The 10-year Treasury yield sits near 4.45%, and Federal Reserve Chair Kevin Warsh has signaled he is in no hurry to cut rates. Higher borrowing costs have weighed on real estate investment trusts, pushing many REIT share prices well below their 12-month highs and lifting their dividend yields. For income investors, that pain has opened a door. The best REITs for income right now are Prologis, American Tower, Digital Realty, Realty Income, Public Storage, VICI Properties, W. P. Carey, and Agree Realty. We screened the largest US-listed REITs and narrowed the list to eight based on dividend safety, balance sheet strength, and the durability of their rent.
How We Picked These Stocks
More than 200 REITs trade on US exchanges. A real estate investment trust, or REIT, owns income-producing property and, by law, must pay at least 90% of its taxable income to shareholders as dividends, which is why the group is a magnet for income investors. We filtered for a market cap above $5 billion, a dividend the company can cover from its rental cash flow, a manageable debt load, and tenants or properties that hold up when the economy slows. We excluded higher-yielding names whose payouts looked stretched. The result is eight REITs spread across eight different corners of real estate.
Prologis (NYSE: PLD)
Why it made the list: Prologis is the largest industrial REIT in the world, with warehouses and distribution centers near major ports and cities across the globe. Its buildings are the physical backbone of e-commerce, and roughly 2.8% of world GDP flows through space Prologis owns.
The bull case: Warehouse leases signed years ago are still rolling up to today's much higher market rents, which drives built-in rent growth even if the company signs no new tenants. Prologis is also turning some sites into data centers, adding a second growth engine tied to AI demand.
The risk: Industrial vacancy has ticked up as a wave of new warehouses came online, which can slow the pace of rent increases.
Key number: Prologis owns and manages about 1.2 billion square feet of logistics space.
American Tower (NYSE: AMT)
Why it made the list: American Tower owns and leases communications towers that carry cell signals for carriers like AT&T, Verizon, and T-Mobile. Each tower can hold several tenants, and adding a tenant to an existing tower costs almost nothing while lifting the rent.
The bull case: Carriers keep upgrading their networks for more data traffic, and their long leases with American Tower usually include annual rent increases built into the contract. The company also owns data centers through its CoreSite unit, tying it to cloud and AI growth.
The risk: The stock trades far below its 12-month high because rising rates hit tower REITs hard, and carrier consolidation in some overseas markets has trimmed tenant demand.
Key number: American Tower's carrier leases typically run five to ten years with roughly 3% annual rent increases built in.
Digital Realty (NYSE: DLR)
Why it made the list: Digital Realty is one of the largest data center REITs, renting server space and power to cloud providers and enterprises. The boom in artificial intelligence has turned data center capacity into one of the scarcest resources in technology.
The bull case: Demand for AI computing has driven data center vacancy to record lows and pushed rents higher, and Digital Realty has a large pipeline of pre-leased capacity under construction. Much of its future revenue is already contracted.
The risk: Building data centers eats enormous amounts of capital, so the company leans on debt and new share sales to fund growth, which can dilute existing holders.
Key number: Digital Realty runs more than 300 data centers across six continents.
Realty Income (NYSE: O)
Why it made the list: Realty Income calls itself The Monthly Dividend Company, and it has earned the name. It pays a dividend every month and has raised that payout for more than 30 straight years. We covered its dividend record in detail in our Realty Income dividend breakdown.
The bull case: Realty Income uses net leases, meaning tenants pay the taxes, insurance, and upkeep on top of rent, which keeps the REIT's costs low and predictable. Its tenants are mostly recession-resistant retailers like grocery stores, dollar stores, and pharmacies.
The risk: The portfolio is so large that any single new deal barely moves the needle, so growth per share is slow and steady rather than fast.
Key number: Realty Income owns more than 15,600 properties leased to over 1,500 tenants.
Public Storage (NYSE: PSA)
Why it made the list: Public Storage is the largest self-storage REIT in the country, with the orange-doored facilities found in nearly every metro area. Storage is a simple, high-margin business, and customers tend to keep paying even when money is tight.
The bull case: The company carries very little debt compared with most REITs, which protects its dividend when rates are high. It has also been buying smaller storage operators to add scale.
The risk: A flood of new storage construction in recent years has softened move-in rents, slowing growth after the pandemic-era surge.
Key number: Public Storage owns interests in roughly 3,000 self-storage facilities across the United States.
VICI Properties (NYSE: VICI)
Why it made the list: VICI Properties owns the real estate under some of the most famous casinos and resorts in the country, including Caesars Palace and the MGM Grand on the Las Vegas Strip. It leases the properties back to the operators on very long contracts.
The bull case: VICI's leases run for decades and include rent bumps tied to inflation, so its income rises as prices rise. The tenants have never missed a rent payment, even through the 2020 shutdowns.
