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Real estate investment trusts (REITs) are companies that own or finance properties that may range from data centers supporting AI to office buildings, health care facilities, and shopping malls. REITs allow investors to gain exposure to the real estate market without directly purchasing or managing property.
REITs may offer benefits such as regular income, portfolio diversification, and a possible hedge against inflation. Shares of publicly traded REITs can also be sold through a brokerage, compared to the months it could take to sell a property. REITs also come with unique risks. They can be subject to market volatility, fluctuating in tandem with the real-estate market, and are likewise sensitive to interest rates.
A look at some of the major companies in the industry may provide insight into the diversity of options and whether REITs may have a role in your portfolio.
Key Points
- Real estate investment trusts (REITs) are companies that buy and sell properties to generate investment income.
- A REIT may hold a wide range of properties or concentrate on a particular type, such as apartment buildings, storage facilities, or even casinos.
- A REIT must distribute at least 90% of its taxable income to investors in the form of dividends, and invest 75%-plus of its assets in real estate and cash.
- Investing in REITs may help investors generate passive income, without having to purchase the property directly.
- Investors must pay taxes on dividends received, typically taxed as ordinary income.
10 Top Real Estate Investment Trusts (REITs)
Investors typically invest in REITs with the goal of generating consistent dividend income, though REITs can vary significantly in terms of the types of properties they invest in or how they’re structured. Equity REITs, more common, manage income-producing real estate, while mortgage REITs invest in mortgages, and still others are a hybrid. REITs may come with sector-specific opportunities and risks, as well.
If you’re interested in learning more about REIT stocks, here are ten REIT stocks with market capitalizations of at least $1 billion, ranked by market performance, as of April, 2026. Keep in mind, however, that there are many different types of REITs available, and it’s important to thoroughly research any stock you’re considering to determine if it might be a good fit for your portfolio.
| REIT | Ticker | Market Cap | P/E Ratio | Dividend Yield | 1-Month Return | 1-Year Return |
|---|---|---|---|---|---|---|
| Xenia Hotels & Resorts Inc | XHR | $1.5 billion | 50.80 | 3.53% | 11.2% | 70% |
| Outfront Media Inc | OUT | $5.1 billion | 32.41 | 4.13% | 6.7% | 117.2% |
| Host Hotels & Resorts Inc | HST | $14.2 billion | 19.36 | 3.88% | 11.4% | 62.4% |
| Prologis Inc. | PLD | $137.2 billion | 54.32 | 2.99% | 7.7% | 47.8% |
| Iron Mountain Inc. | IRM | $34.4 billion | 89.16 | 2.99% | 7.5% | 44.7% |
| Millrose Properties Inc. | MRP | $5.1 billion | 12.56 | 9.92% | 7.6% | 44.6% |
| Simon Property Group Inc. | SPG | $65.6 billion | 32.77 | 4.35% | 6.7% | 43.3% |
| Equinix Inc. | EQIX | $104.3 billion | 73.43 | 1.94% | 7.8% | 39.5% |
| Digital Realty Trust Inc. | DLR | $69.2 billion | 131.10 | 2.47% | 9.1% | 37.3% |
| American Healthcare REIT | AHR | $9.7 billion | 73.49 | 2% | -4.6% | 68.8% |
Source: Data from SoFi and Bloomberg, as of April 16, 2026. Universe of stocks includes U.S.-based companies with market capitalization of at least $1B and a positive price-to-earnings (P/E) ratio. Stocks ranked according to a blend of short-term and long-term performance.
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Xenia Hotels & Resorts Inc.
Xenia Hotels & Resorts is a hospitality-focused REIT, and trades under the ticker “XHR.” Specifically, it focuses on luxury and upscale properties, and owns 30 hotels with almost 8,900 rooms in aggregate across 14 states, as of 2025. It’s headquartered in Orlando, Florida, and was founded in 2014.
Outfront Media Inc.
Outfront Media, trading under the “OUT” ticker, isn’t a media company per se, but rather a media-focused REIT. The REIT invests in advertising assets, such as billboards and displays, which generate revenue and returns for investors. It’s based in New York City, and first went public in 2014.
Host Hotels & Resorts Inc.
