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AMZN   128.42 (-0.82%)
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GOOGL   108.72 (-0.67%)
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TSLA   285.24 (+0.54%)
NVDA   137.18 (+0.03%)
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BABA   88.94 (-1.83%)
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MU   54.46 (-0.98%)
CGC   3.41 (+0.00%)
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GE   73.19 (-0.53%)
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AMC   8.43 (+0.48%)
PYPL   95.19 (+0.23%)
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S&P 500   3,980.35 (+0.01%)
DOW   31,580.63 (+0.00%)
QQQ   298.28 (-0.23%)
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MSFT   257.35 (-0.29%)
META   160.47 (+0.05%)
GOOGL   108.72 (-0.67%)
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NVDA   137.18 (+0.03%)
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BABA   88.94 (-1.83%)
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Real Estate Investment Trusts (REITS)

A real estate investment trust (REIT) is a company that owns, operates, or finances income-generating real estate. Similar to mutual funds, REITs pool capital of multiple investors to purchase investment properties, mortgages, and other real estate assets. This page lists the 100 largest United States REITs by market cap. What is a REIT?

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CompanyCurrent PricePE RatioMarket CapVolumeAverage VolumeDividend YieldAnnual PayoutIndicator(s)
American Tower Co. stock logo
American Tower
42.61$120.62 billion6,4721.27 million2.21%$5.72Positive News
Prologis, Inc. stock logo
25.28$93.58 billion12,1102.17 million2.50%$3.16Dividend Announcement
Crown Castle Inc. stock logo
Crown Castle
48.63$74.97 billion9,1481.19 million3.40%$5.88
Public Storage stock logo
Public Storage
28.97$59.67 billion4,050605,6332.35%$8.00
Equinix, Inc. stock logo
91.74$58.73 billion479325,4301.92%$12.40
Realty Income Co. stock logo
Realty Income
64.09$40.87 billion47,2003.38 million4.37%$2.97Analyst Report
Welltower Inc. stock logo
87.39$35.31 billion10,1122.24 million3.14%$2.44
SBA Communications Co. stock logo
SBA Communications
101.33$35.29 billion1,183470,3720.87%$2.84
Digital Realty Trust, Inc. stock logo
Digital Realty Trust
26.77$35.09 billion3,6621.17 million4.00%$4.88Positive News
Simon Property Group, Inc. stock logo
Simon Property Group
15.78$34.68 billion5,4911.56 million6.72%$6.80
VICI Properties Inc. stock logo
VICI Properties
33.21$32.30 billion26,6405.67 million4.29%$1.44
AvalonBay Communities, Inc. stock logo
AvalonBay Communities
36.36$29.59 billion1,264540,2783.01%$6.36
Equity Residential stock logo
Equity Residential
23.00$28.81 billion3,1601.03 million3.26%$2.50News Coverage
Extra Space Storage Inc. stock logo
Extra Space Storage
30.79$27.38 billion3,482598,5422.93%$6.00
Alexandria Real Estate Equities, Inc. stock logo
Alexandria Real Estate Equities
83.73$25.28 billion801829,0563.05%$4.72Dividend Announcement
Weyerhaeuser stock logo
