Three Top Real Estate Investment Trusts to Know
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 5 days ago
0mins
Source: Fool
- Federal Realty Investment Trust: Federal Realty stands out with 58 consecutive years of dividend increases, qualifying as a Dividend King, focusing on high-quality open-air retail and mixed-use properties, and despite a smaller portfolio, it excels in high-income markets, likely continuing its dividend growth.
- Realty Income: As the sixth-largest REIT globally, Realty Income boasts over $61 billion in real estate across nine countries, relying on stable net-leased properties for dependable monthly dividends, having raised its payout for over 30 years, and will continue to drive dividend growth through new investments.
- Prologis: Prologis, one of the largest REITs, manages over $215 billion in assets, primarily investing in warehouses that support the global economy, with $3.2 trillion in goods flowing through its distribution centers annually, and plans to invest $30 billion to $50 billion in data centers over the next decade, creating $25 billion in value for investors.
- Dividend Growth Potential: These three REITs have a strong history of dividend growth, with Federal Realty, Realty Income, and Prologis employing investment strategies that make them ideal long-term holds, providing sustainable returns for investors.
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Analyst Views on O
Wall Street analysts forecast O stock price to fall
11 Analyst Rating
3 Buy
7 Hold
1 Sell
Hold
Current: 65.990
Low
60.00
Averages
62.59
High
67.50
Current: 65.990
Low
60.00
Averages
62.59
High
67.50
About O
Realty Income Corporation is a real estate investment trust. The Company is engaged in acquiring and managing freestanding commercial properties that generate rental revenue under long-term net lease agreements with its commercial clients. It is engaged in a single business activity, which is the leasing of property to clients, generally on a net basis. That business activity spans various geographic boundaries and includes property types and clients engaged in various industries. The Company owns or holds interests in approximately 15,621 properties located in all 50 United States (U.S.) states, the United Kingdom, France, Germany, Ireland, Italy, Portugal, and Spain with clients doing business in 89 industries. Its property types include retail, industrial, gaming and others, such as agriculture and office. Its primary industry concentrations include grocery stores, convenience stores, dollar stores, drug stores, home improvement, restaurants-quick service and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Realty Income REIT Continues Steady Growth and Dividend Increases
- Consistent Dividend Growth: Realty Income has increased its monthly dividend every year since its public listing in 1994, achieving over 8% total operational return in 2025 despite high interest rate challenges, showcasing its strong investment resilience and stability.
- Expanded Investment Scale: The REIT invested $6.3 billion last year, exceeding the expected $4 billion, driving a 2.1% growth in adjusted funds from operations (AFFO) and achieving the high end of its AFFO range, reflecting its flexibility and selectivity in capital markets.
- Strategic Partnerships: The company formed a strategic partnership with GIC, planning to invest over $1.5 billion in build-to-suit logistics real estate developments, while launching its U.S. Private Fund Business, which has already raised $1.5 billion, further diversifying its capital sources.
- Future Growth Expectations: Realty Income anticipates investing $8 billion this year, supporting AFFO growth to a range of $4.38 to $4.42 per share, with nearly 9% total operational return expected, highlighting its appeal as a high-yield investment and potential for continued growth.
See More
Analysis of High-Yield Stock Investments
- Enterprise Products Partners: Operating the largest pipeline business in North America, Enterprise Products Partners generates reliable fee income and boasts a 7% distribution yield, providing consistent cash flows despite slow growth, making it suitable for income-seeking investors.
- Realty Income: As the largest net lease REIT with over 15,500 properties, Realty Income offers a 4.8% dividend yield supported by 30 years of annual growth, although its economic sensitivity due to 80% of rents coming from retail assets warrants caution.
- General Mills: A large packaged food company with a 127-year dividend history, General Mills emphasizes dividends with a 5.4% yield, yet faces challenges from shifting consumer preferences and budget tightening, presenting potential turnaround opportunities if navigated successfully.
- Investment Risks and Returns: While the high yields from Enterprise, Realty Income, and General Mills attract investors, their respective risks should not be overlooked, with Realty Income and Enterprise being more suitable for conservative investors, while General Mills appeals to those with a more aggressive investment approach.
See More
High-Yield Stock Analysis: Enterprise Products, Realty Income, and General Mills
- Enterprise Products Partners: With a 6% dividend yield, Enterprise Products Partners benefits from a reliable fee-based business model that ensures consistent cash flows even amid strong energy demand, supporting its high distributions.
