Real estate investment trusts, or REITs, are a popular choice for income-focused investors. But the level of yield you receive can vary widely depending on the types of properties the REIT owns.
“REITs are companies that own, operate or finance income-generating real estate properties,” says Rohan Reddy, head of international business development and corporate strategy at Global X ETFs. “They are required to distribute at least 90% of their taxable income to shareholders, which makes them a popular choice for investors seeking regular income.”
For example, the iShares Core U.S. REIT ETF (ticker: USRT), which holds a broad mix of commercial and residential real estate, currently pays a 30-day SEC yield of 3.2%. That figure can be used as a baseline for the broader asset class.
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“Overall, REITs are currently paying a yield that is nearly three times the dividend on the S&P 500 — plus the potential for capital appreciation,” says Abigail McCarthy, senior vice president of investment affairs at Nareit.
However, investors who focus on growth-oriented real estate segments may see lower yields. The Global X Data Center & Digital Infrastructure ETF (DTCR), for instance, holds companies that own and operate digital storage, server farms and other tech-driven infrastructure. These businesses reinvest heavily in expansion. As a result, DTCR yields just 1.8%, reflecting a focus on capital appreciation over income.
On the other hand, reaching for maximum income can lead investors to funds like the VanEck Mortgage REIT Income ETF (MORT), which currently yields 12.7%. These REITs invest in mortgage-backed securities and come with high volatility, limited capital appreciation and greater sensitivity to interest rate shifts.
It doesn’t have to be all or nothing, though. Instead of outsourcing entirely to ETFs, investors can use online screeners or examine ETF holdings to assemble their own basket of high-yield REITs.
Just keep in mind that a high yield is not a guarantee of strong long-term returns. In some cases, it may signal distress. “Investors need to be very careful with high-yield REITs,” says Samuel Adams, CEO and co-founder of Vert Asset Management. “Some could be considered high-yield simply because their stock price has fallen so much that the dividend yield looks high.”
Before investing in a high-yield REIT, check whether its distributions are supported by adjusted funds from operations (AFFO), a key cash flow metric in the REIT world. Ideally, AFFO should fully cover the dividend and trend upward over time.
Also consider operational and financial health. Look for REITs with above-average occupancy rates within their property sector, sustainable debt-to-asset ratios and diversified tenant bases. Relying too heavily on a single major lessee can increase risk if that tenant runs into trouble.
Here are eight of the best high-yield REITs to buy today:
| REIT | Dividend yield |
| Realty Income Corp. (O) | 5.6% |
| Easterly Government Properties Inc. (DEA) | 7.9% |
| Blackstone Mortgage Trust Inc. (BXMT) | 9.6% |
| EPR Properties (EPR) | 6.2% |
| Gaming and Leisure Properties Inc. (GLPI) | 6.7% |
| Apple Hospitality REIT Inc. (APLE) | 7.6% |
| Omega Healthcare Investors Inc. (OHI) | 6.9% |
| SL Green Realty Corp. (SLG) | 5.1% |
Realty Income Corp. (O)
Realty Income is one of the few REITs included in the S&P 500 Dividend Aristocrats Index, having raised its dividend annually for more than 25 consecutive years. That consistency is notable, especially given that many REITs were forced to cut or suspend payouts during the 2008 financial crisis and again in 2020 due to COVID-19 shutdowns. Realty Income kept hiking its distribution, and now pays a 5.6% yield.
The company has a highly diversified tenant base across durable, necessity-driven retail industries such as grocery stores, convenience stores and pharmacies. It maintains a strong 98.5% occupancy rate and a sustainable payout ratio of 76.5% based on AFFO. Realty Income is also one of the few U.S. companies to pay dividends monthly rather than quarterly, a feature appreciated by many income-focused investors.
Easterly Government Properties Inc. (DEA)
“Investors may be able to achieve the best of both worlds by selectively prioritizing defensive segments of the real estate market, which are both resistant to a slowing economic environment while still maintaining exposure to the potential tailwinds that often come with falling rates,” Reddy says. One of the most stable types of tenants in commercial real estate is the U.S. government.
Easterly Government Properties focuses exclusively on leasing mission-critical facilities to federal agencies, primarily through the U.S. General Services Administration (GSA). While recent budget-cutting efforts from the newly established Department of Government Efficiency (DOGE) have raised concerns, the REIT’s AFFO remains stable, supported by a 100% occupancy rate. DEA currently pays a 7.9% yield.
