Real estate investments can help investors diversify their investment portfolios, produce strong long-term returns, protect against inflation and generate steady cash flow.
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However, managing physical properties can be expensive and complex for individuals. For many real estate investors, it makes more sense to buy shares of real estate investment trusts, or REITs. These publicly traded companies manage extensive property portfolios and often pay significant dividends to their shareholders.
With various REIT options spanning residential, commercial and specialty sectors, REITs provide broad market diversification without the typical ownership burdens. 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) | 3.8% | 27% |
| Realty Income Corp. (O) | 5.0% | 16% |
| Public Storage (PSA) | 4.1% | 8% |
| Crown Castle Inc. (CCI) | 4.9% | 45% |
| Extra Space Storage Inc. (EXR) | 4.6% | 16% |
| AvalonBay Communities Inc. (AVB) | 4.0% | 15% |
| Equity Residential (EQR) | 4.3% | 24% |
| SBA Communications Corp. (SBAC) | 2.3% | 39% |
| Essex Property Trust Inc. (ESS) | 3.9% | 20% |
| Invitation Homes Inc. (INVH) | 4.4% | 51% |
*Based on Feb. 11 closing price and Morningstar analysts’ fair value estimates.
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’s business will see stable demand over time, but growth rates will likely be capped in the mid-single-digit range. American Tower has dialed back the pace of its acquisitions in the past three years, a decision that Hodel supports given the lack of opportunities to invest in properties with potential for high returns. He says American Tower’s balance sheet is also very strong. Morningstar has a “buy” rating and $230 fair value estimate for AMT stock, which closed at $180.48 on Feb. 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% 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 $64.50 on Feb. 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 locations are prime, often situated within five miles of densely-populated urban centers. The company has also differentiated itself by investing heavily in improving its scale, coverage, brand value, operating efficiency and technology. Finally, Brown says self-storage is a recession-resistant industry. Morningstar has a “buy” rating and $318 fair value estimate for PSA stock, which closed at $293.84 on Feb. 11.
Crown Castle Inc. (CCI)
Crown Castle is a specialty REIT that owns and operates wireless communications towers. Last 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 4.9% yield after the cut. In fact, its dividend represents one of the highest yields on this list. Hodel says Crown Castle’s fiber divestment was a wise decision, and Crown’s tower business is extremely impressive. Morningstar has a “buy” rating and $125 fair value estimate for CCI stock, which closed at $86.07 on Feb. 11.
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. self-storage industry, and it has allowed the company to increase its data sophistication, expand its geographical footprint and scale its operations without requiring significant capital investment. Because self-storage demand increases during difficult life events and transitional periods, Brown says self-storage investments have outperformed during past economic downturns. He says long-term trends such as urbanization, migration and decluttering are all bullish. Morningstar has a “buy” rating and $165 fair value estimate for EXR stock, which closed at $142.48.
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AvalonBay Communities Inc. (AVB)
AvalonBay Communities is a multi-family residential REIT that specializes in upscale apartment communities. The REIT is down 22% in the past year, the worst performance on this list. However, Brown says AvalonBay’s focus on top-tier markets such as New England, New York and Southern California will create value for investors over time. He says these markets have attractive traits for an upscale apartment operator, including income growth, job growth and decreasing homeownership rates. Brown says AvalonBay also regularly refreshes its portfolio by divesting non-core properties. Morningstar has a “buy” rating and $232 fair value estimate for AVB stock, which closed at $179.83 on Feb. 11.
Equity Residential (EQR)
Equity Residential is a multi-family residential REIT that owns and operates a diversified portfolio of apartment properties. Brown says Equity Residential has divested assets in inland and southern markets and focused on properties in stronger markets such as Los Angeles, San Diego and San Francisco. He says these markets are attractive urban centers that draw younger renters and support high apartment demand. Brown says Equity Residential has historically created significant shareholder value through development projects, and the return on new projects will improve further as interest rates drop. Morningstar has a “buy” rating and $80 fair value estimate for EQR stock, which closed at $64.65 on Feb. 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 that made SBA the largest tower operator in Central America. Hodel says SBA has spent the past decade gradually expanding its U.S. tower business while also looking for strategic opportunities in international markets. He says SBA’s prudent approach to acquisitions has helped the company avoid overpaying for assets and aggressively buy back its stock. Morningstar has a “buy” rating and $265 fair value estimate for SBAC stock, which closed at $190.96 on Feb. 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 Essex’s primary markets are exposed to all the favorable demographic trends that will allow for elevated rent growth without sacrificing high occupancy rates. In the long term, Brown says above-average income and job growth in these markets will support above-average net operating income growth for Essex. While the company’s development pipeline is relatively small, Brown says Essex Property has chosen high-quality projects that will create value. Morningstar has a “buy” rating and $314 fair value estimate for ESS stock, which closed at $261.41 on Feb. 11.
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 renting is lower than owning in most of Invitation’s markets, a dynamic that supports high occupancy rates and should allow the company to raise rents without sacrificing occupancy. In addition, Brown says the REIT’s in-house maintenance and repair technicians allow Invitation to maintain higher operating margins than smaller competitors. Morningstar has a “buy” rating and $41 fair value estimate for INVH stock, which closed at $27.20 on Feb. 11.
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10 of the Best REITs to Buy for 2026 originally appeared on usnews.com
Update 02/12/26: This story was previously published at an earlier date and has been updated with new information.