- Realty Income Trust: As the largest net lease REIT with over 15,500 properties, Realty Income offers a 4.8% dividend yield; however, its economic sensitivity due to retail assets is mitigated by a robust 30-year track record of annual dividend growth.
- Challenges for General Mills: Known for its 5.4% dividend yield and 127 years of dividend payments, General Mills faces pressure from shifting consumer preferences towards healthier options, which may impact its stock performance during this investment year.
- Investor Strategy Considerations: While Enterprise Products and Realty Income are suited for conservative income investors, General Mills may appeal to those willing to take on more risk, given its potential for recovery amidst industry headwinds.
See More
Realty Income Corp. Achieves A-Rated Growth Score
- Consistent Dividend Growth: Realty Income Corp. excels in consecutive years of dividend growth, achieving top scores that reflect its stable cash flow and strong shareholder return capabilities, thereby boosting investor confidence.
- Revenue and EBITDA Growth: The company also demonstrates impressive performance in revenue and EBITDA growth, further solidifying its leadership position in the REIT sector and indicating future profitability and market competitiveness.
- Strong Overall Rating: According to Seeking Alpha's Quant system, Realty Income has received an overall rating of Strong Buy, reflecting market optimism about its future performance, despite some valuation concerns.
- Valuation Challenges: Although Realty Income's stock has jumped nearly 20% year-to-date, its C+ rating in price-to-sales multiple indicates valuation pressures that may affect its future investment appeal.
See More
Investment Potential of Realty Income and Coca-Cola
- Realty Income Performance: Realty Income's adjusted funds from operations (AFFO) reached $1.08 per share in Q4, with projections of $4.28 per share for 2025, indicating its stable earnings capacity and ongoing dividend payment ability, while maintaining a healthy occupancy rate of 98.9% in 2026 enhances investor confidence.
- Dividend Growth History: Realty Income has increased its dividend for 113 consecutive quarters, with expectations to reach 114 quarters in March, showcasing its strong cash flow and stable business model, attracting income-seeking investors.
- Coca-Cola's Growth Potential: As a Dividend King, Coca-Cola has raised its dividends for 64 consecutive years; despite concerns over sugary drink consumption, its robust product portfolio in the global beverage market and five consecutive years of revenue growth are expected to drive sales acceleration in the future.
- Profitability Improvement: Coca-Cola anticipates a net margin of 27.3% in 2025, marking its best performance in 15 years, combined with a 2.6% dividend yield, demonstrating strong profitability and appeal for long-term investors.
See More
Dividend Growth Insights: PepsiCo and Realty Income
- PepsiCo's Dividend King Status: With over five decades of dividend increases, PepsiCo boasts a 3.3% dividend yield, which is three times the 1.1% yield of the S&P 500, showcasing its strong competitive position in the consumer goods sector.
- Dividend Growth Potential: PepsiCo's average annual dividend growth rate of 7% indicates resilience, and despite facing challenges from changing consumer tastes and cost-conscious buyers, its long history of success warrants trust in management from dividend growth enthusiasts.
- Stable Income from Realty Income: As the largest net lease REIT with over 15,500 properties, Realty Income offers a 4.8% dividend yield backed by three decades of annual increases, highlighting its appeal for stable income generation.
- Dual Investment Choices: While PepsiCo is more focused on dividend growth, Realty Income's higher yield is equally attractive, suggesting that investors might consider purchasing both to achieve immediate income and future dividend growth.
See More
Realty Income REIT Continues Steady Growth and Dividend Increases
- Consistent Dividend Growth: Realty Income has increased its monthly dividend every year since its public listing in 1994, achieving over 8% total operational return in 2025 despite high interest rate challenges, showcasing its strong investment resilience and stability.
- Expanded Investment Scale: The REIT invested $6.3 billion last year, exceeding the expected $4 billion, driving a 2.1% growth in adjusted funds from operations (AFFO) and achieving the high end of its AFFO range, reflecting its flexibility and selectivity in capital markets.
- Strategic Partnerships: The company formed a strategic partnership with GIC, planning to invest over $1.5 billion in build-to-suit logistics real estate developments, while launching its U.S. Private Fund Business, which has already raised $1.5 billion, further diversifying its capital sources.
- Future Growth Expectations: Realty Income anticipates investing $8 billion this year, supporting AFFO growth to a range of $4.38 to $4.42 per share, with nearly 9% total operational return expected, highlighting its appeal as a high-yield investment and potential for continued growth.
See More
Analysis of High-Yield Stock Investments
- Enterprise Products Partners: Operating the largest pipeline business in North America, Enterprise Products Partners generates reliable fee income and boasts a 7% distribution yield, providing consistent cash flows despite slow growth, making it suitable for income-seeking investors.
