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 | Dividend yield | Implied change from Sept. 15 close |
| Prologis Inc. (ticker: PLD) | 3.5% | 9.4% |
| American Tower Corp. (AMT) | 3.5% | 19.5% |
| Realty Income (O) | 5.3% | 24.5% |
| Crown Castle Inc. (CCI) | 4.5% | 33.6% |
| Ventas Inc. (VTR) | 2.8% | 10.2% |
| Extra Space Storage Inc. (EXR) | 4.5% | 14.8% |
| AvalonBay Communities Inc. (AVB) | 3.6% | 20.3% |
| Regency Centers Corp. (REG) | 4.0% | 18.4% |
| Equity Residential (EQR) | 4.2% | 22.5% |
| SBA Communications Corp. (SBAC) | 2.2% | 33.8% |
Prologis Inc. (PLD)
Prologis is an industrial REIT that specializes in logistics real estate. Analyst Suryansh Sharma says Prologis’s valuable land bank has the potential for roughly $37 billion in new industrial projects in the years ahead. The company’s strategic capital segment also generates durable cash flows from unconsolidated co-investment ventures, including management and incentive fees. Sharma says Prologis management has prioritized maintaining a strong balance sheet and access to capital while it refreshes its portfolio. He is particularly bullish on Prologis’ Essentials business, including procurement activities. Morningstar has a “buy” rating and $125 fair value estimate for PLD stock, which closed at $114.27 on Sept. 15.
American Tower Corp. (AMT)
American Tower is a specialized REIT that operates the world’s largest independent portfolio of wireless communications and broadcast towers. Analyst Michael Hodel says tower REIT share prices have been under pressure since EchoStar announced sales of its spectrum to SpaceX and AT&T. These deals effectively ended EchoStar’s run as a U.S. wireless network operator, and EchoStar previously represented about 2% of American Tower’s revenue. Despite the bump in the road, Hodel says the tower business as a whole has a very bullish long-term trajectory. Morningstar has a “buy” rating and $230 price target for AMT stock, which closed at $192.50 on Sept. 15.
Realty Income (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 5.3% dividend yield and makes monthly dividend payments, making it an attractive income source. It even has the highest yield of any REIT on this list. Analyst Kevin Brown says Realty’s retail tenants have defensive businesses. Morningstar has a “buy” rating and $75 fair value estimate for O stock, which closed at $60.22 on Sept. 15.
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 4.5% yield after the cut. Hodel says EchoStar accounted for about 5% of Crown Castle’s revenue. Nevertheless, he says Crown Castle’s towers have generated significant cash flow growth in the past decade and remain well positioned in 2025. Morningstar has a “buy” rating and $125 fair value estimate for CCI stock, which closed at $93.57 on Sept. 15.
Ventas Inc. (VTR)
Ventas is a health care REIT that specializes in health care facilities, including specialty care facilities, housing for seniors, medical office buildings and hospitals. Including dividends, Ventas’ stock is up 20.4% year to date through Sept. 15, the best performance on this list. Brown says Ventas’ office and triple-net businesses have slowed, but its senior housing growth remains strong. He says the sheer amount of senior housing properties Ventas has acquired in 2025 is impressive in its own right, but it has also completed these deals at an impressively high cap rate. Morningstar has a “buy” rating and $77 price target for VTR stock, which closed at $69.85 on Sept. 15.
[Read: 7 Best Data Center Stocks, ETFs and REITs to Buy Now]
Extra Space Storage Inc. (EXR)
Extra Space Storage is one of the largest publicly traded self-storage REITs. Sharma says Extra Space’s storage facilities are located within a five-mile radius of densely populated urban areas that have high-income residents. Not only is Extra Space’s property portfolio one of the largest in the U.S., Sharma says the company is focused on improving the coverage, brand value, scale and operating efficiency of its storage businesses. In addition, Extra Space’s third-party management business has helped the company increase its data sophistication and expand its business. Morningstar has a “buy” rating and $165 fair value estimate for EXR stock, which closed at $143.73 on Sept. 15.
AvalonBay Communities Inc. (AVB)
AvalonBay Communities is a multifamily residential REIT that specializes in upscale apartment communities. The REIT is down roughly 10% in 2025, the worst performance on this list. However, Brown says AvalonBay’s underperformance is largely tied to general negative sentiment surrounding the entire REIT group and fears of a potential U.S. recession. In the long term, Brown says AvalonBay will generate same-store net operating income growth of around 3%. He says AvalonBay’s properties are located in top-tier, coastal urban and suburban markets that have favorable demographics. Morningstar has a “buy” rating and $232 fair value estimate for AVB stock, which closed at $192.84 on Sept. 15.
Regency Centers Corp. (REG)
Regency Centers is a retail REIT that specializes in shopping centers. Brown says Regency has reported impressive revenue growth in 2025 that has been supported by a combination of tenant recoveries, percentage rents and termination fee income. Once interest rates start to drop, Brown says Regency should generate same-store net operating income growth of about 3%. He says Regency’s properties are located in affluent markets with high population densities. More than 80% of its shopping centers are anchored by grocery stores, which Brown says serve as strong traffic draws. Morningstar has a “buy” rating and $84 fair value estimate for REG stock, which closed at $70.97 on Sept. 15.
Equity Residential (EQR)
Equity Residential is a multifamily residential REIT that owns and operates a diversified portfolio of apartment properties. Brown says Equity’s expense growth has been higher than its revenue growth, but re-leasing spreads have been improving in 2025. He says Equity Residential has reshaped its portfolio in the past decade, exiting southern and inland areas and focusing on core coastal markets such as Los Angeles, San Francisco and San Diego. Brown says these markets have attractive apartment demand demographics, such as income and job growth. Morningstar has a “buy” rating and $80 price target for EQR stock, which closed at $65.28 on Sept. 15.
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. Hodel says SBA has spent recent years expanding its tower portfolio in the U.S. while also looking for timely opportunities to increase its international presence. He says SBA’s management team has taken a particularly conservative approach to acquisitions, sacrificing higher growth to ensure it isn’t overpaying. Morningstar has a “buy” rating and $265 fair value estimate for SBAC stock, which closed at $198.05 on Sept. 15.
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10 of the Best REITs to Buy for 2025 originally appeared on usnews.com
Update 09/16/25: This story was published at an earlier date and has been updated with new information.
