REIT Property Sectors

We already discussed the two main types of real estate investment trusts – equity and mortgage – on the “What Is a REIT” page. But REIT-dom is so much more amazingly, profitably complex than that. That’s why the following information explores the different property specialties they can and do take.

It’s important to note that these categories are all U.S.-recognized sectors. Other countries that have established their own REIT programs (as listed here) can and do build off these as they see fit. In addition, you’ll only find publicly traded stocks listed on the major U.S. exchanges accounted for, since those are what we tend to recommend.

Apartment REITs

No. of REITs: 11 | Sector Market Cap: $127.57B | Avg. Dividend Yield: 3.80% | Avg. P/FFO: 16.63x

Apartment REITs, or multi-family housing REITs, operate apartment buildings, renting out individual units as living spaces to tenants who can’t afford to buy a home or otherwise choose not to. They do well when the housing market is out of favor, though they can also benefit from the opposite. A booming economy is a booming economy and, again, not everyone wants to buy.

Apartment Income (AIRC)
AvalonBay (AVB)
BRT Apartments (BRT)
Camden Property (CPT)
Centerspace (CSR)
Equity Residential (EQR)
Essex Property (ESS)
Independence Realty (IRT)
Mid-America (MAA)
NexPoint Residential (NXRT)
UDR (UDR)

Billboard REITs

No. of REITs: 2 | Sector Market Cap: $13.95B | Avg. Dividend Yield: 5.35% | Avg. P/FFO: 12.47x

Billboard REITs own the kind of large advertising displays you see along any given highway across the U.S., both the traditional ones and the digital version that’s becoming more prevalent. They own the actual structures involved but tend to rent the land beneath them from whoever owns it. They can also rent signage space elsewhere, such as the New York City subway system.

Lamar Advertising Company (LAMR)
Outfront Media (OUT)

Cell Tower REITs

No. of REITs: 3 | Sector Market Cap: $177.97B | Avg. Dividend Yield: 3.27% | Avg. P/FFO: 17.60x

Cell tower REITs own the physical structures that wireless carriers such as Verizon, AT&T, and Sprint hang their cell sites on. The REITs merely offer space for these cell sites, which relay information from connected devices such as phones, tablets, computers, and “smart” devices to their intended sources. The wireless carriers handle their own installation and maintenance

American Tower (AMT)
Crown Castle (CCI)
SBA Communications (SBAC)

Data Center REITs

No. of REITs: 3 | Sector Market Cap: $169.51B | Avg. Dividend Yield: 2.47% | Avg. P/FFO: 24.93x

Data center REITs run specialized facilities fitted with enormous generators, powerful cooling equipment, intense digital security systems, and plenty of rack space, all designed to house computer servers and network equipment. These critical facilities are expensive to operate, so tenants of all shapes and sizes pay a pretty monthly penny to store their apparatuses there.

Digital Realty (DLR)
Equinix (EQIX)
Iron Mountain (IRM)

Diversified REITs

No. of REITs: 1 | Sector Market Cap: $12.35B | Avg. Dividend Yield: 7.60% | Avg. P/FFO: 10.98x

Safehold (SAFE)

Farmland REITs

No. of REITs: 2 | Sector Market Cap: $1.01B | Avg. Dividend Yield: 3.15% | Avg. P/FFO:37.03x

Farmland REITs buy up choice pieces of farmland, then rent those fields, orchards, and/or vineyards out to qualified organizations or families – sometimes to the original owners – to do the actual sowing, growing, harvesting, selling, and shipping. Leases for land that produces row crops (wheat, corn, etc.) typically last 1-3 years, while other crops might warrant 10-year terms.

Farmland Partners (FPI)
Gladstone (LAND)*

*Includes both cannabis and gaming

Healthcare REITs

No. of REITs: 16 | Sector Market Cap: $117.80B | Avg. Dividend Yield: 5.42% | Avg. P/FFO: 13.24x

Healthcare REITs rent out specialized real estate to hospitals, medical offices, assisted living facilities, senior living facilities, and memory care facilities. So their success is obviously tied to how well the healthcare system does in a business sense. Higher demand for healthcare services, including by way of an aging population, tends to mean higher profits for healthcare REITs.

