Real estate investments can be an excellent way to earn returns, generate cash flow, hedge against inflation and diversify an investment portfolio, but buying physical properties can be costly, difficult and risky.
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Instead, you 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 from their earnings. 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* |
| Prologis Inc. (ticker: PLD) | 3.8% |
| Realty Income Corp. (O) | 5.6% |
| Crown Castle Inc. (CCI) | 4.0% |
| Extra Space Storage Inc. (EXR) | 4.7% |
| Ventas Inc. (VTR) | 2.7% |
| AvalonBay Communities Inc. (AVB) | 3.7% |
| Equity Residential (EQR) | 4.3% |
| SBA Communications Corp. (SBAC) | 2.0% |
| Weyerhaeuser Co. (WY) | 3.2% |
| Kimco Realty Corp. (KIM) | 4.6% |
*As of Aug. 5 close.
Prologis Inc. (PLD)
Prologis is an industrial REIT that specializes in logistics real estate. Analyst Suryansh Sharma says Prologis’ industrial properties are located in strategic markets that have high barriers to entry for competitors, as well as attractive characteristics such as growing consumption, high population densities, large labor pools and significant transportation infrastructure. Sharma estimates the company’s portfolio can support $37 billion in new industrial projects in the years ahead. He says Prologis’ strategic capital segment also generates cash flows via asset and property management fees. Morningstar has a “buy” rating and $125 fair value estimate for PLD stock, which closed at $107.04 on Aug. 5.
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 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. Analyst Kevin Brown says Realty’s retail tenants are relatively well positioned. Morningstar has a “buy” rating and $75 fair value estimate for O stock, which closed at $57.20 on Aug. 5.
Crown Castle Inc. (CCI)
Crown Castle is a specialty REIT that owns and operates wireless communications towers. In March, Crown Castle agreed to sell its fiber business to Zayo Group for $8.5 billion. Two months later, the company cut its dividend by 32%, but Crown Castle still has an attractive 4% yield after the cut. In addition, the stock is up about 15% year to date, the best performance on this list. Analyst Samuel Siampaus says the fiber divestment allows Crown Castle to focus on its high-quality tower portfolio. Morningstar has a “buy” rating and a $135 fair value estimate for CCI stock, which closed at $104.94 on Aug. 5.
Extra Space Storage Inc. (EXR)
Extra Space Storage is one of the largest publicly traded self-storage REITs. Sharma says Extra Space prioritizes creating brand value and improving operations efficiency at its storage facilities. Not only is the REIT’s portfolio one of the largest in the U.S., Sharma says its facilities are typically located within a three-to-five mile radius of high-income, densely populated urban centers. He says the company’s third-party management business has also been an excellent revenue source and has helped Extra Space improve data sophistication without requiring significant capital investment. Morningstar has a “buy” rating and $165 fair value estimate for EXR stock, which closed at $138.61 on Aug. 5.
Ventas Inc. (VTR)
Ventas is a health care REIT that specializes in specialty care facilities, housing for seniors, medical office buildings and hospitals. Brown says Ventas has reported a slowdown in same-store sales growth, but the company recently maintained its full-year guidance, reassuring investors. He says investors are overly concerned about the negative impact the Donald Trump administration’s cuts to research funding will have on life sciences. Brown says Ventas shares are undervalued given life sciences accounts for only about 8% of its net operating income. Morningstar has a “buy” rating and $75 fair value estimate for VTR stock, which closed at $68.73 on Aug. 5.
AvalonBay Communities Inc. (AVB)
AvalonBay Communities is a multifamily residential REIT that specializes in upscale apartment communities. The REIT is down about 15% year to date, the worst performance on this list. Nevertheless, Brown says AvalonBay’s properties are located in attractive urban and suburban, coastal markets such as New England, New York and New Jersey, that have strong rent growth and allow the company to maintain high occupancy rates. Brown says factors in these markets such as income growth, job growth, high housing prices and falling homeownership rates support apartment demand. Morningstar has a “buy” rating and $232 fair value estimate for AVB stock, which closed at $186.31 on Aug. 5.
Equity Residential (EQR)
Equity Residential is a multifamily residential REIT that owns and operates a diversified portfolio of apartment properties. Brown says Equity has divested many of its inland properties and focused on high-growth core markets such as Los Angeles, San Francisco and San Diego. He says these markets have attractive characteristics for apartment investors, including attractive urban centers, younger residents and high single-family housing prices. Brown says Equity has a proven track record of selling underperforming properties and reinvesting the proceeds in acquisitions and property development. Morningstar has a “buy” rating and $80 fair value estimate for EQR stock, which closed at $63.41 on Aug. 5.
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 for $975 million, a deal which made SBA the largest tower operator in Central America. Siampaus says SBA’s restructuring efforts have positioned the company for revenue and earnings growth over the long term. He says rapid data consumption growth in Central America will be a tailwind for colocation demand, and SBA should continue to benefit from domestic and international carrier network upgrades. Morningstar has a “buy” rating and $265 fair value estimate for SBAC stock, which closed at $219.16 on Aug. 5.
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 upside for Weyerhaeuser’s stock is closely tied to the health of the U.S. and Canadian economies, and the company has historically witnessed large swings in profits throughout housing market cycles. Liberman says Weyerhaeuser’s timberland portfolio also provides additional revenue streams. Morningstar has a “buy” rating and $35 fair value estimate for WY stock, which closed at $25.80 on Aug. 5.
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’s diversified portfolio includes a wide range of high-quality shopping centers, including superregional centers, grocery-anchored centers, power centers and mixed-use urban centers. While many of Kimco’s tenants are facing stiff competition from online retailers, Brown says tenants such as restaurants, grocery stores and serviced-based businesses are relatively insulated from e-commerce threats. He says Kimco will continue to improve its tenant mix. Morningstar has a “buy” rating and $26.50 fair value estimate for KIM stock, which closed at $21.29 on Aug. 5.
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10 of the Best REITs to Buy for 2025 originally appeared on usnews.com
Update 08/06/25: This story was previously published at an earlier date and has been updated with new information.