The risk: The tenant list is concentrated in a handful of large gaming operators, so trouble at one big tenant would matter more than it would for a diversified landlord.
Key number: Most of VICI's leases carry terms of 15 years or longer before any renewal option.
W. P. Carey (NYSE: WPC)
Why it made the list: W. P. Carey is a diversified net-lease REIT that owns warehouses, industrial buildings, and retail space across the US and Europe. Like Realty Income, its tenants cover most property costs, and most leases include rent increases tied to inflation.
The bull case: After exiting the office market and resetting its dividend in late 2023, the company has a cleaner portfolio and has begun raising the payout again each quarter. Its inflation-linked leases are a real advantage while prices stay elevated.
The risk: The 2023 dividend reset cut the payout, a reminder that even long-tenured REITs will trim dividends when they reshape the business.
Key number: More than half of W. P. Carey's leases include rent increases tied directly to inflation.
Agree Realty (NYSE: ADC)
Why it made the list: Agree Realty is a smaller net-lease REIT focused on freestanding retail stores leased to strong national chains. Like Realty Income, it pays its dividend monthly, which appeals to investors who want a steady income stream.
The bull case: Its tenants are dominated by top-tier retailers such as Walmart, Tractor Supply, and Dollar General, names that keep paying rent through downturns. The smaller size means each new acquisition can still move growth in a way it cannot for the giants.
The risk: Heavy exposure to physical retail leaves it sensitive to store closures if a major tenant runs into trouble.
Key number: Roughly 68% of Agree Realty's rent comes from tenants with investment-grade credit ratings.
What Is Driving REITs Right Now
REITs trade partly like bonds, so when interest rates rise, their share prices usually fall and their yields climb. That is exactly what has happened over the past year as the Federal Reserve held rates high and the 10-year Treasury yield pushed back toward 4.45%. Several names on this list, including American Tower and Digital Realty, sit well below their 12-month highs as a result. For a buyer, a lower price on the same rent check means a higher starting yield.
Underneath the rate story, the businesses have split into two camps. Property types tied to technology and logistics, like data centers and warehouses, are seeing record demand and rising rents thanks to AI and e-commerce. Steady income property, like net-lease retail and storage, offers slower growth but very reliable dividends. Owning a mix of both is how income investors balance growth against safety. If you would rather own the whole group at once, our guides to the best dividend stocks and best dividend ETFs cover funds that hold REITs alongside other income payers.
What to watch:
- The Warsh Fed's next move: Any signal that rates will finally fall would likely lift REIT prices across the board. Our explainer on what happens to stocks when the Fed raises rates lays out the mechanics.
- Data center leasing: Fresh AI-related deals at Digital Realty and Prologis would confirm that demand for computing space is still climbing.
- Dividend announcements: Watch for the next payout raises at Realty Income, VICI, and Agree Realty, which would show their rental cash flow is still growing.
Bottom Line
This list is built for investors who want reliable, growing income from real estate without buying property directly. The safest, slowest payers here are the net-lease and storage names, while the data center and warehouse REITs offer more growth in exchange for more sensitivity to rates. A blend of both gives you monthly and quarterly dividends backed by long leases. Start with the property types you understand best.
Frequently Asked Questions
What are the best REITs for income?
The best REITs for income pair a well-covered dividend with durable rent. Strong current picks include Realty Income and Agree Realty for monthly net-lease income, VICI Properties and W. P. Carey for inflation-linked leases, Public Storage for a low-debt balance sheet, and Prologis, American Tower, and Digital Realty for growth tied to logistics, wireless, and AI data centers.
Are REITs a good investment when interest rates are high?
High rates pressure REIT share prices in the short term because REITs compete with bonds for income investors. That same pressure raises REIT dividend yields, so buyers can lock in more income per dollar invested. REITs with low debt and leases that raise rent over time, like Public Storage and VICI Properties, tend to hold up best when rates stay elevated.
How much of their income do REITs have to pay out?
By law, a REIT must distribute at least 90% of its taxable income to shareholders as dividends each year. In exchange, the company pays little or no corporate income tax. This rule is the main reason REIT dividend yields are usually higher than those of ordinary stocks.
Which REIT pays a monthly dividend?
Realty Income and Agree Realty both pay monthly dividends, which is unusual since most companies pay quarterly. Realty Income has paid a monthly dividend for decades and raised it for more than 30 straight years. Monthly payments can help retirees who want their investment income to line up with monthly bills.
What is a net-lease REIT?
A net-lease REIT rents property under a lease where the tenant pays the property taxes, insurance, and maintenance on top of the base rent. This keeps the landlord's costs low and its income predictable. Realty Income, W. P. Carey, VICI Properties, and Agree Realty all use net leases.