American Healthcare REIT (AHR)
CareTrust REIT (CTRE)
Community Healthcare Trust (CHCT)
Diversified Healthcare Trust (DHC)
Global Medical REIT (GMRE)
Healthcare Realty Trust (HR)
Healthpeak Properties (DOC)
LTC Properties (LTC)
Medical Properties Trust (MPW)
National Health Investors (NHI)
Omega Healthcare Investors (OHI)
Sabra Health Care (SBRA)
Strawberry Fields REIT (STRW)
Universal Health Realty Income Trust (UHT)
Welltower (WELL)
Ventas (VTR)

Industrial REITs

No. of REITs: 13 | Sector Market Cap: $145.00B | Avg. Dividend Yield: 3.57% | Avg. P/FFO: 16.51x

Industrial REITs invest in real estate used for storage, distribution, manufacturing, production, and research and development. Though these days, it’s mostly storage and distribution. The strength of the e-commerce market is largely determining the strength of the industrial REIT sector, especially since the Covid-19 shutdowns, which sent online shopping into hyper speed

Americold Realty Trust (COLD)
EastGroup Properties (EGP)
First Industrial Realty Trust (FR)
Gladstone Commercial Corp. (GOOD)
Industrial Logistics Properties Trust (ILPT)
Innovative Industrial Properties (IIPR)
Lexington Realty (LXP)
NewLake Capital Partners (NLCP)
Plymouth Industrial (PLYM)
Prologis (PLD)
Rexford Industrial (REXR)
STAG Industrial (STAG)
Terreno Realty (TRNO)

Lodging REITs

No. of REITs: 11 | Sector Market Cap: $33.75B | Avg. Dividend Yield: 4.33 | Avg. P/FFO: 8.74x

Lodging REITs own and/or manage hotels and resorts. Some rent out entire properties or portfolios of properties to entities like Hyatt, Hilton, and Marriott. Others lease out their own rooms right to individual guests or groups. Lodging REITs’ profits tend to be very tied to the economy, since people tend to travel more and corporations tend to spend more in boomtimes.

Apple Hospitality (APLE)
Braemar Hotels (BHR)
Chatham Lodging (CLDT)
Host Hotels (HST)
Park Hotels (PK)
Pebblebrook Hotel (PEB)
RLJ Lodging (RLJ)
Ryman Hospitality (RHP)
Summit Hotels (INN)
Sunstone Hotels (SHO)
Xenia Hotels (XHR)

Mall REITs

No. of REITs: 5 | Sector Market Cap: $53.35B | Avg. Dividend Yield: 3.00% | Avg. P/FFO: 11.81x

Mall REITs own malls and sometimes outlet centers, where retailers rent space to sell their goods. Traditionally, these tenants were department stores such as JCPenney and Boscov’s, along with individual apparel, toy, and candy makers, restaurants and fast-food entities. These days though, many successful mall REITs are heavily adding experiential offerings as well.

CBL & Associates Properties (CBL)
Seritage Growth Properties (SRG)
Simon Property Group (SPG)
Tanger Factory Outlet Centers (SKT)
The Macerich Company (MAC)

Note: Pennsylvania Real Estate Investment Trust (PRET) isn’t included in the following list since it’s a penny stock, ineligible to trade on any major U.S. exchange at last check.

Manufactured Housing REITs

No. of REITs: 3 | Sector Market Cap: $28.60B | Avg. Dividend Yield: 3.33% | Avg. P/FFO: 18.90.x

Manufactured housing REITs own land designed for mobile homeowners to “park” their houses on. Unlike the stereotypical image that may come to mind, these properties are well-kept communities that can even offer amenities. Manufactured housing REITs don’t own the homes themselves or handle any home or lot-specific maintenance, which cuts down on their costs.

Equity Lifestyle (ELS)
Sun Communities (SUI)
UMH Properties (UMH)

Mortgage REITs

No. of REITs: 19 | Sector Market Cap: $25.23B | Avg. Dividend Yield: 11.41% | Avg. P/FFO: 9.14x

Mortgage REITs, or mREITs, provide financial services for commercial and/or residential real estate owners and the construction companies that supply them. They operate much like banks, as either A) pure balance sheet lenders that originate and hold loans or B) balance sheet/conduit lenders that originate loans for both their own books and to sell into securitized markets.

Annaly Capital (NLY)
Apollo Commercial Real Estate (ARI)
Arbor Realty (ABR)
Ares Commercial (ACRE)
AFC Gamma (AFCG)
Blackstone Mortgage (BXMT)
BrightSpire Capital (BRSP)
Chicago Atlantic Real Estate Finance (REFI)
Granite Point Mortgage Trust (GPMT)
KKR Real Estate Finance Trust (KREF)
Ladder Capital (LADR)
New York Mortgage Trust (NYMT)
NexPoint Real Estate (NREF)
Ready Capital (RC)
Redwood Trust (RWT)
Rithm Capital (RITM)
Sachem Capital (SACH)
Starwood Property Trust (STWD)
TPG RE Finance Trust (TRTX)

Net-Lease REITs

No. of REITs: 15 | Sector Market Cap: $124.37B | Avg. Dividend Yield: 5.91% | Avg. P/FFO: 13.21x

Net-lease REITs usually operate with long-term contracts of 10-25 years. These agreements are triple-net, which means tenants pay all property management expenses, from taxes to insurance to maintenance. Net-lease REITs tend to attract high-quality tenants – often retailers, restaurants, or offices, but also casinos – that want the most autonomy possible without actual ownership.

