When stock market volatility is high and uncertainty dominates Wall Street, investors often turn to dependable, income-producing securities. It’s called a flight to safety, and the phenomenon can elevate the prospects of investments like short-term government bonds, precious metals, utilities and real estate investment trusts, commonly called REITs.
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REITs are specialty companies that invest in income-producing commercial real estate or interest-bearing financial instruments tied to real estate. Like all securities, REITs fluctuate up and down based on the market, the economy, and the interest rate environment, but during market turmoil, high-quality REITs are generally seen as stable investments with a quantifiable inherent value. That’s because REITs are ultimately backed by actual, physical real estate, which is a tangible asset with real potential for income growth and capital appreciation.
Most REITs specialize in a single class of real estate. There are office REITs that rent space to businesses, residential REITs that own and operate multifamily apartment buildings, digital infrastructure REITs that invest in data centers, retail REITs that run malls and shopping centers, and several others.
Some of the most popular real estate stocks — especially during volatile market environments — are industrial REITs, which rent space and facilities to business and industry. Industrial REITs can own warehouses, trucking terminals, distribution facilities and more. Most industrial REITs sign long-term leases with their tenants, meaning rental income is locked in and not directly susceptible to market swings or business or consumer sentiment. That’s important because REITs are required to distribute at least 90% of their taxable income back to shareholders as an income dividend. In other words, REITs can offer investors a reliable income stream while a bad market is finding its footing.
If you’re attracted to the general stability, reliable income and potential for growth that industrial REITs can provide, you’ll want to review the following list carefully. It contains some of the most well-regarded, best-run industrial REITs on the market. No one knows what stocks will do in the short run, but, if you’re looking to deploy capital in an unpredictable market, consider adding one or more of these companies to your portfolio.
| Stocks | Forward Dividend Yield* | Market Capitalization |
| Lineage Inc. (ticker: LINE) | 2.6% | $12.3 billion |
| Americold Realty Trust Inc. (COLD) | 4.8% | $5 billion |
| EastGroup Properties Inc. (EGP) | 3.5% | $7.4 billion |
| Terreno Realty Corp. (TRNO) | 3.5% | $5.2 billion |
| LXP Industrial Trust (LXP) | 6.7% | $2.1 billion |
| First Industrial Realty Trust Inc. (FR) | 3.7% | $5.8 billion |
| STAG Industrial Inc. (STAG) | 4.5% | $5.7 billion |
*As of April 8 close.
Lineage Inc. (LINE)
The first and second industrial REITs on today’s list are both temperature-controlled — that is to say, refrigerated — warehouse operators. Refrigerated warehouses are featured today for a straightforward reason: they are principally used to store and distribute food and medicine, two of the most defensive sectors in this or any economy.
With a market capitalization of $12.4 billion, Lineage is the largest temperature-controlled warehouse REIT in the world. The company owns and operates almost 500 centrally located, large-scale warehouses with over 85 million square feet of rentable warehouse space in the U.S., throughout North America and in Europe and Asia.
Due to its preeminence in the industry and its exceptionally large footprint, Lineage is an important part of our nation’s — and the world’s — food, beverage and pharmaceutical supply chain.
The stock boasts a forward dividend yield of 2.6%.
Americold Realty Trust Inc. (COLD)
The next REIT on the list is another temperature-controlled logistics REIT and it appears here for many of the same reasons as LINE, the previous entrant on this list.
Americold has a healthy market cap of $5 billion and is currently distributing a forward dividend yield of 4.8% to shareholders. This refrigerated warehouse company is second only to Lineage in size and scope within its specialized industry. It makes an excellent stand-alone holding but, due to the differences in locations and coverage areas, complements Lineage nicely as part of a portfolio.
Americold’s tenants are primarily in the food industry but pharmaceutical companies and chemical companies also make up a good percentage of its customers. The company’s client base is well diversified, adding another layer of defensiveness to the stock.
Raymond James rates the stock “outperform.” Truist Securities and BofA Securities both have a “buy” on the name.
EastGroup Properties Inc. (EGP)
The $7.4 billion industrial REIT EastGroup Properties caught the attention of Wall Street in August when it boosted its annual dividend by more than 10% from $5.08 a share to $5.60 a share. Based on the stock’s April 8 close of $147.83, that’s a current forward dividend yield of 3.5%.
