📊 Top 5 REITs for 2025

REITs are UNDERVALUED 🚀

I love buying undervalued dividend stocks.

Did you know that REITs are currently trading at one of their lowest valuations since the global financial crisis? (17 years ago!)

Last time this happened, REITs nearly doubled the performance of the S&P 500 over the next 3 years.

This is an opportunity that has to be taken advantage of.

Here are the top 5 REITs to consider for your portfolio in 2025:

1. Alexandria Real Estate Equities (ARE) 🏢

Alexandria focuses on life science buildings in key markets like Boston, San Francisco, and New York City. Despite recent underperformance, it remains a high-quality REIT with a promising outlook.

• Current Price: $95.52 per share

• Dividend Yield: 5.54%

• 5-YR Dividend Growth Rate: 5.35%

• Dividend Growth: 14 consecutive years of increases

• Tenant Quality: 92% investment-grade or publicly traded large-cap tenants

• Valuation: Intrinsic value estimate of $122 per share, suggesting 17% upside

Alexandria’s strong tenant base, history of dividend growth, and solid credit rating make it a compelling long-term investment.

2. VICI Properties (VICI) 🎰

VICI Properties is a specialized REIT focused on entertainment and hospitality real estate, including major properties on the Las Vegas Strip.

• Current Price: $30.76 per share

• Dividend Yield: 5.68%

• 5-YR Dividend Growth Rate: 7.9%

• Strength in Down Markets: Collected 100% of rent in 2020

• Key Advantage: 100% of contracts are triple-net leases (tenant pays for property taxes, insurance, and maintenance in addition to rent)

• Inflation Protection: 50% of rental revenue tied to CPI escalations, increasing to 96% by 2035

• Valuation: Undervalued with an estimated intrinsic value estimate of $34 per share

VICI’s inflation-hedged contracts and exposure to the growing Las Vegas tourism market make it an attractive REIT for 2025.

3. NNN REIT (NNN) 🏪

NNN REIT specializes in triple-net leased properties, meaning tenants cover most operational expenses, creating steady and predictable income.

• Current Price: $41.20 per share

• Dividend Yield: 5.68%

• 5-YR Dividend Growth Rate: 2.42% (slower than I typically like to see)

• Dividend Growth: 35 consecutive years of increases

• Portfolio: 3,549 properties across fast food, gas stations, and car washes

• Occupancy Rate: 99.3%, with minimal lease expirations in 2025

• Valuation: Intrinsic value estimate of $47.80 per share, suggesting a buy opportunity

With its low-risk tenant model, diversification, and long dividend history, NNN REIT is a great pick for income-focused investors.

4. Agree Realty Corporation (ADC) 🛒

ADC has been called the “new Realty Income (O)” and is a fast-growing retail REIT with a strong tenant portfolio.

• Current Price: $71.35 per share

• Dividend Yield: 4.26%

• 5-YR Dividend Growth Rate: 5.68%

• Dividend Frequency: Pays dividends monthly

• Tenant Quality: 68% investment-grade tenants, higher than Realty Income (O)

• Fast Growing: 5 YR AFFO CAGR of 6.51% (Faster than most REITs)

• Valuation: Slightly overvalued, but strong growth potential

With monthly dividends, high-quality tenants, and steady growth, ADC remains a solid choice for long-term investors.

5. Realty Income (O) 💰

Realty Income is one of the most well-known REITs, often called "The Monthly Dividend Company," due to its reliable, growing dividends.

• Current Price: $546.52 per share

• Dividend Yield: 5.69%

• 5-YR Dividend Growth Rate: 3.55%

• Dividend Growth: 28 consecutive years of increases

• Portfolio: Over 13,000 properties across retail, industrial, and gaming sectors

• Quality: Realty Income has a credit rating that is among the top of S&P 500 REITs

• Key Advantage: Great returns on a risk/reward ratio basis (pictured below)

• Valuation: Undervalued with an estimated intrinsic value of $66.09

With its reliable monthly dividends and strong tenant base, Realty Income remains a top-tier REIT for long-term investors.

Each of these REITs offers a unique value proposition, whether it’s Alexandria’s life science focus, NNN’s ultra-stable rental income, VICI’s inflation protection, ADC’s high-growth retail exposure, or Realty Income’s legendary monthly dividends.

Be fearful when others are greedy, and be greedy when others are fearful.

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Check out these resources:

Tickerdata 🚀 (My automated spreadsheets and instant stock data for Google Sheets!)

Interactive Brokers 💰 (My favorite place to buy and sell stocks all around the world!)

Seeking Alpha 🔥 (My favorite investment research platform!)

The Dividend Report 📊 (Free Newsletter for Straightforward Dividend Stock News)

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Other News:

At the start of every month, I send out a newsletter to my paid newsletter subscribers with a list/spreadsheet of all the dividend stocks that I believe to be currently undervalued.

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That’s all for now!

See you next week!

Dividendology 🚀