Agree Realty (ADC)
Alpine Income (PINE)
Broadstone (BNL)
EPR Properties (EPR)
Essential Properties (EPRT)
Four Corners Property (FCPT)
Gaming and Leisure Properties (GLPI)
Getty Realty (GTY)
Global Net Lease (GNL)
National Retail (NNN)
NetStreit (NTST)
Postal Realty (PSTL)
Realty Income (O)
VICI Properties (VICI)
W. P. Carey (WPC)

Office REITs

No. of REITs: 14 | Sector Market Cap: $60.90B | Avg. Dividend Yield: 4.83% | Avg. P/FFO: 8.77x

Office REITs invest in office buildings, then open those properties for businesses to run their desk jobs out of, whether from the entire building or just a portion of it. They tend to work with long-term leases in cities of significant size. And, due to higher improvement and leasing costs, their buildings require considerably more money to manage than many other property types.

Alexandria Real Estate (ARE)
Boston Properties (BXP)
Brandywine Realty (BDN)
City Office REIT (CIO)
Corporate Office Properties (OFC)
Cousins Properties (CUZ)
Easterly Government (DEA)
Empire State Realty (ESRT)
Highwoods Properties (HIW)
Kilroy (KRC)
Office Properties (OPI)
Piedmont Realty (PDM)
SL Green Realty (SLG)
Vornado Realty (VNO)

Self-Storage REITs

No. of REITs: 5 | Total Sector Market Cap: $97.49B | Avg. Dividend Yield: 4.24% | Avg. P/FFO: 16.42x

Self-storage REITs run self-storage facilities for individuals, families, or businesses with a little too much stuff to fit in the home or office. These facilities are cheap to build and easy to manage since they don’t require significant plumbing or any amenities whatsoever. Self-storage REITs also tend to have very loyal customers who pay month-to-month but stay for years and years.

CubeSmart (CUBE)
Extra Space Storage (EXR)
Global Self Storage (SELF)
National Storage Affiliates Trust (NSA)
Public Storage (PSA)

Shopping Center REITs

No. of REITs: 11 | Total Sector Market Cap: $59.92B | Avg. Dividend Yield: 3.67% | Avg. P/FFO: 12.48x

Shopping center REITs own retail strip malls and lease them to a wide range of tenants, from big-name retailers you find in malls like Ralph Lauren and the Loft, to department stores like Walmart or Macy’s, to experiential companies like escape rooms. Shopping center REIT properties include at least one anchor tenant, such as a grocer, pharmacy, or big-box store.

Acadia Realty (AKR)
Brixmor Property Group (BRX)
Federal Realty Investment (FRT)
Kimco Realty (KIM)
Kite Realty Group (KRG)
Phillips Edison (PECO)
Regency Centers (REG)
Retail Opportunity Investments (ROIC)
SITE Centers (SITC)
Urban Edge Properties (UE)
Whitestone REIT (WSR)

Single-Family Rental REITs

No. of REITs: 2 | Total Sector Market Cap: $34.76B |Avg. Dividend Yield: 2.95% | Avg. P/FFO:19.85x

Single-family rental REITs own whole houses, which they then rent out to (you guessed it) individual families. These companies typically operate on the higher end of housing, offering 3-4 bedroom single-family homes for an average $2,000 per month to customers who have higher credit scores. Single-family REITs right now tend to focus on the Sunbelt to build and buy.

American Homes 4 Rent (AMH)
Invitation Homes (INVH)

Timber REITs

No. of REITs: 3 | Total Sector market Cap: $30.72B | Avg. Dividend Yield: 3.30% | Avg. P/FFO: 17.60x

Timberland REITs do rent out property, but they mainly make their profits by growing trees and selling the byproducts, whether through straight-up timber or goods they manufacture at the mills some of them own. Pureplay timberland REITs’ profits are naturally more tied to short-term commodity fluctuations, whereas those that manufacture are usually a bit more stable.

PotlatchDeltic (PCH)
Rayonier (RYN)
Weyerhaeuser (WY)

As evidenced by the list above, real estate investment trusts are a very diverse asset class. And, truth be told, there are more REITs out there than those listed above since examples exist that don’t quite fit into any of the categories above. Some REITs invest across multiple categories, while others make their own unique niches. And more can (and do) always spring up still.

Consider how offices, apartments, retail, and industrial REITs have been in existence for decades… yet several of their fellow sectors have only arrived on the scene this century. Real estate investment trusts as a whole have proven their ability to expand in every way possible since their humble beginnings in 1960. That’s why we believe we could see still see more sectors emerge from here.

If we can have gaming REITs and cannabis REITs –subsets of the net-lease and industrial categories, respectively – then why not REITs that rent out airports, stadiums, or amusement parks too?

Already, China has sectors the U.S. never thought of, such as toll roads and waste treatment plants. The possibilities aren’t exactly endless when it comes to these corporate landlords, but… there’s still clearly a lot of room to roam in REIT-dom.

We’ll keep you up to date on new developments as they come just as long as you stick with us!