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 pay dividends. 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 2025, according to Morningstar analysts:
Prologis Inc.
Prologis is an industrial REIT that specializes in logistics real estate. Analyst Suryansh Sharma says net operating income growth will remain strong for Prologis over the next several years. However, Sharma says normalizing warehouse demand, slowing e-commerce growth, weakening macroeconomic conditions and rising development deliveries will weigh on rent growth. In the long term, Sharma says Prologis’ global land bank has the potential to support $37 billion in industrial projects. Prologis’ strategic capital segment also manages $60 billion in third-party assets that are generating significant cash flow. Morningstar has a “buy” rating and $125 fair value estimate for PLD stock, which closed at $108.81 on June 6.
American Tower Corp.
American Tower is a specialized REIT that operates the world’s largest independent portfolio of wireless communications and broadcast towers. American Tower shares are up 15.8% this year through June 6, the best performance of any REIT on this list. Analyst Samuel Siampaus says improving leasing activity and margins are boosting American Tower’s value profile, and it is benefiting from its highly diversified property portfolio. Siampaus says Sprint-related churn in the U.S. and carrier consolidation in Latin America have been headwinds, but the Africa and Europe markets have been strong. Morningstar has a “buy” rating and $243 fair value estimate for AMT stock, which closed at $212.49 on June 6.
Ventas Inc.
Ventas is a health care REIT that specializes in health care facilities, including specialty care facilities, housing for seniors, medical office buildings and hospitals. Analyst Kevin Brown says Ventas’ net operating income growth has decelerated, but it has done so at a slower pace than he anticipated. He says the market seems to be too pessimistic about the potential negative impact that research funding cuts by the Donald Trump administration will have on Ventas given the life science segment accounts for only about 8% of total net operating income. Morningstar has a “buy” rating and $75 fair value estimate for VTR stock, which closed at $63.62 on June 6.
Realty Income Corp.
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 real estate taxes, maintenance and building insurance costs. Realty Income has a 5.7% dividend yield and makes monthly dividend payments, making it an attractive income source. In fact, it has the highest yield of any REIT on this list. Brown says Realty’s retail-focused tenants generally operate defensive, recession-resistant businesses. Morningstar has a “buy” rating and $75 fair value estimate for O stock, which closed at $55.99 on June 6.