- Realty Income: As the largest net lease REIT with over 15,500 properties, Realty Income offers a 4.8% dividend yield supported by 30 years of annual growth, although its economic sensitivity due to 80% of rents coming from retail assets warrants caution.
- General Mills: A large packaged food company with a 127-year dividend history, General Mills emphasizes dividends with a 5.4% yield, yet faces challenges from shifting consumer preferences and budget tightening, presenting potential turnaround opportunities if navigated successfully.
- Investment Risks and Returns: While the high yields from Enterprise, Realty Income, and General Mills attract investors, their respective risks should not be overlooked, with Realty Income and Enterprise being more suitable for conservative investors, while General Mills appeals to those with a more aggressive investment approach.
See More
High-Yield Stock Analysis: Enterprise Products, Realty Income, and General Mills
- Enterprise Products Partners: With a 6% dividend yield, Enterprise Products Partners benefits from a reliable fee-based business model that ensures consistent cash flows even amid strong energy demand, supporting its high distributions.
- Realty Income Trust: As the largest net lease REIT with over 15,500 properties, Realty Income offers a 4.8% dividend yield; however, its economic sensitivity due to retail assets is mitigated by a robust 30-year track record of annual dividend growth.
- Challenges for General Mills: Known for its 5.4% dividend yield and 127 years of dividend payments, General Mills faces pressure from shifting consumer preferences towards healthier options, which may impact its stock performance during this investment year.
- Investor Strategy Considerations: While Enterprise Products and Realty Income are suited for conservative income investors, General Mills may appeal to those willing to take on more risk, given its potential for recovery amidst industry headwinds.
See More
Realty Income Corp. Achieves A-Rated Growth Score
- Consistent Dividend Growth: Realty Income Corp. excels in consecutive years of dividend growth, achieving top scores that reflect its stable cash flow and strong shareholder return capabilities, thereby boosting investor confidence.
- Revenue and EBITDA Growth: The company also demonstrates impressive performance in revenue and EBITDA growth, further solidifying its leadership position in the REIT sector and indicating future profitability and market competitiveness.
- Strong Overall Rating: According to Seeking Alpha's Quant system, Realty Income has received an overall rating of Strong Buy, reflecting market optimism about its future performance, despite some valuation concerns.
- Valuation Challenges: Although Realty Income's stock has jumped nearly 20% year-to-date, its C+ rating in price-to-sales multiple indicates valuation pressures that may affect its future investment appeal.
See More
Investment Potential of Realty Income and Coca-Cola
- Realty Income Performance: Realty Income's adjusted funds from operations (AFFO) reached $1.08 per share in Q4, with projections of $4.28 per share for 2025, indicating its stable earnings capacity and ongoing dividend payment ability, while maintaining a healthy occupancy rate of 98.9% in 2026 enhances investor confidence.
- Dividend Growth History: Realty Income has increased its dividend for 113 consecutive quarters, with expectations to reach 114 quarters in March, showcasing its strong cash flow and stable business model, attracting income-seeking investors.
- Coca-Cola's Growth Potential: As a Dividend King, Coca-Cola has raised its dividends for 64 consecutive years; despite concerns over sugary drink consumption, its robust product portfolio in the global beverage market and five consecutive years of revenue growth are expected to drive sales acceleration in the future.
- Profitability Improvement: Coca-Cola anticipates a net margin of 27.3% in 2025, marking its best performance in 15 years, combined with a 2.6% dividend yield, demonstrating strong profitability and appeal for long-term investors.
See More
Dividend Growth Insights: PepsiCo and Realty Income
- PepsiCo's Dividend King Status: With over five decades of dividend increases, PepsiCo boasts a 3.3% dividend yield, which is three times the 1.1% yield of the S&P 500, showcasing its strong competitive position in the consumer goods sector.
- Dividend Growth Potential: PepsiCo's average annual dividend growth rate of 7% indicates resilience, and despite facing challenges from changing consumer tastes and cost-conscious buyers, its long history of success warrants trust in management from dividend growth enthusiasts.
- Stable Income from Realty Income: As the largest net lease REIT with over 15,500 properties, Realty Income offers a 4.8% dividend yield backed by three decades of annual increases, highlighting its appeal for stable income generation.
- Dual Investment Choices: While PepsiCo is more focused on dividend growth, Realty Income's higher yield is equally attractive, suggesting that investors might consider purchasing both to achieve immediate income and future dividend growth.
See More