Bethesda, Maryland-based Host Hotels & Resorts is a REIT that invests in — as its name implies — hotels and resorts. It trades under the “HST” ticker, and is the largest hospitality-focused REIT in the U.S. markets. As of 2026, it owns 76 hotels around the country, and nearly 42,000 hotel rooms. Interestingly, it also “shares corporate DNA” with a Washington, D.C.-based root beer stand that dates back to the 1920s.
Prologis Inc.
Prologis, trading under the “PLD” ticker, is a large industrial REIT that operates logistics facilities. It invests, owns, operates, and leases industrial and commercial spaces, such as warehouses, storage, or manufacturing facilities around the world that may support data centers, energy storage, and automation processes, among others.
Iron Mountain Inc.
Iron Mountain, trading under the “IRM” ticker, is a REIT that invests in business storage and information technology property. It has more than 240,000 customers in more than 50 countries around the world, and operates more than 1,400 facilities. It’s also been around for more than 70 years, giving it a long track record.
Millrose Properties Inc.
Millrose Properties trades under the “MRP” ticker, and focuses on acquiring and developing land that it in turn sells to homebuilders. It offers, as the company describes, a “homesite delivery system through its Homesite Option Purchase Platform (“HOPP’R”).” The REIT was spun off from another company, Lennar, in early 2025.
Simon Property Group Inc.
Simon Property Group, which trades under the “SPG” ticker, invests in a variety of commercial space and property — notably, shopping malls, shopping centers, outlet malls, and similar spaces. As a company, it dates back to 1960, and is headquartered in Indianapolis, Indiana. It owns and operates commercial properties and dining spaces in North America, Europe, and Asia.
Equinix Inc.
Equinix, trading under the “EQIX” ticker, has likewise benefitted from increasing demand for data centers, and has become one of the biggest REITs on the market as a result. The REIT is focused on AI infrastructure, and owns and leases commercial space for data centers (among other things). As of the end of 2025, the REIT comprised 280 data centers in 77 markets.
Digital Realty Trust Inc.
Digital Realty Trust trades under the “DLR” ticker, and like others on this list, primarily invests in data centers. As of 2026, it invests in more than 300 data centers in more than 55 metro areas around the world, and has more than 5,000 customers. It was founded in 2004 in Austin, Texas.
American Healthcare REIT
The ticker “AHR” is assigned to the American Healthcare REIT, which owns and operates health care-related facilities and properties around the country, and in the United Kingdom. As of 2026, the REIT owns 319 properties including skilled nursing facilities and senior housing communities, outpatient medical office buildings, hospitals, and other real estate investments.
What Are REITs?
A REIT or real estate investment trust is a company that purchases and holds real estate investments. REITs primarily produce income by collecting rents from tenants and selling properties as they appreciate in value. By law, REITs are required to distribute at least 90% of their taxable income to their shareholders as dividends.
REITs may be publicly-traded on an exchange, like stocks, or non-traded, though they can be considered a type of alternative investment. The types of real estate properties a REIT holds can include:
- Apartment buildings
- Senior living facilities
- Health care facilities
- Warehouses
- Office buildings
- Retail centers
- Hotels
- Data centers
- Cell towers
- Student housing
- Land
- Casinos
Reading a REIT’s prospectus can offer a better understanding of what the trust invests in and how it makes money.
What Are REIT ETFs?
A REIT ETF is an exchange-traded fund that holds a basket of REIT shares. Exchange-traded funds are similar to mutual funds in that respect, with one key difference: ETFs trade like stocks, meaning trades are executed right away, rather than being settled at market closing. That’s a plus if you value liquidity.
REIT ETFs may appeal to an investor who would like exposure to a wide variety of properties in a single investment. For example, instead of buying shares in one REIT that invests in hotels and resorts, a second REIT that invests in warehouses, and a third that holds retail properties, you could potentially get exposure to all three through a REIT ETF.
ETFs can be attractive to investors who are looking for a low-cost investment vehicle, or an easier entry point to real estate investing. REIT ETFs may have low minimum investment requirements and competitive expense ratios that allow investors to hold on to more of their gains over time.
For example, you may be able to invest in a REIT ETF with as little as $1, while the most affordable REITs and REIT mutual funds often require a significantly higher investment more to get started.
What Impacts the Price of REITs?
Several factors can influence REIT prices, and the real estate market in general. Some of the biggest drivers of price shifts may include:
- Interest rates: Changing interest rates can affect REIT share prices, moving them up or down over time. The impact of rates on REIT share values is tied to the broader economy.
