Real estate investing can be an excellent way for investors to diversify their portfolios, hedge against inflation and generate capital gains and cash flow. However, owning and operating physical real estate assets can be too expensive and difficult for most investors. Instead, an excellent way to add diversified real estate to your portfolio is to buy real estate investment trusts, or REITs.
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REITs are companies that typically own many different properties, specializing in residential, commercial or specialty real estate. REITs also tend to have high dividend yields. Here are 10 of the best REITs to buy in 2026, according to Morningstar:
| REIT | Dividend yield | Implied upside* |
| American Tower Corp. (ticker: AMT) | 4.0% | 28% |
| Realty Income Corp. (O) | 5.2% | 21% |
| Public Storage (PSA) | 4.3% | 12% |
| Crown Castle Inc. (CCI) | 5.0% | 35% |
| Extra Space Storage Inc. (EXR) | 4.8% | 18% |
| AvalonBay Communities Inc. (AVB) | 4.3% | 33% |
| Equity Residential (EQR) | 4.7% | 33% |
| SBA Communications Corp. (SBAC) | 2.5% | 18% |
| Essex Property Trust Inc. (ESS) | 4.2% | 24% |
| Kimco Realty Corp. (KIM) | 4.6% | 20% |
*From April 6 closing price, based on Morningstar fair value estimates.
American Tower Corp. (AMT)
American Tower is a specialized REIT that operates the world’s largest independent portfolio of wireless communications and broadcast towers. Analyst Michael Hodel says American Tower has a geographically diversified wireless tower business complemented by a small U.S. data center business. Hodel says the tower business will generate mid-single-digit revenue growth over time thanks to steady demand growth, but he says the REIT will likely need a major acquisition to produce growth above that range. Hodel also says American Tower has remained disciplined and avoided suboptimal acquisitions. Morningstar has a “buy” rating and $225 fair value estimate for AMT stock, which closed at $176.14 on April 6.
Realty Income Corp. (O)
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 property expenses, including real estate taxes, maintenance and building insurance. Realty Income has a 5.2% dividend yield and makes monthly dividend payments, making it an attractive income source. Analyst Kevin Brown says Realty’s growth outlook will rely on acquisitions along the lines of its recent expansions into Europe and Mexico. Morningstar has a “buy” rating and $75 fair value estimate for O stock, which closed at $61.83 on April 6.
Public Storage (PSA)
Public Storage is the largest owner of self-storage facilities in the U.S. The company also has an insurance business that allows customers to cover any stored goods and allows other self-storage property owners to provide tenant insurance to their customers as well. Brown says Public Storage’s net operating income and funds from operations may decline in 2026, but the company is positioned for solid growth over the long term. He says Public Storage’s self-storage centers are located within five miles of attractive, densely populated urban areas. Morningstar has a “buy” rating and $316 fair value estimate for PSA stock, which closed at $280.89 on April 6.
Crown Castle Inc. (CCI)
Crown Castle International is a specialty REIT that owns and operates wireless communications towers. In March 2025, Crown Castle agreed to sell its fiber business to Zayo Group for $8.5 billion. Two months later, the company cut its dividend by 32%, but Crown Castle still has an attractive 5% yield after the cut. In fact, its dividend represents one of the highest yields on this list. Hodel says bailing on the fiber business was the right call and will help the company fund its dividend. Morningstar has a “buy” rating and $117 fair value estimate for CCI stock, which closed at $86.57 on April 6.
Extra Space Storage Inc. (EXR)
Extra Space Storage is one of the largest publicly traded self-storage REITs. Brown says self-storage REITs will face net operating income and funds from operations pressures in 2026, but he says Extra Space will return to growth in the long term. He says Extra Space’s portfolio is focused in high-income urban areas, and its third-party management business is the largest in the U.S. Brown says the management business has helped Extra Space improve its data sophistication and expand its footprint without requiring significant capital. Morningstar has a “buy” rating and $158 fair value estimate for EXR stock, which closed at $134.06 on April 6.
[SEE: 9 Highest Dividend-Paying Stocks in the S&P 500]
AvalonBay Communities Inc. (AVB)
AvalonBay Communities is a multifamily residential REIT that specializes in upscale apartment communities. Brown says AvalonBay’s project development pipeline has helped the company continue to grow its funds from operations even as its net operating income growth has slowed. He says the REIT owns high-quality, multifamily properties in coastal urban and suburban markets that have demographics that support strong rent growth and high occupancy rates, including New York, New England and New Jersey. In addition to high job growth, Brown says these markets have decreasing homeownership rates. Morningstar has a “buy” rating and $221 fair value estimate for AVB stock, which closed at $166.47 on April 6.
Equity Residential (EQR)
Equity Residential is a multifamily residential REIT that owns and operates a diversified portfolio of apartment properties. Brown says Equity’s low net operating income growth and high expense growth as of late will both return to historically normal levels within the next several quarters. He says Equity has focused on improving its portfolio by divesting southern and inland properties and focusing on high-growth core markets such as Los Angeles, San Francisco and San Diego. Brown says high-priced single-family housing in these markets creates demand for apartments. Morningstar has a “buy” rating and $80 fair value estimate for EQR stock, which closed at $60.06 on April 6.
SBA Communications Corp. (SBAC)
SBA Communications is a specialized REIT that owns and operates a global wireless communications tower network. The stock jumped nearly 20% on April 2 on reports SBA has received takeover interest from large infrastructure funds and is considering its options, but a deal is far from certain. Hodel says SBA has been more conservative in pursuing acquisitions than many of its peers in recent years, but the company’s efforts to expand into Central America should add value over time. SBA has also been aggressively repurchasing its stock. Morningstar has a “buy” rating and $250 fair value estimate for SBAC stock, which closed at $212.42 on April 6.
Essex Property Trust Inc. (ESS)
Essex Property Trust is a residential REIT that owns and operates multifamily properties in California and the Pacific Northwest. Brown says the market fundamentals in the West Coast high-end apartment market have been solid. He says Los Angeles, San Francisco, San Diego and other core Essex markets draw younger populations of residents, and he anticipates those markets will maintain job and income growth above the U.S. national average. Brown says Essex’s development pipeline is currently small, but it will add additional value nonetheless. Morningstar has a “buy” rating and $308 fair market estimate for ESS stock, which closed at $247.71 on April 6.
Kimco Realty Corp. (KIM)
Kimco Realty is a retail REIT that is one of the largest U.S. owners and operators of neighborhood and community shopping centers. The REIT has posted an impressive total return of 12% in a weak market so far in 2026. Brown says Kimco’s shopping centers are geographically diversified and should fuel solid net operating income growth. He says Kimco’s aggressive efforts to reshape its portfolio since 2010 have significantly improved the efficiency of its business. Today, Kimco generates 80% of its annual base rent from major metropolitan markets. Morningstar has a “buy” rating and $27 fair value estimate for KIM stock, which closed at $22.46 on April 6.
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10 of the Best REITs to Buy for 2026 originally appeared on usnews.com
Update 04/07/26: This story was published at an earlier date and has been updated with new information.