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 upside* |
| American Tower Corp. (ticker: AMT) | 3.8% | 28.2% |
| Realty Income Corp. (O) | 5.6% | 29.5% |
| Crown Castle Inc. (CCI) | 4.7% | 36.9% |
| Extra Space Storage Inc. (EXR) | 4.8% | 22.4% |
| Ventas Inc. (VTR) | 2.6% | 8.9% |
| AvalonBay Communities Inc. (AVB) | 4.0% | 32.8% |
| Regency Centers Corp. (REG) | 4.4% | 21.1% |
| Equity Residential (EQR) | 4.6% | 32.6% |
| SBA Communications Corp. (SBAC) | 2.3% | 38.6% |
| Invitation Homes Inc. (INVH) | 4.1% | 44.3% |
*From Oct. 30 close.
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 American Tower and other leading U.S. tower REITs recently took a hit after EchoStar divested spectrum to SpaceX. However, Hodel says EchoStar accounted for just 2% of American Tower’s tower revenue, and the emergence of a legitimate fourth national wireless carrier was always a long shot. Meanwhile, Hodel says American Tower management has been capitalizing on secular growth in mobile data demand. Morningstar has a “buy” rating and $230 fair value estimate for AMT stock, which closed at $179.45 on Oct. 30.
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. It even has the highest yield of any REIT on this list. Analyst Kevin Brown says Realty’s retail tenants operate defensive businesses. Morningstar has a “buy” rating and $75 fair value estimate for O stock, which closed at $57.91 on Oct. 30.
Crown Castle Inc. (CCI)
Crown Castle International 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 4.7% yield after the cut. Hodel says Crown Castle’s top priorities are utilizing cash flow to fund its dividend while investing in systems to improve efficiency, better serve carriers and maximize use of its tower assets. Morningstar has a “buy” rating and $125 fair value estimate for CCI stock, which closed at $91.32 on Oct. 30.
Extra Space Storage Inc. (EXR)
Extra Space Storage is one of the largest publicly traded self-storage REITs. Analyst Suryansh Sharma says Extra Space’s third-party management business is the largest among self-storage companies and it has allowed Extra Space to improve its data sophistication and scale without requiring significant capital investment. Sharma says Extra Space’s storage facilities are in prime locations within three to five miles from high-income urban centers that are densely populated. He says self-storage has been a recession-resistant business in the past given difficult life events support storage demand. Morningstar has a “buy” rating and $165 fair value estimate for EXR stock, which closed at $134.80 on Oct. 30.
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 29% year to date, the best performance on this list. Brown says Ventas is well positioned to benefit from an aging baby boomer generation. He says Americans who are 80 or older spend more than four times as much money on health care as the general population, and the number of Americans over 80 is expected to nearly double in the next decade. Morningstar has a “buy” rating and $81 fair value estimate for VTR stock, which closed at $74.36 on Oct. 30.
[Read: 7 Best Data Center Stocks, ETFs and REITs to Buy Now]
AvalonBay Communities Inc. (AVB)
AvalonBay Communities is a multi-family residential REIT that specializes in upscale apartment communities. The REIT is down more than 18% in 2025, the worst performance on this list. However, Brown says AvalonBay’s property portfolio consists of high-quality buildings in attractive coastal, urban and suburban markets that have favorable demographics that support strong rent growth and high occupancy rates, such as New York, New Jersey and New England. He says these markets have the type of income growth, job growth and falling homeownership rates that stimulate apartment demand. Morningstar has a “buy” rating and $232 fair value estimate for AVB stock, which closed at $174.71 on Oct. 30.
Regency Centers Corp. (REG)
Regency Centers is a retail REIT that specializes in shopping centers. Brown says Regency has high-quality properties located in affluent, population-dense markets. Furthermore, more than 80% of Regency’s shopping centers are anchored by grocery stores that account for about 20% of total annual base rent. Brown says these grocery anchors have low occupancy cost and high sales per square foot, and they also draw foot traffic to other stores. Many of Regency’s additional retail tenants operate service-oriented businesses that are insulated from online sales competition. Morningstar has a “buy” rating and $84 fair value estimate for REG stock, which closed at $69.39 on Oct. 30.
Equity Residential (EQR)
Equity Residential is a multi-family residential REIT that owns and operates a diversified portfolio of apartment properties. In recent quarters, Brown says Equity Residential has reported an expense growth rate that’s higher than its same-store revenue growth rate. However, he says expense growth should moderate and net operating income growth should improve in coming months as interest rates drop. Brown says Equity’s key markets have all the attributes that apartment REIT investors like to see, including urban, coastal locations, strong rent growth and high occupancy rates. Morningstar has a “buy” rating and $80 fair value estimate for EQR stock, which closed at $60.31 on Oct. 30.
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 EchoStar accounts for only about 2% of SBA’s tower revenue, but virtually all of the company’s EchoStar revenue is at risk through 2028. Nevertheless, Hodel says SBA has continued to gradually grow its U.S. tower network while also patiently and responsibly expanding internationally. Morningstar has a “buy” rating and $265 fair value estimate for SBAC stock, which closed at $191.14 on Oct. 30.
Invitation Homes Inc. (INVH)
Invitation Homes owns, operates and leases single-family U.S. homes in the starter and move-up categories. The REIT’s portfolio is concentrated largely in the western U.S. and Florida. Brown says the cost of homeownership is higher than the cost of renting in most of Invitation’s markets, a dynamic that allows the REIT to maintain high occupancy rates even as it raises rents. Invitation Homes also benefits from using its own repair and maintenance technicians, which helps the company generate higher operating margins than competitors. Morningstar has a “buy” rating and $41 fair value estimate for INVH stock, which closed at $28.41 on Oct. 30.
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10 of the Best REITs to Buy for 2025 originally appeared on usnews.com
Update 10/31/25: This story was published at an earlier date and has been updated with new information.
