Top 5 REITs for Passive Real Estate Income
In November 2025, with mortgage rates still above 6 % and home prices at nosebleed levels in most developed countries, direct real estate ownership remains out of reach for millions. Publicly traded REITs offer the next-best thing: instant diversification, professional management, daily liquidity, and high dividend yields — all without ever dealing with a tenant or a leaking roof. Here are the top five REITs that serious income investors are buying right now for reliable, growing passive real estate cash flow.
1. Realty Income (O) – The Monthly Dividend Company
Realty Income owns over 15,600 single-tenant, triple-net properties leased to recession-resistant tenants like Dollar General, Walmart, FedEx, and 7-Eleven. Tenants pay taxes, insurance, and maintenance — the ultimate hands-off model. As of November 2025, it yields 5.1 %, pays monthly, and has raised its dividend for 30 consecutive years (655 consecutive monthly payments). Market cap ~$56 billion. Even through 2020–2022 rate hikes, same-store rent growth stayed positive and occupancy never dipped below 98 %.
2. Prologis (PLD) – The Amazon of Industrial Real Estate
Prologis is the world’s largest owner of logistics facilities, with 1.2 billion square feet across 19 countries. E-commerce and supply-chain re-shoring continue to drive 8–12 % annual rent growth in 2025. Occupancy is 97.5 %, average lease length is 5+ years, and 70 % of tenants are investment-grade. Current yield is 3.3 %, but dividend growth has averaged 13 % annually over the past decade. Market cap ~$118 billion. If you believe global trade and next-day delivery are here to stay, Prologis is the purest play.
3. AvalonBay Communities (AVB) – Premium Sunbelt Apartments
AvalonBay owns 90,000+ upscale apartment units concentrated in high-job-growth markets: Boston, New York, D.C., Seattle, San Francisco, and increasingly Austin, Denver, and the Southeast. In 2025, Sunbelt markets are seeing 6–9 % rent growth while supply remains constrained. Same-community NOI growth is running at 7.5 %, occupancy 96 %, and the balance sheet is fortress-like (net debt/EBITDA ~5.2x). Yield 3.7 %, 15+ years of consecutive dividend increases.
4. American Tower (AMT) – The Invisible Infrastructure King
American Tower owns 225,000+ cell towers and data-center assets in the U.S., Europe, Africa, and Latin America. 5G rollout, edge computing, and exploding mobile data demand drive 5–7 % organic revenue growth plus built-in escalators of 3 % per year in most leases. 70 % of revenue comes from investment-grade tenants (Verizon, AT&T, T-Mobile). Yield 3.1 %, but FFO-per-share growth has compounded at 12 % annually for 15 years. Market cap ~$110 billion.
5. Extra Space Storage (EXR) – Self-Storage Cash Machine
Self-storage has been one of the best-performing real estate sectors for two decades, and Extra Space is the highest-quality operator. People store stuff during life transitions (moving, divorce, death, downsizing), which makes demand incredibly stable. In 2025, street rates are up 8–12 % year-over-year in most markets, occupancy is 94 %, and same-store NOI growth is 9 %. Yield 4.4 %, dividend growth 15 %+ annually over the past 10 years. The company also benefits from high operating leverage — once a facility is built, margins are 70–80 %.
Why these five specifically? They all share five critical traits in 2025: wide-moat business models, investment-grade balance sheets, consistent mid-single-digit or better same-store growth, proven dividend safety through multiple recessions, and management teams that have compounded book value per share at 8–12 % annually for decades. Together they give you exposure to retail, industrial, residential, infrastructure, and specialty real estate with almost zero overlap. A simple equal-weighted portfolio of these five currently yields ~3.9 % with expected dividend growth of 7–10 % per year and total returns in the 9–12 % range long-term — all while you do absolutely nothing.