Blackstone Mortgage Trust Inc. (BXMT)
President Donald Trump has been publicly pressuring Federal Reserve Chair Jerome Powell to cut interest rates. “Given the leveraged business models of real estate, REITs are poised to benefit from continued rate cuts from the Federal Reserve,” Reddy says. “The lower borrowing costs that accompany falling interest rates and easing inflation pressures both serve as strong catalysts for real estate returns.”
Mortgage REITs like BXMT are among the most responsive to interest rate changes. Unlike equity REITs, they don’t own physical property. Instead, they operate as highly leveraged spread trades, borrowing at short-term rates to invest in higher-yielding mortgage-backed securities. When the cost of borrowing drops, the spread tends to widen, boosting profitability. BXMT currently offers a high yield of 9.6%.
EPR Properties (EPR)
The COVID-19 pandemic created a wave of high-yield REITs — not because companies were increasing payouts, but because share prices fell so sharply that yields spiked. Many REITs were forced to cut or suspend dividends entirely during the crisis. Now, more than four years later, some of these REITs have fully recovered or even surpassed pre-pandemic price levels, but their yields still remain appealing.
EPR Properties is a good example. Its portfolio includes movie theaters, golf driving ranges, ski resorts, waterparks, casinos and other travel- and tourism-driven destinations. This makes it highly cyclical and dependent on consumer discretionary spending. Despite that, EPR maintains a strong 99.3% occupancy rate and a sustainable payout ratio of 71.7% based on AFFO. The REIT currently yields 6.2%.
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Gaming and Leisure Properties Inc. (GLPI)
While EPR Properties focuses on family-friendly entertainment, GLPI takes a different approach: Its portfolio is centered entirely on gambling. The company owns and leases 68 casino and resort properties across 20 states, covering 6,455 acres and offering more than 15,100 hotel rooms. Like other leisure-focused REITs, GLPI took a sharp hit during the COVID-19 pandemic.
However, occupancy has since recovered as lockdowns and travel restrictions were lifted, and the REIT’s AFFO has remained steady. GLPI does not operate the casinos itself; instead, it leases the properties to gaming operators and positions itself as a tollbooth on vice, earning rental income regardless of who runs the business. The REIT currently yields 6.7%.
Apple Hospitality REIT Inc. (APLE)
Major hotel operators like Marriott International Inc. (MAR), Hilton Worldwide Holdings Inc. (HLT) and Hyatt Hotels Corp. (H) generally don’t own the properties they operate. This capital-light model keeps their balance sheets lean and allows them to focus on branding, marketing and operations rather than property management. Instead, they lease their facilities from hospitality REITs.
Buying Apple Hospitality REIT gives you exposure to all three hotel brands through its portfolio of upscale, service-focused hotels. As the sector continues to recover from COVID-era disruptions, APLE’s occupancy remains on the lower side at 71.1%. Still, the REIT has kept AFFO steady, reduced its debt load and maintained a sustainable dividend payout ratio of 60.4%, supporting a current yield of 7.6%.
Omega Healthcare Investors Inc. (OHI)
“Long-term-care facilities comprise a historically stable sector of the real estate market, which has held up well in the backdrop of market volatility,” Reddy says. “This can be attributed to increased investor interest in alternative asset classes and strong secular tailwinds from an aging population.” As with travel and leisure REITs, health care REITs were impacted by COVID-19 but still pay higher yields as a result.
“Omega Healthcare Investors’ long-term, triple-net lease structures have helped shield it from some of the negative forces impacting the real estate sector,” Reddy says. “Built-in annual rent escalators on its agreements have helped its leases keep pace with inflation.” Investors can currently expect a 6.9% yield, although occupancy remains low at 81.8% and one tenant makes up 10.1% of revenues for OHI.
SL Green Realty Corp. (SLG)
Office REITs were hit especially hard during the COVID-19 pandemic, as work-from-home mandates and quarantine policies caused occupancy rates to plummet. But with workplace culture shifting back toward in-person, the sector may be poised for recovery. Leaders like JPMorgan Chase & Co. (JPM) CEO Jamie Dimon have been vocal proponents of the return to office, a trend that could benefit office landlords.
SL Green is one of Manhattan’s largest commercial property owners and remains in recovery mode. Its occupancy rate sits at 89.1%, still meaningfully below pre-pandemic levels. However, the company has made meaningful progress in reducing leverage and maintaining a sustainable dividend. Its payout ratio stands at just 44.7% of AFFO, supporting an above-average current yield of 5.1%.
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8 Best High-Yield REITs to Buy originally appeared on usnews.com
