Investors looking for high dividend yields often turn to real estate investment trusts, or REITs. REITs exist virtually entirely to generate income that is then substantially completely returned to shareholders via dividends.
In this way, REITs can be an excellent way to generate passive streams of income.
This article will discuss 3 high-yield REITs that have yields above 4% and sustainable dividends for the long run, making them attractive for income investors.
STAG Industrial (STAG)
STAG Industrial is an owner and operator of industrial real estate. It is focused on single-tenant industrial properties and has 563 buildings across 41 states in the United States. STAG Industrial went public in 2011.
STAG Industrial executes a deep quantitative and qualitative analysis on its tenants. As a result, it has incurred credit losses that have been less than 0.1% of its revenues since its IPO. As per the latest data, 53% of the tenants are publicly rated and 31% of the tenants are rated “investment grade.” The company typically does business with established tenants to reduce risk.
In mid-February, STAG Industrial reported (2/11/26) results for the fourth quarter of 2025. Core FFO per share grew 8% over the prior year’s quarter, from $0.61 to $0.66, beating the analysts’ consensus by $0.02, thanks to hikes in rent rates. Net operating income grew 5% over the prior year’s quarter while the occupancy rate improved sequentially from 95.8% to 96.4%.
We expect core FFO per share of $2.60 in 2026. STAG Industrial has proved fairly resilient to the environment of elevated interest rates in recent years thanks to its decent balance sheet.
STAG Industrial has grown its FFO per share at a 6.6% average annual rate over the last decade and at a 6.2% average annual rate over the last five years. The U.S. industrial market is more than $1 trillion in size and STAG Industrial still has a market share that is less than 1% of its target market, which includes the top 60 markets of the country. Therefore, the REIT has ample room to continue to grow for years.
STAG has increased its dividend for 15 consecutive years and currently yields 4.1%.
Mid-America Apartment Communities (MAA)
owns, operates and acquires apartment communities in the Southeast, Southwest and mid-Atlantic regions of the U.S. Founded in 1977, it currently has ownership interest in 104,945 apartment units across 16 states and the District of Columbia. MAA aims to offer superior returns to its shareholders by focusing on the Sunbelt Region of the U.S., which has exhibited superior population growth and economic growth in the long run.
In early February, MAA reported (2/4/26) financial results for the fourth quarter of fiscal 2025. Same-store net operating income edged down -1.7% over the prior year’s quarter. Core funds from operations (FFO) per share remained flat at $2.23, and exceeded the analysts’ consensus by $0.01. MAA has missed the analysts’ FFO estimates only in 3 of the last 31 quarters.
MAA has benefited from its focus on the Sunbelt Region of the U.S., which has enjoyed higher economic growth than the rest of the country. About 60% of all the domestic moves occurred in the markets of MAA in the last nine years. MAA has grown its FFO per share at a 4.5% average annual rate over the last decade. Growth stumbled in 2020 due to the pandemic, but the pandemic has subsided and thus MAA has recovered. MAA has ample room to expand its asset portfolio.
The REIT has grown its FFO at a higher rate and thus it has exhibited a decent growth record. MAA has also raised its dividend for 15 consecutive years and has a healthy payout ratio of 71%. It also has one of the strongest balance sheets in the REIT universe, with net debt of $5.9 billion, which is less than six times the annual FFO.
Healthpeak Properties (DOC)
Healthpeak Properties is the largest healthcare REIT in the U.S., with 774 properties. It was the first healthcare REIT that was included in the S&P 500. The REIT invests in life science facilities, senior houses, and medical offices, with 97% of its portfolio based on private-pay sources.
Healthpeak Properties benefits from favorable secular trends. As the baby boomer generation ages and the average life expectancy is on the rise, the senior population of the U.S. is expected to grow significantly in the upcoming years. The 80+ age group is expected to grow by about 5% per year on average until 2030. In addition, this age group has immense spending power. Thanks to these trends, healthcare spending in the U.S. is expected to grow by about 5% per year on average until 2030.
In the past few years, Healthpeak Properties has sold several assets and has used the proceeds to reduce its debt. As a result, the REIT has received credit rating upgrades from S&P and Fitch (to BBB+) as well as Moody’s (to Baa1). Nevertheless, its net debt is still high, at 5.2 times its adjusted EBITDA.
On March 1st, 2024, Healthpeak Properties closed its acquisition of Physicians Realty Trust (DOC) in an all-stock merger of equals valued at ~$21 billion. The new REIT expects to benefit from much greater scale and annual savings of up to $60 million, without a significant effect on its debt.
In early February, Healthpeak Properties reported (2/2/26) results for the fourth quarter of fiscal 2025. Same-property net operating income grew 3.9% over the prior year’s quarter thanks to strong growth in the segment of continuing care retirement community and FFO per share rose 2%, from $0.46 to $0.47. Management expects annual FFO per share of $1.70-$1.74 for 2026.
The payout ratio is standing at a reasonable level for a REIT at 71% expected for 2026. DOC currently yields 7.2%.
Get the complete list of Ultra High Dividend REITs here
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Disclosure: No positions in any stock mentioned