10.25$24.90 billion18,8232.60 million2.14%$0.72
Duke Realty Co. stock logo
Duke Realty
23.98$22.98 billion10,6471.70 million1.88%$1.12Dividend Announcement
Mid-America Apartment Communities, Inc. stock logo
Mid-America Apartment Communities
33.62$19.79 billion3,578484,6312.92%$5.00
Sun Communities, Inc. stock logo
Sun Communities
58.48$19.69 billion2,813587,7352.20%$3.52Dividend Announcement
Ventas, Inc. stock logo
984.20$19.67 billion5,4121.81 million3.66%$1.80
Essex Property Trust, Inc. stock logo
Essex Property Trust
46.46$17.88 billion1,662312,9093.20%$8.80
W. P. Carey Inc. stock logo
W. P. Carey
31.23$16.57 billion1,316816,4104.94%$4.24Negative News
UDR, Inc. stock logo
97.88$15.26 billion7,6241.62 million3.24%$1.52
Iron Mountain Incorporated stock logo
Iron Mountain
41.64$15.25 billion9,5861.19 million4.71%$2.47
Healthpeak Properties, Inc. stock logo
Healthpeak Properties
65.27$14.44 billion5,7553.08 million4.48%$1.20
Camden Property Trust stock logo
Camden Property Trust
17.43$14.13 billion3,748671,4422.83%$3.76Positive News
Equity LifeStyle Properties, Inc. stock logo
Equity LifeStyle Properties
47.95$13.56 billion2,381617,8622.25%$1.64News Coverage
Positive News
Kimco Realty Corp stock logo
Kimco Realty
18.03$13.38 billion122,0492.85 million3.70%$0.80
Boston Properties, Inc. stock logo
Boston Properties
20.15$13.26 billion21,3201.03 million4.63%$3.92Analyst Downgrade
American Homes 4 Rent stock logo
American Homes 4 Rent
64.33$12.77 billion11,1831.57 million1.96%$0.72
Gaming and Leisure Properties, Inc. stock logo
Gaming and Leisure Properties
22.39$12.70 billion3,7572.30 million5.67%$2.82
Host Hotels & Resorts, Inc. stock logo
Host Hotels & Resorts
21.86$12.50 billion81,5896.25 million1.37%$0.24
Host Hotels & Resorts, Inc. stock logo
Host Hotels & Resorts
21.86$12.50 billion81,5896.25 million1.37%$0.24
Sino Land Company Limited stock logo
Sino Land
N/A$11.81 billion1,3592,5842.35%$0.17Gap Down
Life Storage, Inc. stock logo
Life Storage
34.59$10.98 billion2,349481,1223.32%$4.32
Rexford Industrial Realty, Inc. stock logo
Rexford Industrial Realty
66.65$10.83 billion9,984748,0011.99%$1.26News Coverage
Annaly Capital Management, Inc. stock logo
Annaly Capital Management
2.62$10.72 billion215,08121.86 million13.33%$0.88
Regency Centers Co. stock logo
Regency Centers
21.96$10.71 billion4,398737,5664.02%$2.50
Regency Centers Co. stock logo
Regency Centers
21.96$10.71 billion4,398737,5664.02%$2.50
CubeSmart stock logo
43.99$10.56 billion3,586976,6993.65%$1.72
Lamar Advertising stock logo
Lamar Advertising
21.65$9.87 billion825338,8524.94%$4.80Dividend Announcement
Medical Properties Trust, Inc. stock logo
Medical Properties Trust
7.30$8.74 billion60,2416.99 million7.95%$1.16News Coverage
Positive News
Federal Realty Investment Trust stock logo
Federal Realty Investment Trust
29.95$8.39 billion2,268463,8734.13%$4.28
National Retail Properties, Inc. stock logo
National Retail Properties
26.52$7.99 billion1,292810,2384.88%$2.20Analyst Report
Americold Realty Trust, Inc. stock logo
Americold Realty Trust
N/A$7.98 billion2,5761.11 million2.97%$0.88Dividend Announcement