EastGroup is a component stock of both the S&P Mid-Cap 400 Index and the Russell 2000 Index. The company owns top-tier warehouses and distribution centers in the fast-growing Sunbelt Region of the U.S, especially Florida, Texas, Arizona, North Carolina and parts of California. EastGroup facilities are located in logistical hubs near highways, train stations, ports and airports. It principally serves the high-demand, fast-growing e-commerce industry and has become a critical part of America’s quick delivery consumer products supply chain.
The company’s business plan involves acquiring and developing warehouse properties in its niche of between 25,000 and 100,000 square feet. According to recent company reports, EastGroup has an equity interest in more than 63 million square feet of rentable space.
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Terreno Realty Corp. (TRNO)
Terreno is an industrial REIT that’s well regarded by its shareholders and tenants. The company, which owns prime industrial real estate on the East and West coasts of the U.S., has a market cap of $5.2 billion.
Terreno is a very interesting real estate company. Unlike most REITs, it owns and rents out both indoor and outdoor space to its industrial clients. Roughly three-quarters of its properties are modern warehouses designed to serve online and brick-and-mortar retailers. The rest of its facilities are in a category called improved land parcels, which are large tracts of fenced-in land that they rent out as long-term, outdoor storage space.
On Feb. 21, Goldman Sachs upgraded the stock from “neutral” to “buy” based on projected revenue and earnings growth. The stock has a current forward dividend yield of 3.5%.
LXP Industrial Trust (LXP)
LXP Industrial could be a profitable addition to your portfolio over the long run. LXP is a leader in the industrial real estate space that’s well-positioned to benefit from the impressive growth of logistics and e-commerce in America’s Sunbelt Region.
The company owns an impressive portfolio of updated, class-A warehouses and distribution centers in Texas, Florida and other southeastern States. The company’s past and future success is tied to the explosive growth of online shopping, which, despite the market’s ups and downs, shows no signs of slowing down over the long run.
The company’s fourth quarter 2024 financial reports impressed REIT investors. For that year, LXP collected rent on over 4.5 million square feet of space and logged a 46% base rent growth. They also reported an occupancy rate of over 97%.
The stock currently pays an annual forward dividend of 53 cents a share. That works out to a current yield of 6.7%.
First Industrial Realty Trust Inc. (FR)
The trucking industry has been an important part of our country’s supply chain for as long as we’ve been an industrial nation. First Industrial is a REIT that’s laser-focused on trucking. Specifically, trucking terminals, distribution centers and logistics-focused warehouse properties. This company’s watchwords are quality and location, meaning they choose prime geographic locations for their facilities and invest heavily in modernization and technology.
Since the end of the COVID-19 pandemic, First Industrial has concentrated almost exclusively on the coastal areas of the country that it believes are most prone supply chain disruptions. The purpose of that strategy is to be located precisely where it is most needed, and to keep the company relevant in good times and bad.
First Industrial is followed by about 11 Wall Street equity analysts. The consensus among those professionals is that the company will generate about $718 million in revenue in fiscal 2025 and grow that figure 7.5% to $772 million for 2026.
Based on its $43.32 closing price on April 8, the stock has a current yield of 3.7%.
STAG Industrial Inc. (STAG)
Stag Industrial is a large, $5.7 billion REIT with an interest in more than 590 industrial facilities spread across 41 U.S. states. The company controls over 116 million square feet of space. The firm’s portfolio is made up of warehouse and distribution facilities, light manufacturing and flex office space.
What makes this stock compelling as an investment right now is the fact that it has 11 development projects in the works that are not yet included in its building count. In other words, tens of thousands of square feet of rentable space is going to be brought on line over the next few years. When these projects are completed and leased out, STAG will be exceptionally diversified. No tenant will account for more than 3% of base rental revenue and no single industrial sector will exceed 11% of that revenue. That makes STAG a sound bet in a tumultuous time.
Both Raymond James and Evercore ISI Group maintain an “outperform” rating on this mid-cap stock. STAG has an annual forward dividend yield of 4.5%.
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7 Best Industrial REITs to Buy Right Now originally appeared on usnews.com
Update 04/09/25: This story was published at an earlier date and has been updated with new information.
