Real estate investments can be an excellent way to earn returns, generate cash flow, hedge against inflation and diversify an investment portfolio. However, buying physical properties can be costly, difficult and risky for an individual.
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Instead, investors can buy shares of diversified real estate investment trusts, or REITs. REITs are public companies that own large portfolios of real estate and pay dividends with the income generated from those properties. There are many types of REITs, providing investors access to residential, commercial and specialty real estate. Here are 10 of the best REITs to buy in 2025, according to Morningstar analysts:
| REIT Stock | Upside Potential From March 7 Close | Forward Dividend Yield |
| American Tower Corp. (ticker: AMT) | 8.3% | 3.2% |
| Realty Income Corp. (O) | 28.2% | 5.5% |
| Crown Castle Inc. (CCI) | 38.1% | 6.4% |
| SBA Communications Corp. (SBAC) | 18.4% | 1.9% |
| Weyerhaeuser Co. (WY) | 14.1% | 2.7% |
| Kimco Realty Corp. (KIM) | 23.6% | 4.6% |
| Healthpeak Properties Inc. (DOC) | 48.7% | 5.9% |
| BXP Inc. (BXP) | 31.8% | 5.6% |
| Host Hotels & Resorts Inc. (HST) | 40.8% | 4.9% |
| Federal Realty Investment Trust (FRT) | 40.1% | 4.3% |
American Tower Corp. (AMT)
American Tower is a specialized REIT that operates the world’s largest independent portfolio of wireless communications and broadcast towers. American Tower shares are up about 17% this year, the best performance of any REIT on this list. Analyst Samuel Siampaus says American Tower dealt with tepid carrier activity throughout 2024, but carrier spending trends appear to be solid in 2025. Siampaus says greater carrier emphasis on diversification and co-locations should continue to support organic tower growth, and Africa will be a key international growth market for American Tower. Morningstar has a “buy” rating and $230 fair value estimate for AMT stock, which closed at $212.29 on March 7.
Realty Income Corp. (O)
Realty Income is a retail REIT that owns, develops and manages U.S. retail real estate with a focus on single-tenant buildings. It is the largest triple-net REIT in the U.S., meaning tenants pay all property expenses, including real estate taxes, maintenance and building insurance. Realty Income has a 5.5% dividend yield and makes monthly dividend payments, making it an attractive income source. Analyst Kevin Brown says roughly 80% of Realty’s tenants are in retail, but most operate defensive businesses that are resistant to e-commerce competition. Morningstar has a “buy” rating and $75 fair value estimate for O stock, which closed at $58.48 on March 7.
Crown Castle Inc. (CCI)
Crown Castle International is a specialty REIT that owns and operates wireless communications towers. Crown Castle pays a 6.4% dividend, the highest on this list. In December, Bloomberg reported Crown Castle is nearing a deal to sell its fiber business to TPG for $8 billion. However, other outlets subsequently reported that Zayo Group has the leading bid for the fiber business with a more than $8 billion offer. Siampaus says he is neutral on the decision to offload the fiber business, but the $8 billion valuation is disappointing. Morningstar has a “buy” rating and $135 fair value estimate for CCI stock, which closed at $97.73 on March 7.
SBA Communications Corp. (SBAC)
SBA Communications is a specialized REIT that owns and operates a global wireless communications tower network. Siampaus says SBA has pursued strategic acquisitions that will support long-term revenue and profit growth, including its late 2024 acquisition of 7,000 towers from Millicom. He says SBA will now be the largest tower operator in Central America, and the acquired towers’ low tenancy creates opportunity for ongoing organic tower growth. Siampaus says SBA has also begun taking a more conservative approach to managing its balance sheet, reducing financial risk. Morningstar has a “buy” rating and $265 fair value estimate for SBAC stock, which closed at $223.73 on March 7.
Weyerhaeuser Co. (WY)
Weyerhaeuser is a specialty REIT that grows timber and produces forest products and pulp. Analyst Spencer Liberman says lower lumber and oriented strand board prices weighed on Weyerhaeuser’s wood product sales in late 2024, but there are signs the pricing environment could improve in 2025. Liberman says Lumber prices will benefit from production curtailments in both the U.S. and Canada, which should help balance an oversupplied market. In addition to better lumber products, Liberman projects growth in single-family construction will boost lumber demand. Morningstar has a “buy” rating and $35 fair value estimate for WY stock, which closed at $30.65 on March 7.
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Kimco Realty Corp. (KIM)
Kimco Realty is a retail REIT that is one of the largest U.S. owners and operators of neighborhood and community shopping centers. Brown says Kimco has significantly improved the quality of its portfolio in the past 15 years by focusing on “super-regional” centers, grocery-anchored centers, mixed-use urban centers and power centers. More than 80% of its revenue now comes from major metropolitan markets. Brown says the acquisitions of Weingarten Realty and RPT Realty added high-rent properties with exposure to grocery stores in attractive growth markets. Morningstar has a “buy” rating and $26.50 fair value estimate for KIM stock, which closed at $21.43 on March 7.
Healthpeak Properties Inc. (DOC)
Healthpeak Properties is a health care REIT that invests in life science and medical office properties and other health care facilities throughout the U.S. Healthpeak completed a merger with Physicians Realty Trust, and the combined company began trading under the ticker DOC in March 2024. Brown says the percentage of Americans age 80 or above should nearly double over the next decade. This shift should provide a tailwind for Healthpeak given the 80-plus population spends four times the amount the average household spends on health care. Morningstar has a “buy” rating and $30.50 fair value estimate for DOC stock, which closed at $20.51 on March 7.
BXP Inc. (BXP)
BXP is an office REIT that owns office buildings in Boston, New York City, Los Angeles, San Francisco and Washington. The REIT is down about 7% year to date, the worst performance on this list. Analyst Suryansh Sharma says BXP is well positioned for long-term growth in the life sciences sector. Sharma says BXP is focused on owning and developing properties in supply-constrained areas that achieve premium rental rates and maintain high occupancy rates throughout the ups and downs of the economic cycle. Morningstar has a “buy” rating and $91 fair value estimate for BXP stock, which closed at $69 on March 7.
Host Hotels & Resorts Inc. (HST)
Host Hotels & Resorts is a hotel and resort REIT that owns luxury hotels in North and South America. Brown says hotels have one of the highest betas in the real estate industry, exposing Host shares to the ups and downs of the U.S. economy. Despite the potential volatility, Brown says Host should benefit from an ongoing post-pandemic recovery in business travel, which could return to pre-pandemic levels by 2027. He anticipates cost-cutting measures will help Host generate sustainably higher operating margins. Morningstar has a “buy” rating and $23 fair value estimate for HST stock, which closed at $16.33 on March 7.
Federal Realty Investment Trust (FRT)
Federal Realty Investment Trust is a retail REIT that owns and manages community and neighborhood shopping centers. Brown says Federal Realty has composed its portfolio strategically, focusing on assets in submarkets with strong demand drivers. As a result, the locations of its properties have the highest average population density and median household income of any retail REIT portfolio. Brown says Federal Realty has consistently generated impressive same-store net operating income growth and double-digit re-leasing spreads. He says Federal Realty is positioned to maintain steady long-term growth. Morningstar has a “buy” rating and $142 fair value estimate for FRT stock, which closed at $101.31 on March 7.
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10 of the Best REITs to Buy for 2025 originally appeared on usnews.com
Update 03/10/25: This story was previously published at an earlier date and has been updated with new information.