Positive News
STORE Capital Co. stock logo
STORE Capital
22.70$7.70 billion9,4471.82 million5.65%$1.54Analyst Report
Analyst Revision
Omega Healthcare Investors, Inc. stock logo
Omega Healthcare Investors
17.14$7.58 billion6,4861.28 million8.27%$2.68
EastGroup Properties, Inc. stock logo
EastGroup Properties
32.54$7.29 billion326179,2502.63%$4.40
Starwood Property Trust, Inc. stock logo
Starwood Property Trust
9.45$7.13 billion19,3091.49 million8.33%$1.92Analyst Report
Positive News
First Industrial Realty Trust, Inc. stock logo
First Industrial Realty Trust
22.27$6.91 billion7,556678,7822.25%$1.18
Brixmor Property Group Inc. stock logo
Brixmor Property Group
23.02$6.69 billion99,3431.39 million4.30%$0.96
Apartment Income REIT Corp. stock logo
Apartment Income REIT
6.96$6.52 billion1,132624,1614.25%$1.80
AGNC Investment Corp. stock logo
AGNC Investment
N/A$6.23 billion49,5565.96 million12.09%$1.44
Agree Realty Co. stock logo
Agree Realty
39.90$6.02 billion3,030503,4663.73%$2.81Positive News
Kilroy Realty Co. stock logo
Kilroy Realty
30.35$5.85 billion2,292802,5624.15%$2.08News Coverage
Healthcare Realty Trust Incorporated stock logo
Healthcare Realty Trust
84.07$5.58 billion10,1593.05 million1.80%$0.44Positive News
STAG Industrial, Inc. stock logo
STAG Industrial
24.30$5.58 billion5,2051.00 million4.69%$1.46
Vornado Realty Trust stock logo
Vornado Realty Trust
41.41$5.24 billion17,4571.70 million7.76%$2.12
Rayonier Inc. stock logo
36.32$5.05 billion3,221338,0913.30%$1.14
Blackstone Mortgage Trust, Inc. stock logo
Blackstone Mortgage Trust
11.68$4.85 billion16,0771.19 million8.70%$2.48
National Storage Affiliates Trust stock logo
National Storage Affiliates Trust
52.47$4.77 billion4,779625,4724.23%$2.20
Ryman Hospitality Properties, Inc. stock logo
Ryman Hospitality Properties
446.74$4.68 billion965246,359N/AN/ADividend Announcement
Analyst Upgrade
News Coverage
Gap Up
Independence Realty Trust, Inc. stock logo
Independence Realty Trust
30.29$4.37 billion6,4941.44 million2.84%$0.56Positive News
Kite Realty Group Trust stock logo
Kite Realty Group Trust
N/A$4.28 billion13,7651.19 million4.30%$0.84Positive News
Rithm Capital Corporation stock logo
Rithm Capital
4.57$4.24 billion10,5872.73 million11.00%$1.00
Cousins Properties Incorporated stock logo
Cousins Properties
14.62$4.21 billion4,319793,3764.61%$1.28
Phillips Edison & Company, Inc. stock logo
Phillips Edison & Company, Inc.
116.41$3.83 billion7,441549,3713.20%$1.08Dividend Increase
News Coverage
Physicians Realty Trust stock logo
Physicians Realty Trust
47.97$3.80 billion6,3051.28 million5.48%$0.92Positive News
Douglas Emmett, Inc. stock logo
Douglas Emmett
43.57$3.75 billion50,8501.23 million5.25%$1.12Dividend Announcement
Granite Real Estate Inc. Staple stock logo
Granite Real Estate Inc. Staple
4.11$3.71 billion2,0587,1964.24%$2.39
Granite Real Estate Inc. Staple stock logo
Granite Real Estate Inc. Staple
4.11$3.71 billion2,0587,1964.24%$2.39
Apple Hospitality REIT, Inc. stock logo
Apple Hospitality REIT
27.72$3.62 billion7,9841.17 million5.32%$0.84
Hannon Armstrong Sustainable Infrastructure Capital, Inc. stock logo
