Looking for the best REITs to invest in this month? This comprehensive guide explores the top-performing Real Estate Investment Trusts in the USA for February 2025, including both individual REITs and REIT ETFs. Whether you're seeking high yields or strong total returns, you'll find valuable insights to help make informed investment decisions.
What are REITs?
Real Estate Investment Trusts (REITs) are companies that own, operate, or finance income-producing real estate properties. They provide a way for individual investors to earn a share of the income produced through commercial real estate ownership without having to buy commercial real estate directly. REITs are required by law to distribute at least 90% of their taxable income to shareholders annually in the form of dividends.
Before diving into specific recommendations, consider checking out our guide on what ETFs are and how they work, as many investors access REITs through ETF investments. For those new to investing, our stock market basics course guide can help you understand the fundamentals.
Best Individual REITs in USA This Month (February 2025)
1. ACRES Commercial Realty Corp. (NYSE: ACR)
ACRES Commercial Realty leads the pack with an impressive 92.10% 1-year total return. This REIT focuses on commercial real estate lending and has shown remarkable performance in the current market environment.
- Total Return (1-year): 92.10%
- Sector: Commercial Real Estate Finance
- Market Position: Industry Leader in Commercial Lending
2. Welltower Inc. (NYSE: WELL)
Welltower has emerged as a top performer with a 63.42% 1-year total return. This healthcare REIT specializes in senior housing, post-acute care, and outpatient medical properties.
- Total Return (1-year): 63.42%
- Sector: Healthcare Real Estate
- Portfolio: Senior Housing, Medical Offices, Life Science
3. Vornado Realty Trust (NYSE: VNO)
Vornado has delivered strong performance with a 60.25% 1-year total return. The REIT specializes in office and retail properties in key urban markets.
- Total Return (1-year): 60.25%
- Sector: Office and Retail
- Key Markets: New York City, Chicago, San Francisco
4. Medical Properties Trust Inc. (NYSE: MPW)
Medical Properties Trust has shown strong recovery with a 30.44% 1-year total return. This healthcare REIT focuses on hospital facilities and has maintained steady performance.
- Total Return (1-year): 30.44%
- Sector: Healthcare Facilities
- Portfolio: Hospitals and Medical Centers
5. TPG RE Finance Trust, Inc. (NYSE: TRTX)
TPG RE Finance Trust rounds out the top 5 with a 60.04% 1-year total return. This commercial real estate finance company has demonstrated strong performance in lending.
- Total Return (1-year): 60.04%
- Sector: Commercial Real Estate Finance
- Focus: Commercial Property Lending
High-Yield REITs to Consider
6. ARMOUR Residential REIT (NYSE: ARR)
ARMOUR Residential REIT offers an impressive 15.3% dividend yield, making it attractive for income-focused investors.
- Dividend Yield: 15.3%
- Sector: Residential Mortgage
- Investment Focus: Mortgage-Backed Securities
7. AGNC Investment Corp. (NYSE: AGNC)
AGNC Investment Corp. provides a substantial 14.3% dividend yield, appealing to income-seeking investors.
- Dividend Yield: 14.3%
- Sector: Mortgage REITs
- Portfolio: Agency Mortgage-Backed Securities
8. New York Mortgage REIT (NYSE: NYMT)
New York Mortgage REIT offers a high 13.2% dividend yield with a focus on residential mortgage assets.
- Dividend Yield: 13.0%
- Sector: Residential Mortgage
- Geographic Focus: New York Metropolitan Area
9. Arbor Realty Trust (NYSE: ABR)
Arbor Realty Trust provides a strong 12.5% dividend yield while maintaining a diverse lending portfolio.
- Dividend Yield: 12.5%
- Sector: Commercial Real Estate Finance
- Specialization: Multifamily and Commercial Lending
Notable REIT Mentions
10. American Tower Corp (NYSE: AMT)
American Tower has demonstrated exceptional long-term performance with a total return of 3,683.65% since February 1996.
- Recent Performance: 14.81% gain (May 2024)
- Long-term Return: 3,683.65% (since 1996)
- Sector: Communications Infrastructure
11. Realty Income Corp. (NYSE: O)
Known as "The Monthly Dividend Company," Realty Income remains a top choice for steady income investors.
- Payment Frequency: Monthly dividends
- Sector: Retail Properties
- Track Record: Consistent dividend growth
12. Crown Castle Inc. (NYSE: CCI)
Crown Castle continues to benefit from the growing demand for communications infrastructure.
- Sector: Communications Infrastructure
- Growth Driver: 5G Network Expansion
- Portfolio: Towers, Small Cells, Fiber
Summary of the Best REITs in USA This Month (February 2025)
| REIT Name | Ticker | Total Return/Yield | Sector |
|---|---|---|---|
| ACRES Commercial | ACR | 92.10% (Return) | Commercial Finance |
| Welltower Inc. | WELL | 63.42% (Return) | Healthcare |
| Vornado Realty | VNO | 30.44% (Return) | Office/Retail |
| Medical Properties | MPW | 61.45% (Return) | Healthcare |
| TPG RE Finance | TRTX | 60.04% (Return) | Commercial Finance |
| ARMOUR Residential | ARR | 15.3% (Yield) | Residential Mortgage |
| AGNC Investment | AGNC | 14.3% (Yield) | Mortgage |
| New York Mortgage | NYMT | 13.0% (Yield) | Residential Mortgage |
| Arbor Realty Trust | ABR | 12.5% (Yield) | Commercial Finance |
| American Tower | AMT | 14.81% (Recent Gain) | Communications |
| Realty Income | O | Monthly Dividend | Retail |
| Crown Castle | CCI | Growth Stock | Communications |
Final Words
The REIT market in February 2025 offers diverse opportunities for both growth and income investors. While some REITs have shown exceptional total returns, others provide attractive dividend yields. Remember to consider your investment goals, risk tolerance, and the broader market conditions when selecting REITs for your portfolio. For those new to investing, consider using investment apps designed for beginners to start your REIT investment journey.
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Frequently Asked Questions About REITs
What are the benefits of investing in REITs?
REITs offer several benefits including high dividend yields (required to pay out 90% of taxable income), portfolio diversification, liquidity (easily bought and sold on major exchanges), professional management, and potential for long-term capital appreciation. They also provide a way to invest in real estate without directly owning property.
Are high-yield REITs safe investments?
High-yield REITs can carry more risk than lower-yielding REITs. While the higher yields are attractive, they may indicate underlying issues such as financial stress or unsustainable payout ratios. It's important to analyze factors like debt levels, payout ratios, and earnings stability before investing in high-yield REITs.
What factors should I consider before investing in REITs?
Key factors to consider include the REIT's sector focus (residential, commercial, healthcare, etc.), financial health (debt levels, occupancy rates), management quality, dividend history and sustainability, growth potential, and market conditions. Also consider the REIT's geographic focus, tenant mix, and how it fits into your overall investment strategy.
How do interest rates affect REIT performance?
REITs are generally sensitive to interest rate changes. Rising rates can increase borrowing costs and potentially reduce property values, while falling rates often benefit REITs by lowering borrowing costs and making their dividend yields more attractive to investors. However, the impact varies depending on the REIT's sector, debt levels, and business model.