- Economy: A strong economy may boost REITs if inflation is moderate and there’s steady demand for real estate. REIT prices may decline in a slowing economy, though real estate in general tends to outperform other investments in periods of recovery.
- Sector: The type of property a REIT invests in can influence pricing, due to differences in the risk and reward profiles of various real estate sectors.
- Debt: Higher debt levels may make a REIT less desirable if investors are concerned about its ability to generate steady income.
- Market sentiment: Market sentiment can affect REIT pricing, as well as pricing of other investments. When investors are optimistic, REIT prices may rise and performance may improve. Negative sentiment, on the other hand, can reduce demand for REITs and cause prices to decline, which may create buying opportunities for investors who are less risk-averse.
How to Evaluate REITs
REITs are not created equally and some may fit your investment needs or goals better than others. Perhaps the best REITs for you, as an individual investor, reflect your preferred level of diversification and risk tolerance, as well as your targets for annual returns and pricing. Here are some of the most helpful factors to consider as you compare REITs.
- Portfolio: Before you buy REIT shares, look under the hood to learn what it invests in. Specifically, consider the type of property or properties held, the location of those properties, their condition and age, and the types of tenants they’re most likely to attract.
- Dividend yield: Dividend yield is the amount of cash income a REIT generates annually, relative to its current share price. The dividend yield can tell you a bit about a REIT’s income potential, based on the dividends it expects to pay out.
- Funds from operations (FFO): Funds from operations measures a company’s recurring operating earnings and cash flow. A “good” FFO for a REIT means a positive trend that increases year over year, with no declines.
- Net asset value (NAV): NAV measures the estimated market value of a REIT’s assets, less its debts. Net asset value can help you determine if a REIT is overvalued or undervalued, compared to the broader market.
- Capitalization (Cap) Rate: Cap rate measures a REIT portfolio’s potential annual yield. A higher cap rate could indicate higher returns, but it can also mean more risk. Lower cap rates can signal lower returns and less risk.
- Occupancy rates: Occupancy rate tells you what percentage of a REIT’s property portfolio is currently leased. That’s important, as it can tell you something about the stability of the REIT’s income.
- Fees: REIT fees typically vary based on the type of REIT and its structure. With publicly-traded REITs, you may be subject to brokerage trading fees. Non-traded REITs, on the other hand, may charge commission fees, acquisition fees, management fees, and/or performance fees.
Pros and Cons of Investing in REITs
As with any investment, it’s helpful to consider the advantages and potential drawbacks. Here are the pros and cons of REIT investing, at a glance.
| REIT Pros | REIT Cons |
|---|---|
| REITs can offer diversification, which can help to spread risk across your portfolio. | REIT prices are sensitive to interest rate changes, economic shifts, and market sentiment. |
| REIT investments may provide steady passive income in the form of dividends. | REIT dividends are typically taxed as ordinary income, which may mean a higher tax burden for investors. |
| Investing in REITs offers access to the benefits of real estate without directly purchasing and managing property. | Investors have no control over which assets a REIT holds, or when assets are bought and sold. |
| Publicly traded REIT shares and REIT ETFs are highly liquid investments. | Some REITs may carry higher fees, which reduce net gains for investors. |
Pros
Here are some of the pros of REITs:
- Diversification. If you’ve invested solely in stocks and bonds up to this point, introducing REITs into the mix may help you spread out the risk in your portfolio.
- Income. The dividends generated from REITs may provide current income, or be used to purchase additional REIT shares. Automatic reinvestment of dividends may help you grow your real estate portfolio without investing additional cash out of pocket.
- Less stress. REITs allow you to sidestep the hassles that can accompany investment property management. For example, you don’t have to worry about things like maintenance, upkeep, and repairs since the REIT takes care of that.
- Liquidity. If you decide REITs are no longer right for you, or you want to move money from one REIT to another, it’s relatively easy to liquidate the shares of publicly traded REITs by selling them in your brokerage account. (Be aware that selling private or public non-traded REITs may involve a longer process.)
Cons
Here are some of the potential disadvantages of REITs:
- Market volatility. One of the biggest downsides to REIT investing is that they’re not immune to market volatility or interest rate swings. Understanding how things like changing economic policies and interest rate hikes or cuts can influence REIT pricing can help you manage the risk in your portfolio.
