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 many of them also pay sizable dividends. There are many different 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 | Forward Dividend Yield | Implied Upside* |
| Prologis Inc. (ticker: PLD) | 4.1% | 32.2% |
| American Tower Corp. (AMT) | 3.1% | 7.8% |
| Realty Income Corp. (O) | 5.8% | 41.7% |
| Crown Castle Inc. (CCI) | 6.2% | 37.5% |
| Equity Residential Properties Trust (EQR) | 4.3% | 28.0% |
| SBA Communications Corp. (SBAC) | 2.0% | 23.6% |
| Weyerhaeuser Co. (WY) | 3.2% | 37.4% |
| Kimco Realty Corp. (KIM) | 5.2% | 38.6% |
| Healthpeak Properties Inc. (DOC) | 6.6% | 67.6% |
| Regency Centers Corp. (REG) | 4.1% | 24.4% |
*As of April 7 close.
Prologis Inc. (PLD)
Prologis is an industrial REIT that specializes in logistics real estate. Analyst Suryansh Sharma says a moderation in new logistics property construction should support Prologis’ occupancy and rent growth. Sharma says the REIT’s portfolio is focused on locations with high population densities and markets with large labor pools, high barriers to entry and significant transportation infrastructure. He says Prologis’ strategic capital segment generates durable, long-term cash flows from property management services, asset management fees and other businesses. Sharma projects strong net operating income growth in coming years. Morningstar has a “buy” rating and $125 fair value estimate for PLD stock, which closed at $94.52 on April 7.
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 25.8% year to date, the best performance of any REIT on this list. Analyst Samuel Siampaus says carrier activity was lackluster in 2024, but international expansion and booming data center demand from artificial intelligence technology and cloud services should support growth in 2025 and beyond. Siampaus anticipates carriers will focus on densification and emphasize colocations, which will fuel organic tower growth. Morningstar has a “buy” rating and $230 fair value estimate for AMT stock, which closed at $213.39 on April 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 US, meaning tenants pay all property expenses, including real estate taxes, maintenance and building insurance. Realty Income has a 5.8% dividend yield and makes monthly dividend payments, making it an attractive income source. Analyst Kevin Brown says roughly 80% of Realty Income’s tenants are in retail, most operate defensive businesses that are resistant to economic downturns. Morningstar has a “buy” rating and $75 fair value estimate for O stock, which closed at $52.93 on April 7.
Crown Castle Inc. (CCI)
Crown Castle Inc. is a specialty REIT that owns and operates wireless communications towers. Crown Castle pays a 6.2% dividend, highest on this list. In March, Crown Castle agreed to sell its fiber business to Zayo Group for $8.5 billion. Siampaus says divesting the fiber business and focusing on brownfield investments is the right strategy for Crown Castle. He says the $8.5 billion price tag is somewhat disappointing, but the deal frees management up to focus on Crown Castle’s high-quality tower business. Morningstar has a “buy” rating and $135 fair value estimate for CCI stock, which closed at $98.21 on April 7.
[SEE: 7 Best Stagflation Stocks to Buy in 2025]
Equity Residential Properties Trust (EQR)
Equity Residential is a multi-family residential REIT that owns and operates a diversified portfolio of apartment properties. Brown says Equity’s portfolio is focused in urban, coastal markets, such as Los Angeles, San Diego and San Francisco. He says these markets have strong demand drivers that will deliver slow and steady growth, and Equity Residential’s buildings have high occupancy rates and rents. Trends such as job growth, decreasing home ownership, income growth and high costs of single-family housing will support apartment demand in Equity’s major markets. Morningstar has a “buy” rating and $80 fair value estimate for EQR stock, which closed at $62.52 on April 7.
SBA Communications Corp. (SBAC)
SBA Communications is a specialized REIT that owns and operates a global wireless communications tower network. Siampaus says SBA is managing its balance sheet conservatively while simultaneously pursuing growth opportunities by acquiring additional towers. He anticipates a focus on colocations will help SBA generate 6% annual organic revenue growth through at least 2028. Demand for 5G-capable equipment isn’t going away, and Siampaus says SBA’s position as the largest tower operator in Central America allows it to benefit from rapid growth in data consumption in the region. Morningstar has a “buy” rating and $265 fair value estimate for SBAC stock, which closed at $214.43 on April 7.
Weyerhaeuser Co. (WY)
Weyerhaeuser is a specialty REIT that grows timber and produces and sells forest products and pulp. Analyst Spencer Liberman says low-oriented strand board and lumber prices have weighed on Weyerhaeuser’s wood products business in recent quarters, but he is optimistic the lumber market will improve in 2025. Looking ahead, Liberman says Weyerhaeuser’s stock upside will likely be tied closely to the health of the U.S. housing market and the overall economy. Weyerhaeuser’s expanding mill capacity in the U.S. Southeast reduces its exposure to tariffs. Morningstar has a “buy” rating and $35 fair value estimate for WY stock, which closed at $25.48 on April 7.
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. The REIT is down more than 16% year to date, the worst performance on this list. Brown says Kimco’s shopping centers are geographically diversified, high quality assets such as superregional centers, grocery-anchored centers, power centers and mixed-use urban centers. He says Kimco has rebuilt its portfolio in the past 15 years, selling off low-quality properties and reinvesting the proceeds in high-yielding development and redevelopment projects. Morningstar has a “buy” rating and $26.50 fair value estimate for KIM stock, which closed at $19.12 on April 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 pays a 6.6% dividend, highest on this list. Brown says the aging baby boomer generation will provide significant tailwinds for health care facilities operators. Americans over the age of 80 spend more than four times as much per capita on health care than the general population, and Brown estimates this demographic will more than double in size in the next decade. Morningstar has a “buy” rating and $30.50 fair value estimate for DOC stock, which closed at $18.20 on April 7.
Regency Centers Corp. (REG)
Regency Centers is a retail REIT that specializes in shopping centers. Brown says Regency’s properties are focused in attractive, affluent, population-dense areas. More than 80% of the company’s centers are anchored by grocery stores, which account for more than 20% of Regency’s annual base rent. Brown says these grocery anchors operate healthy businesses and help Regency’s centers generate foot traffic and produce sales per square foot well above the national average. Many of Regency’s other tenants operate service-oriented businesses that are insulated from e-commerce competition. Morningstar has a “buy” rating and $84 fair value estimate for REG stock, which closed at $67.54 on April 7.
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10 of the Best REITs to Buy for 2025 originally appeared on usnews.com
Update 04/08/25: This story was previously published at an earlier date and has been updated with new information.
