Real estate investing can be an excellent way to diversify a portfolio, hedge against inflation, generate passive income and profit from capital gains over time.
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However, owning and operating physical real estate assets can be costly, risky and difficult for individuals. Instead, investors can buy shares of real estate investment trusts, or REITs. REITs pool money from their investors and typically invest in diversified portfolios of real estate assets. REITs can specialize in residential, commercial or specialty real estate, and they often have high dividend yields.
Here are 10 of the best REITs to buy in 2026, according to Morningstar:
| REIT | Dividend yield | Implied upside* |
| American Tower Corp. (ticker: AMT) | 3.7% | 19% |
| Realty Income Corp. (O) | 5.4% | 25% |
| Crown Castle Inc. (CCI) | 4.6% | 27% |
| Extra Space Storage Inc. (EXR) | 4.5% | 9% |
| AvalonBay Communities Inc. (AVB) | 3.8% | 18% |
| Equity Residential (EQR) | 4.2% | 19% |
| SBA Communications Corp. (SBAC) | 2.5% | 25% |
| Essex Property Trust Inc. (ESS) | 3.7% | 9% |
| Kimco Realty Corp. (KIM) | 4.3% | 11% |
| Invitation Homes Inc. (INVH) | 4.1% | 29% |
*Based on June 8 closing price and Morningstar analysts’ price targets.
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 projects steady, mid-single-digit growth from the tower business over time but says it’s unlikely American Tower will exceed that organic growth rate without outside acquisitions. However, Hodel says he’s happy American Tower has dialed back its acquisitions in the recent years given the lack of attractive deals available. For now, Hodel says the REIT will likely focus on organic growth and share buybacks. Morningstar has a “buy” rating and $225 fair value estimate for AMT stock, which closed at $189.10 on June 8.
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 5.4% dividend yield and makes monthly dividend payments, making it an attractive income source. Analyst Kevin Brown says about 80% of Realty Income’s tenants are in retail, but they mostly operate service-oriented, defensive businesses. Morningstar has a “buy” rating and $75 fair value estimate for O stock, which closed at $60.01 on June 8.
Crown Castle Inc. (CCI)
Crown Castle is a specialty REIT that owns and operates wireless communications towers. In March 2025, Crown Castle agreed to sell its fiber business to Zayo Group Holdings. 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’s decision to divest its fiber business and focus on dividends and buybacks was the right call given AT&T Inc. (T) and Verizon Communications Inc. (VZ) have been developing their own fiber networks. Morningstar has a “buy” rating and $117 fair value estimate for CCI stock, which closed at $91.79 on June 8.
Extra Space Storage Inc. (EXR)
Extra Space Storage is one of the largest publicly traded self-storage REITs. Brown projects funds from operations (FFO) per share of $8.18 and a 0.7% annual decline in same-store net operating income (NOI) in 2026. In the longer term, he anticipates annual same-store NOI growth of 2.9% and FFO per share growth of 4.2% as oversupply pressures subside and structural demand recovers. Brown says Extra Space has demonstrated its ability to limit churn, and 64% of its current customer base has leases over 12 months. Morningstar has a “buy” rating and $158 fair value estimate for EXR stock, which closed at $145 on June 8.
AvalonBay Communities Inc. (AVB)
AvalonBay Communities is a multifamily residential REIT that specializes in upscale apartment communities. In May, AvalonBay and Equity Residential (EQR) announced a merger of equals deal to create a combined REIT with an enterprise value of approximately $69 billion and a portfolio of more than 180,000 rental apartments. AvalonBay shares have gained 4.6% in 2026, and Brown says both companies and their respective shareholders will benefit from the merger. He says AvalonBay’s properties are high-quality investments in attractive markets. Morningstar has a “buy” rating and $221 fair value estimate for AVB stock, which closed at $187.61 on June 8.
[READ: 8 Best Real Estate Stocks to Buy]
Equity Residential (EQR)
Equity Residential is a multifamily residential REIT that owns and operates a diversified portfolio of apartment properties. Once its merger with AvalonBay is completed, Equity Residential shareholders will own 48.8% of the combined company, while AvalonBay investors will own 51.2%. The executive teams of the two REITs estimate the deal will create roughly $125 million in cost savings within 18 months of closing. Brown is bullish on Equity Residential’s property portfolio, which is focused in high-growth core markets such as San Diego and Los Angeles. Morningstar has a “buy” rating and $80 fair value estimate for EQR stock, which closed at $67.34 on June 8.
SBA Communications Corp. (SBAC)
SBA Communications is a specialized REIT that owns and operates a global wireless communications tower network. Hodel says SBA is probably the most likely of the three public U.S. tower companies to be taken private, but SBA management has said rumors the company plans to go private have no “real basis.” Hodel says SBA has taken a cautious approach to acquisitions, which has allowed the company to avoid overpaying for assets, generate relatively strong returns on capital and aggressively repurchase its stock. Morningstar has a “buy” rating and $250 fair value estimate for SBAC stock, which closed at $200.10 on June 8.
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 portfolio is focused in urban markets that attract younger populations and should experience strong long-term growth and favorable demographic trends, including San Diego, Los Angeles and San Francisco. He anticipates these markets will experience income and job growth along with falling homeownership rates and relatively high single-family home prices. Brown says this dynamic will allow for above-average rent growth without Essex sacrificing occupancy rates. Morningstar has a “buy” rating and $308 fair value estimate for ESS stock, which closed at $282 on June 8.
Kimco Realty Corp. (KIM)
Kimco Realty is one of the largest U.S. owners and operators of neighborhood and community shopping centers. Shares are up 22% so far in 2026, the best performance of any REIT on this list. Brown says Kimco has completely restructured its portfolio since 2010 by strategically selling lower-quality assets and reinvesting the proceeds in high-yielding development and redevelopment projects. The REIT’s current properties are largely grocery-anchored centers, super-regional centers, power centers and mixed-use centers in major metropolitan markets. Morningstar has a “buy” rating and $27 fair value estimate for KIM stock, which closed at $24.24 on June 8.
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 rental costs are lower than homeownership costs in most of Invitation Homes’ markets, which allows the REIT to increase rents with minimal impact on occupancy. In addition, he says Invitation’s operating margins benefit from the company hiring its own repair technicians and maintenance workers instead of contracting that work out to expensive third parties. Morningstar has a “buy” rating and $38 fair value estimate for INVH stock, which closed at $29.38 on June 8.
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10 of the Best REITs to Buy for 2026 originally appeared on usnews.com
Update 06/09/26: This story was previously published at an earlier date and has been updated with new information.