Hannon Armstrong Sustainable Infrastructure Capital
40.25$3.39 billion1,368578,5413.84%$1.50
Sabra Health Care REIT, Inc. stock logo
Sabra Health Care REIT
77.11$3.38 billion19,0861.39 million8.19%$1.20Positive News
Broadstone Net Lease, Inc. stock logo
Broadstone Net Lease
26.47$3.34 billion3,2661.23 million5.59%$1.08Analyst Report
Positive News
The Howard Hughes Co. stock logo
Howard Hughes
25.44$3.33 billion2,195215,163N/AN/AAnalyst Revision
Gap Up
Highwoods Properties, Inc. stock logo
Highwoods Properties
11.37$3.26 billion5,517806,1306.44%$2.00
EPR Properties stock logo
EPR Properties
23.83$3.22 billion2,314654,3777.69%$3.30Analyst Report
PotlatchDeltic Co. stock logo
8.22$3.20 billion1,848359,9473.81%$1.76Buyback Announcement
Outfront Media Inc. stock logo
Outfront Media
23.10$3.14 billion28,8911.86 million6.26%$1.20News Coverage
SL Green Realty Corp. stock logo
SL Green Realty
10.50$3.05 billion9,406831,7957.87%$3.73Analyst Upgrade
Essential Properties Realty Trust, Inc. stock logo
Essential Properties Realty Trust
23.41$2.97 billion3,256712,2044.86%$1.08
DigitalBridge Group, Inc. stock logo
DigitalBridge Group
N/A$2.96 billion14,1951.60 millionN/AN/A
Equity Commonwealth stock logo
Equity Commonwealth
N/A$2.96 billion2,379442,416N/AN/A
National Health Investors, Inc. stock logo
National Health Investors
45.09$2.94 billion1,751267,4445.47%$3.60
Corporate Office Properties Trust stock logo
Corporate Office Properties Trust
22.31$2.93 billion1,514476,7934.21%$1.10Positive News
LXP Industrial Trust stock logo
LXP Industrial Trust
9.54$2.91 billion15,4231.29 million4.62%$0.48News Coverage
SITE Centers Corp. stock logo
SITE Centers
18.71$2.80 billion25,3521.39 million3.97%$0.52Analyst Report
JBG SMITH Properties stock logo
JBG SMITH Properties
38.84$2.53 billion7,342914,2224.07%$0.90
Arbor Realty Trust, Inc. stock logo
Arbor Realty Trust
7.20$2.49 billion4,8031.68 million10.67%$1.56News Coverage
Pebblebrook Hotel Trust stock logo
Pebblebrook Hotel Trust
N/A$2.30 billion6,3131.33 million0.23%$0.04Positive News
Four Corners Property Trust, Inc. stock logo
Four Corners Property Trust
22.09$2.18 billion2,084293,7184.98%$1.33Analyst Report
Uniti Group Inc. stock logo
Uniti Group
12.31$2.16 billion8,8781.08 million6.59%$0.60
Retail Opportunity Investments Corp. stock logo
Retail Opportunity Investments
40.64$2.13 billion8,929592,3803.05%$0.52News Coverage
CareTrust REIT, Inc. stock logo
CareTrust REIT
302.57$2.06 billion886642,5365.19%$1.10
The Macerich Company stock logo
53.11$2.05 billion12,1121.70 million6.28%$0.60News Coverage
RLJ Lodging Trust stock logo
RLJ Lodging Trust
N/A$1.99 billion11,9521.05 million0.33%$0.04Positive News
DiamondRock Hospitality stock logo
DiamondRock Hospitality
40.36$1.87 billion18,7661.36 millionN/AN/ANews Coverage
Positive News
Chimera Investment Co. stock logo
Chimera Investment
N/A$1.85 billion11,1391.45 million16.52%$1.32News Coverage
LTC Properties, Inc. stock logo
LTC Properties
19.06$1.79 billion462223,5045.16%$2.28Analyst Upgrade
Do Real Estate Investment Trusts Deserve a Place in Your Portfolio?

