Top 30 REITs to Invest in 2023 (US Real Estate Investment Trusts, REIT List)


US Real Estate Investment Trusts, REITs

What Is REITs Stock

A real estate investment trust (REIT) is a type of company that owns or finances income-generating real estate properties, such as shopping malls, apartment buildings, hotels, or office spaces. REITs operate similarly to mutual funds, as they pool money from individual investors to invest in a diversified portfolio of properties.

It is mandatory for REITs to:

  • Invest at least 75% of their total assets in real estate, cash, or US treasuries.
  • Distribute at least 90% of their taxable income to shareholders as dividends.

REITs have been around in the United States for over 50 years and REITs performed with an average annual return of 11.26% between 1972 and 2022.

Types of REITs

Real Estate Investment Trusts (REITs) come in different types – Each specializing in a specific category of income-generating real estate, from residential and commercial properties to infrastructure assets. By investing in REITs, investors can diversify their portfolios and potentially earn income through passive real estate investments.

  • Equity REITs: Own properties and earn money from renting them out.
  • Mortgage REITs: Invest in mortgages and make money from interest on their investments.
  • Retail REITs: Own retail properties like malls and stores.
  • Residential REITs: Own residential properties such as apartments and student housing.
  • Healthcare REITs: Specialize in healthcare properties like hospitals and care homes.
  • Office REITs: These are focused on mainly office spaces and buildings.
  • Industrial REITs: Own industrial properties like warehouses and distribution centers.
  • Infrastructure REITs: These REITs are especially for infrastructure properties like Toll roads, bridges, energy pipelines, telecommunication towers, etc.

REIT’s Performance: Historical Returns

IndexAverage Return (1972-2022)
FTSE Nareit All REITs11.26%
FTSE Nareit Composite11.24%
FTSE Nareit All Equity REITs12.76%
FTSE Nareit Equity REITs12.63%
FTSE Nareit Mortgage REITs8.26%
(Data source: Reit.com Some REIT subsectors, such as timber, infrastructure, and data centers, have not been tracked long enough for meaningful historical performance figures to be calculated.)

REITs are a popular choice for investors seeking reliable income and diversification through alternative assets. The performance of REITs depends on factors such as property features and risks. By understanding these factors, investors can make informed decisions to maximize their returns.

Top 30 REITs Stock List (2023)

(Reit Stock list By Market Cap)

CompanyMarketcapDividend YieldPriceState
Prologis, Inc.95.5B3.4%$103.3
American Tower Corporation (REI81.7B3.7%$174.9
Equinix, Inc.71.8B1.9%$756.8
Crown Castle Inc.41.4B6.6%$95.1
Public Storage46.3B4.6%$262.8
Realty Income Corporation46.1B5.7%$53.6
Welltower Inc.55.3B2.6%$93.6
Simon Property Group, Inc.53.3B5.2%$142.4
VICI Properties Inc.29.8B5.6%$28.5
SBA Communications Corporation21.5B1.7%$199.4
Digital Realty Trust, Inc.44.5B3.5%$139.6
AvalonBay Communities, Inc.27.2B0.0%$191.4
Equity Residential24.6B4.2%$65.0
Weyerhaeuser Company23.0B2.4%$31.5
Alexandria Real Estate Equities20.7B4.2%$118.1
Extra Space Storage Inc29.6B4.9%$135.1
Invitation Homes Inc.21.0B3.1%$34.3
0.00000%$0.0000
Ventas, Inc.17.6B4.1%$43.5
Mid-America Apartment Communiti15.4B4.4%$128.5
Sun Communities, Inc.15.7B3.1%$121.0
W. P. Carey Inc. REIT12.4B7.2%$56.5
Iron Mountain Incorporated (Del22.9B3.3%$78.3
Essex Property Trust, Inc.16.5B3.8%$248.3
UDR, Inc.13.5B4.5%$38.0
Gaming and Leisure Properties, 11.8B6.7%$43.5
Equity Lifestyle Properties, In12.5B2.9%$61.2
American Homes 4 Rent14.9B2.5%$35.6
Host Hotels & Resorts, Inc.13.8B3.4%$19.3
Kimco Realty Corporation (HC)12.5B5.0%$18.5


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REIT FAQ’s


What is a REIT?

REITs are large industries that have been around for over 50 years. What differentiates REITs from other funds is these companies invest a minimum of 75% of their assets in real estate, cash, or US treasuries. and distribute a minimum of 90% of their taxable income to shareholders in the form of dividends.

Is REITs are a good investment?

If you’re looking for a safe investment in real estate, REIT shares are a good option. They’re easy to buy and sell on the open market. You should check out the dividend yield of any REIT share before investing.

What makes a company a REIT?

To qualify as a Real Estate Investment Trust (REIT) a company must:
1. Invest at least 75% of its total assets in real estate.
2. Derive at least 75% of its gross income from rents from real property, and interest on mortgages.
3. Financing real property, or from sales of real estate.
4. Pay at least 90% of its taxable income in the form of shareholder dividends each year.
5. Be an entity that is taxable as a corporation.
6. Be managed by a board of directors or trustees.
7. Have a minimum of 100 shareholders.
8. Have no more than 50% of its shares held by five or fewer individuals.

Do REITs pay dividends?

Yes! REITs Pay at least 90% of their taxable income in the form of shareholder dividends each year.

How many REITs are there in the United States?


There are more than 1,100 U.S. REITs registered with the IRS that have filed tax returns. These include 225 that trade on one of the major stock exchanges.

Is it safe to buy REIT stocks?


Most REITs are safe investments but not all. Because many REITs have cut or suspended their dividends because they couldn’t withstand the financial volatility of the market. Also, whenever interest rates rise, REITs have the risk of losing value. So read the document and risk factors before investing.

Disclaimer

The information included on this site is for educational purposes only and is not intended to be a substitute for investment advice.

Data on past performance, where given, is not necessarily a guide to future performance. So before investing you should carefully consider the Fund’s investment objectives, risks, charges, and expenses.



Abheey

Abheey is a financial market enthusiast with 5 years of experience in Trading Stocks. He is an expert in simplifying financial concepts with data visualizations that helps people to create wealth.

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