- Taxes. In terms of taxation, REIT dividends are typically treated as ordinary income. That means they’re taxed at your regular marginal tax rate, instead of the capital gains rate. That may be a disadvantage if it means you owe more in taxes on your REIT income.
- Less control. REIT investments are selected and managed by the REIT itself, so you have less choice about what you own. If you’re buying rental properties directly, on the other hand, you can decide which ones to purchase or which ones to avoid.
- Fees. Cost can be an issue with non-traded REITs, as there may be multiple fee layers to navigate.
How to Invest in REITs
If you’ve done the research and found some REITs to invest in, the next step is figuring out how to add them to your portfolio. Here’s how to invest in REITs (or REIT ETFs) online.
Step 1: Open a Brokerage Account
You’ll typically need a brokerage account to trade REIT shares. You’ll choose a brokerage, complete the new account application, and link a bank account to transfer funds from.
Step 2: Decide Which REITs to Buy
If you haven’t done any research yet, you’ll want to spend time comparing the top potential REITs to invest in, based on your risk tolerance and goals. Review the prospectus for each REIT you’re considering to compare underlying assets, performance, and cost, as well as the minimum investment required.
Step 3: Execute a Trade
Once you choose a REIT to buy, you’ll follow your brokerage platform’s prompts to initiate a trade. You’ll need to specify which REIT you’re purchasing and the amount, either in shares or dollars, that you want to invest.
REIT Investing Tips
Here are a few more things to know about how to invest in REITs.
- The process is typically the same whether you’re buying individual REITs, REIT ETFs, or REIT mutual funds.
- Trading fees vary by brokerage, though many platforms now offer commission-free trading for stocks and ETFs.
- Minimum investments may range from $1 for REIT ETFs to more than $1,000 for certain publicly-traded REITs.
- Check your workplace retirement accounts or IRA for REIT investment options, which may differ from what’s on tap at your brokerage.
Things to Avoid When Investing in REITs
REIT investing can be risky and the more you know, the easier it becomes to avoid potentially costly mistakes. If you’re considering REIT shares, watch out for these missteps.
- Chasing yield: Don’t invest without reviewing all the numbers, including FFO (funds from operations, a key metric for evaluating REIT health), dividend yield, cap rate, and NAV. You may be tempted to invest based on dividend yield alone, but that paints a limited picture of a REIT’s financial health and stability.
- Overweighting: Overweighting can happen when you invest in multiple REITs or REIT ETFs that hold the same underlying investments. That can concentrate risk in your portfolio, instead of spreading it out.
- Taxation: A high-performing REIT could be a boon for your portfolio, but don’t forget about the potential tax consequences associated with higher returns.
- High fees: Fees eat away at your investment returns, so it makes sense to avoid investing in any REIT if you don’t fully understand the fee structure and how what you’ll pay compares to overall performance.
- High risk: REITs aren’t all alike in terms of the risk they pose. Non-traded REITs, for instance, tend to be riskier than publicly traded ones. If you don’t fully understand what you’re getting with a non-traded REIT, you may want to steer clear of them.
The Takeaway
REIT stocks and ETFs provide investors with the opportunity to access a wide range of real estate investments, typically for the price of one share. If you decide that REIT stocks or REIT ETFs may be a good fit for your portfolio, it’s worth taking the time to research your options as well as the fundamentals of any specific REIT you’re considering. Remember that there are plenty of REITs to invest in, and the ones that you choose should ultimately reflect your risk tolerance, goals, and investment timeline.
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FAQ
What is the highest paying dividend REIT?
As of April 2026, one of the highest-paying dividend REITs was Invesco Mortgage Capital, Inc. (IVR). This mortgage REIT had a dividend yield of 16.85% at that time. Keep in mind, however, that yield is only one factor to consider when determining whether an investment is right for your portfolio.
What are the top commercial real estate REITs?
Some of the most popular commercial real estate REITs for 2026 include Prologis (PLD), Equinix (EQIX), and Simon Property Group (SPG). These REITs are often included in major indexes and generate income from properties such as global logistics facilities, data centers, and retail properties.
About the author
Rebecca Lake
Rebecca Lake has been a finance writer for nearly a decade, specializing in personal finance, investing, and small business. She is a contributor at Forbes Advisor, SmartAsset, Investopedia, The Balance, MyBankTracker, MoneyRates and CreditCards.com. Read full bio.
Photo credit: iStock/franckreporter
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