REITs have many attractive features, but they’re not for every investor

A Real Estate Investment Trust (or REIT) is made up of a number of real estate companies that own a portfolio of income-producing real estate assets. Investing in a REIT allows these investors to earn a share of the income that these assets produce.

For a company to be considered a REIT, it must meet many specific requirements. These requirements, which were established by Congress when they created the concept of a REIT in 1960, help ensure that investors can maximize the income generating aspect of a REIT.

In this article, we’ll look at REIT ETFs as an investment decision. For those investors who are unfamiliar with what REITs are, we’ll define what a REIT is as well as look at give a basic overview of what an ETF is. As the article goes on, we’ll put the two together to show why a REIT ETF can give investors the advantages of investing in real estate with less risk.

What is a Real Estate Investment Trust (REIT)?

In 1960, Congress established a financial product that would allow individual investors to invest in real estate without having to buy or finance property. Real estate investment trusts are divided into two categories: equity REITs and mortgage REITs.

  • Equity REITs – These companies invest in a variety of commercial properties such as offices, shopping malls, apartments, and hotels. The primary income source for these REITs comes through the income they receive from rent. Equity REITs currently make up the majority of the REIT market with more than $2 trillion of assets under management. Avalon Bay Communities (NYSE: AVB) is an example of an equity REIT.
  • Mortgage REITs – In contrast to equity REITs, these companies are composed of more residential than commercial properties and most of their income is derived from mortgages and mortgage-backed securities. Mortgage REITs (or mREITs) profit from the spread between the interest rates they earn from their mortgage loans and the rates they are changed for their short-term borrowing. For example, let’s look at a mortgage REIT that purchases a 15-year mortgage that pays them 3% interest per year. If their short-term borrowing cost is 2% per year, than they will have a difference, or spread of 1% that represents their profit. New York Mortgage Trust (NASDAQ: NYMT) is an example of a mortgage REIT.

REITs can be publicly listed and publicly traded in the stock market, publicly listed (but not publicly traded), or privately listed. REITs must follow specific rules that make them an attractive investment. To begin with, REITs are modeled after mutual funds in the sense that every REIT contains a “basket” of properties. The Internal Revenue Service (IRS) treats a REIT like a corporation. Shares in a REIT must be widely held by shareholders and the REIT itself must primarily own or finance real estate. In addition, their real estate holding must have a long-term investment outlook.

Some additional rules that govern REITs include:

  • At least 75% of their income must be earned from real estate as rent, interest, or the sale of real estate assets.
  • At least 75% of their assets must be in real estate.
  • At least 95% of their income must be passive.
  • At least 90% of their taxable income must be distributed to shareholders as dividends (a REIT has no retained earnings). All dividends are taxed at ordinary rates.

What are the Benefits to Investing in REITs?

  • Dividend income – Because of the rules that govern REITs, investors are assured of a dividend payout that is higher in proportion to other stocks. Financial advisors will often recommend a REIT to their income-oriented clients because the dividend yields have historically been higher then stocks on the S&P 500 index.
  • Diversification – REITs have a historically low correlation with other asset classes like stocks and bonds. This means that when stocks and bonds are undergoing a correction, REITs generally may do well. However, to maximize the benefits of diversification, investors should look to invest in a variety of REITs so as to get diversification not only between asset classes but also within an asset class.
  • Inflation Hedging – Equity REITs, in particular, have demonstrated an ability to generate increased revenue – from rent for example – even during periods when inflation is on the rise. This means that investors who are looking for an income that will provide reliable income that can help sustain a longer retirement timeline.
  • Total Return Performance – In addition to issuing regular dividends, REITs have a proven history of long-term capital appreciation. In fact over the past half century, REITs have outperformed the broader stock market as well as other assets.
  • Liquidity and Transparency – Because they trade on stock exchanges, REITs offer the same liquidity as other stocks. And because those that are publicly traded are registered and regulated by the SEC, investors are assured that the companies are subject to the SEC standards for corporate governance, financial reporting and information disclosure.

REITs Help Investors Tap the Value of Real Estate

A real estate investment trust (REIT) is an attractive option for investors who want to get the benefits of investing in real estate without owning property. However, just like the housing market, a REIT can be subject to the volatility of the stock market.

And by combining the popularity of exchange-traded funds (ETFs) with an investment in REIT stocks, investors can get the benefits of REIT stocks with much lower risk. With a REIT ETF, investors can own a diverse group of properties inside of a fund that is traded in the same way that they would buy and sell shares on a stock exchange. REIT ETF investors also benefit from the high dividend yields that REIT ETFs generate.

Like any ETF investors should pay close attention to the ETF’s prospectus for information regarding who manages the fund, the fees and expenses associated with the fund, whether the fund is actively or passively managed, and the overall investment philosophy of the fund before deciding whether to invest. A REIT ETF carries the same risks, although perhaps moderated, as other real estate investments. The most notable threat to the profitability of an ETF is rising interest rates.

