: $8.2 million
Residential REIT ETF is an actively managed exchange-traded fund that invests in the following:
It has holdings on some of the best REITs in our list, including Welltower.
1-year return: 9.73%
Forwarded dividend yield: 3.28%
Stock price: $78.21
Market cap: $1.2 billion
iShares Residential and Multisector Real Estate ETF provides exposure to the US residential real estate market. It seeks to track investment results in an index consisting of residential, healthcare, and self-storage real estate equities.
1-year return: 2.98%
Forwarded dividend yield: 3.90%
Stock price: $30.52
Market cap: $53.2 million
Nuveen Short-Term REIT ETF focuses on REITs with short-term lease agreements. It seeks to track investment results of an index consisting of equities with holdings in apartment buildings, hotels, self-storage facilities, and manufactured homes.
Find out more about how exchange-traded funds work in this guide to investing in ETFs for beginners.
With the potential to provide high, regular returns, REITs can be a great addition to your investment portfolio. The instant diversification that REIT investments provide is also a good hedge against potential losses.
REITs, however, aren’t free of risk. They can be sensitive to interest rate changes and come with fees that could eat into your returns. Also, you must pay income taxes on any dividends you receive. This is unless your REIT investments are held in a tax-advantaged account like an IRA.
Before investing in REITs, you must first weigh the pros and cons of doing so. Assess if this type of investment fits your financial goals.
If you’re unsure of how to proceed, an experienced financial advisor can assist you in your investment journey. Check out our Best in Wealth Special Reports page to find one. Our special reports feature only companies and professionals who are considered as respected and reliable market leaders.
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