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. 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.
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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 |
| American Tower Corp. (ticker: AMT) | 3.1% |
| Prologis Inc. (PLD) | 3.8% |
| Ventas Inc. (VTR) | 3.0% |
| Realty Income Corp. (O) | 5.6% |
| Crown Castle Inc. (CCI) | 4.1% |
| Extra Space Storage Inc. (EXR) | 4.4% |
| AvalonBay Communities Inc. (AVB) | 3.4% |
| SBA Communications Corp. (SBAC) | 1.9% |
| Equity Residential (EQR) | 4.1% |
| Weyerhaeuser Co. (WY) | 3.3% |
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 22.9% year to date, the best performance of any REIT on this list. Analyst Samuel Siampaus says American Tower’s well-diversified portfolio is performing well, led by Africa and Europe. Sprint churn in the U.S. and carrier consolidation in Latin America remain headwinds for now, but Siampaus says improving carrier activity in the U.S. and Europe will boost same-tower leasing revenue. Morningstar has a “buy” rating and $243 fair value estimate for AMT stock, which closed at $221.75 on July 3.
Prologis Inc. (PLD)
Prologis is an industrial REIT that specializes in logistics real estate. Analyst Suryansh Sharma says Prologis’ industrial properties are located in markets that have growing consumption, large labor pools and extensive transportation infrastructure. These areas often have high barriers to entry for potential competitors. Sharma says the Prologis portfolio has potential for a whopping $37 billion in new industrial projects in the years ahead. At the same time, he says the REIT’s strategic capital business generates durable, long-term cash flows from management fees and other services. Morningstar has a “buy” rating and $125 fair value estimate for PLD stock, which closed at $108.02 on July 3.
Ventas Inc. (VTR)
Ventas specializes in health care facilities, including specialty care facilities, housing for seniors, medical office buildings and hospitals. Analyst Kevin Brown says Ventas’ same-store net operating income growth has decelerated in recent quarters, but not as badly as he had feared. In addition, management recently reiterated its full-year 2025 guidance for between $3.35 and $3.46 per share in funds from operation. Brown says Ventas’ valuation reflects an overly pessimistic outlook for the Trump administration’s negative impact on research funding. Morningstar has a “buy” rating and $75 fair value estimate for VTR stock, which closed at $62.93 on July 3.
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 5.6% dividend yield and makes monthly dividend payments
, making it an attractive income source. In fact, it has the highest yield of any REIT on this list. Brown says Realty’s retail clients are insulated from e-commerce competition. Morningstar has a “buy” rating and $75 fair value estimate for O stock, which closed at $57.68 on July 3.
Crown Castle Inc. (CCI)
Crown Castle is a specialty REIT that owns and operates wireless communications towers. In March, the company agreed to sell its fiber business for $8.5 billion. Two months later, Crown Castle cut its dividend by 32%, but it still has an attractive 4.1% yield after the cut. Siampaus says the fiber business deal will allow Crown Castle management to focus on operating its high-quality tower business, which he describes as “fantastic.” However, investors were likely underwhelmed by the deal’s price tag. Morningstar has a “buy” rating and $135 fair value estimate for CCI stock, which closed at $102.92 on July 3.
[Read: 15 Best Dividend Stocks to Buy Now]
Extra Space Storage Inc. (EXR)
Extra Space Storage is one of the largest publicly traded self-storage REITs. Sharma says the self-storage market will continue to be difficult in 2025, but Extra Space also operates lucrative third-party management and insurance businesses as well. In fact, Extra Space’s third-party management business is the largest in the U.S., and Sharma says it has allowed the company to expand its scale and data analytics with minimal capital investment. The self-storage industry has also historically been recession-resistant given difficult life events often boost demand for storage. Morningstar has a “buy” rating and $165 fair value estimate for EXR stock, which closed at $152.88 on July 3.
AvalonBay Communities Inc. (AVB)
AvalonBay Communities is a multi-family residential REIT that specializes in upscale apartment communities. The REIT is down 6.3% year to date, the worst performance on this list. Nevertheless, Brown says AvalonBay’s development pipeline and its existing portfolio of properties should fuel slow-but-steady growth in coming years. He says the company’s properties are located in coastal, urban markets that have favorable demographics and that allow for rent growth and high occupancy rates. Brown says these areas have income growth, job growth and decreasing homeownership rates, supporting demand for apartments. Morningstar has a “buy” rating and $232 fair value estimate for AVB stock, which closed at $202.57 on July 3.
SBA Communications Corp. (SBAC)
SBA Communications is a specialized REIT that owns and operates a global wireless communications tower network. In 2024, SBA acquired 7,000 towers from Millicom International Cellular SA (TIGO) for $975 million, a deal that made SBA the largest tower operator in Central America. Siampaus projects 6% average organic revenue growth for SBA through 2028, noting that growth will be driven largely by colocations. Siampaus says the Millicom deal is the latest indication of SBA’s willingness to pursue opportunities to boost long-term revenue and profit growth. Morningstar has a “buy” rating and $265 fair value estimate for SBAC stock, which closed at $233.93 on July 3.
Equity Residential (EQR)
Equity Residential is a multi-family residential REIT that owns and operates a diversified portfolio of apartment properties. Brown says Equity Residential has done an excellent job of restructuring its portfolio in the past decade, selling underperforming properties in inland and southern markets and focusing on high-growth core markets such as Boston, Seattle, San Diego, Los Angeles and San Francisco. He says these markets have exactly the types of traits apartment REIT investors are looking for, including income and job growth, high housing prices, and falling homeownership rates. Morningstar has a “buy” rating and $80 fair value estimate for EQR stock, which closed at $66.88 on July 3.
Weyerhaeuser Co. (WY)
Weyerhaeuser is a specialty REIT that grows timber and produces and sells forest products and pulp. The company’s wood products, including structural lumber, oriented strand board and engineered wood products, are sold largely to construction and repair and remodel end markets. Analyst Spencer Liberman says Weyerhaeuser’s business is closely tied to the health of the North American housing market, particularly the U.S. The company’s profitability is also highly correlated to the health of the overall economies in the U.S. and Canada. Morningstar has a “buy” rating and $35 fair value estimate for WY stock, which closed at $26.43 on July 3.
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10 of the Best REITs to Buy For 2025 originally appeared on usnews.com
Update 07/07/25: This story was previously published at an earlier date and has been updated with new information.