What is an Exchange-Traded Fund (ETF)?

An exchange-traded fund (ETF) is one of many financial products that serve as a vehicle for investing in REITs. In contrast to a mutual fund which reconciles share price once a day based on the fund’s closing price, shares of an ETF trade like common stock on an exchange, meaning the market price will go up or down throughout a trading session as shares are bought and sold.

An ETF generally trades with a higher daily volume than a mutual fund and has lower fees and expenses which can make them more attractive for investors. Like a publicly traded company that sells shares on a stock exchange, a company that manages an ETF is required to disclose information about the fund to the public.

The REIT ETF Puts it All Together

A REIT ETF is an exchange-traded fund that is exclusive to REIT stocks. As an investor, REIT funds are an ideal vehicle to use a low-cost investment vehicle to gain exposure to a diverse range of properties. As with any investment, investors should take care to perform their due diligence before deciding to invest money in a REIT ETF.

  • Know who manages the ETF – in many cases, REIT ETFs are issued by well-known investment firms that have earned the trust of investors. However, as ETFs have become increasingly popular, there are more companies that are ETFs being created. Just because a company is not well-known does not make it a bad investment, it just means that investors may have to perform more research before making an investment.
  • Know the fee structure – Although most ETFs charge lower fees and expenses than a mutual fund there are exceptions. The best way to compare the fees and expenses of an ETF is similar how you would compare any asset class. Look at the prospectus of the REIT you are considering along with the prospectus of REIT ETFs that share a similar portfolio of assets.
  • Know your risk tolerance – REIT ETFs help manage the risk that can come from owning real estate. They cannot, however, eliminate all risk. As should be expected, REIT ETFs are subject to the same market forces that affect the real estate market. They are extremely sensitive to interest rates as well as employment rates.

How to Have Success with a REIT ETF

There are currently more than 200 REIT ETFs for investors to choose from. REIT ETFs are beginning to figure prominently in the 401(k) plans. However, like other investment vehicles, not all ETFs are the same. To have success, investors should understand what the investment philosophy of the ETF is and match that to their personal risk tolerance.

Like any mutual fund, portfolio managers can get very niche driven which can add more risk to the ETF than investors are comfortable with. You should also be sure to know if the fund is actively managed or passively managed.

In an actively managed ETF, a portfolio manager selects the REIT stocks that make up the fund and will actively buy and sell stocks to generate a higher total return. In a passively managed fund, the portfolio manager seeks stocks that track an index. The Financial Times Stock Exchange (FTSE) Nareit Index tracks the performance of the U.S. REIT industry and the Global REIT market.

Finally, investors should look for diversification. This means looking at U.S. REIT ETFs as well as the global REIT ETF market.

Some Final Thoughts on Real Estate Investment Trusts

One of the most important strategies for investment success is the ability to profit in any market condition. Investors have long understood the value of real estate as an investment vehicle. However, property ownership was, and in some cases still is, a barrier of entry for all but institutional investors.

That was one of the reasons Congress established the concept of a real estate investment trust (REIT) that would give individual investors an opportunity to invest in real estate without owning residential or commercial real estate. Just like the housing market, a REIT can be subject to the volatility of the stock market. However, REITs have several rules in place that make them an attractive investment option. When you combine those rules with the benefits of an exchange-traded fund (ETF), REITs can be an attractive alternative for income-oriented investors in any market.

For income investors, a REIT EFT can help produce regular and predictable income even in times of low interest rates. A REIT ETF provides the ability for investors to gain exposure to and profit in the real estate market without owning property. Owning shares of a REIT ETF is similar to buying shares of a REIT stock with the exception that investors have more diversification because they are purchasing a basket of companies rather than tying their investment to a specific REIT stock.

One of the most important benefits of a REIT ETF is regular dividend distributions along with some capital appreciation that can lead to a total return that, while not as high as if the investor-owned the underlying properties comes with significantly lower risk. Like the real estate market in general, REIT ETFs can be sensitive to fluctuations in interest rates.

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