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 2026, according to Morningstar analysts:
| REIT | Dividend yield | Implied upside* |
| American Tower Corp. (ticker: AMT) | 3.7% | 27% |
| Equinix Inc. (EQIX) | 2.5% | 16% |
| Realty Income Corp. (O) | 5.6% | 31% |
| Public Storage (PSA) | 4.4% | 16% |
| Crown Castle Inc. (CCI) | 4.6% | 36% |
| Extra Space Storage Inc. (EXR) | 4.9% | 24% |
| AvalonBay Communities Inc. (AVB) | 4.0% | 32% |
| Equity Residential (EQR) | 4.6% | 32% |
| SBA Communications Corp. (SBAC) | 2.3% | 37% |
| Essex Property Trust Inc. (ESS) | 4.0% | 22% |
*From Dec. 11 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 U.S. tower segment growth has been sluggish, and EchoStar has disputed its obligation to pay future tower rents following its recent spectrum sale. However, Hodel says he isn’t concerned about EchoStar and never viewed it as a serious wireless competitor. While the EchoStar news has weighed on investor sentiment, Hodel says leasing activity among the three major U.S. wireless players is rebounding. Morningstar has a “buy” rating and $230 fair value estimate for AMT stock, which closed at $181.71 on Dec. 11.
Equinix Inc. (EQIX)
Equinix is a specialized REIT and is the world’s largest data center operator. The REIT is down about 20% year to date, the worst performance on this list. However, analyst Mark Giarelli says Equinix’s gross bookings growth has been solid and demand has been healthy as the company works to meet a generational need for data centers. Giarelli says Equinix has taken advantage of limited supply and raised prices. He projects constrained data center supply growth and says investors should focus on cabinet utilization rates, which measures how much server cabinet (also known as server rack) capacity is being used, and revenue per cabinet. Morningstar has a “buy” rating and $875 price target for EQIX stock, which closed at $754.13 on Dec. 11.
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 dividend yield on this list. Analyst Kevin Brown says Realty is a dependable REIT for income-oriented investors. Morningstar has a “buy” rating and $75 fair value estimate for O stock, which closed at $57.22 on Dec. 11.
Public Storage (PSA)
Public Storage is the largest owner of self-storage facilities in the U.S. The company also has an insurance business that allows customers to cover any stored goods and allows other self-storage property owners to provide tenant insurance to their customers as well. Brown says Public Storage shares are undervalued given the REIT’s facilities are located primarily within three to five miles of densely populated urban centers. The company has also invested heavily in expanding its coverage and scale and improving its technology platform and operating efficiency. Morningstar has a “buy” rating and $318 price target for PSA stock, which closed at $273.71 on Dec. 11.
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 4.6% yield after the cut. Hodel says Crown Castle generates stable cash flow, and its focus on funding its dividend rather than investing in growth initiatives makes sense. Crown Castle will also benefit from a carrier activity rebound. Morningstar has a “buy” rating and $125 fair value estimate for CCI stock, which closed at $91.84 on Dec. 11.
[Read: 7 Types of Stocks to Buy if Interest Rates Decline]
Extra Space Storage Inc. (EXR)
Extra Space Storage is one of the largest publicly traded self-storage REITs. Brown says Extra Space’s third-party management business is the largest in the U.S. and has allowed the company to increase its data sophistication and expand its footprint with minimal capital investment. He says self-storage REITs like Extra Space make excellent defensive investments and are considered recession-resistant. Demand for storage is driven in part by difficult life events such as job losses, downsizing and moving. Brown says migration and urbanization will also be demand tailwinds. Morningstar has a “buy” rating and $165 fair value estimate for EXR stock, which closed at $133.02 on Dec. 11.
AvalonBay Communities Inc. (AVB)
AvalonBay Communities is a multifamily residential REIT that specializes in upscale apartment communities. Brown says elevated interest rates are weighing on AvalonBay’s share price, but the REIT is undervalued at current levels given his forecast for annual same-store net operating income growth of around 3% over the long term. He says AvalonBay has been aggressive in selling assets to fund developments, a strategy that has been one of the company’s strengths in recent years. Brown says AvalonBay’s properties are primarily located in high-quality, urban coastal markets. Morningstar has a “buy” rating and $232 fair value estimate for AVB stock, which closed at $176.07 on Dec. 11.
Equity Residential (EQR)
Equity Residential is a multifamily residential REIT that owns and operates a diversified portfolio of apartment properties. Brown says Equity’s rental rate growth has accelerated for three consecutive quarters while expense growth decelerated in the most recent quarter. Looking ahead to 2026, he anticipates these trends will continue until rental rate growth rises to around 3% and expense growth falls to 3%. Equity repurchased 1.5 million shares of its stock last quarter at what Brown says was a significant discount to net asset value. Morningstar has a “buy” rating and $80 fair value estimate for EQR stock, which closed at $60.63 on Dec. 11.
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 is taking meaningful steps to stabilize its business and increase its long-term financial visibility. The company recently announced a new long-term master lease agreement with Verizon that Hodel says will support the company’s long-term target of mid-single-digit annual revenue growth. Morningstar has a “buy” rating and $265 fair value estimate for SBAC stock, which closed at $192.83 on Dec. 11.
Essex Property Trust Inc. (ESS)
Essex Property Trust is a residential REIT that owns and operates multifamily properties in California and the Pacific Northwest. Brown says same-store revenue growth decelerated in the most recent quarter, but that headline number is somewhat misleading. Essex collected less owed delinquency rent in the quarter, which weighed on overall same-store revenue. However, scheduled rent was up 2.4% in the quarter, a modest improvement. In the long term, Brown projects Essex will generate same-store net operating income growth in the 3% range, creating value for investors. Morningstar has a “buy” rating and $314 fair value estimate for ESS stock, which closed at $258.13 on Dec. 11.
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10 of the Best REITs to Buy for 2026 originally appeared on usnews.com
Update 12/12/25: This story was previously published at an earlier date and has been updated with new information.
