Top 5 global REITs to watch in 2025

What are REITs?

Real Estate Investment Trusts (REITs) are companies that own, operate or finance income-producing real estate across various sectors. They offer traders a way to gain exposure to real estate markets without directly owning physical properties.

REITs typically focus on specific property types such as shopping centres, office buildings, warehouses, healthcare facilities, or data centres. To qualify as a REIT, companies must distribute at least 90% of their taxable income to shareholders as dividends.

Global adoption of REITs

REITs originated in the United States in the 1960s and have since expanded globally. Today, REIT markets exist in over 40 countries with a combined global market capitalisation of approximately $2.04 trillion as of 2024⁵.

Benefits of REIT trading

Several factors may make REITs attractive to traders:

• Liquidity: Major REITs trade on established exchanges with good daily volumes
• Regulatory oversight: Most REITs operate under strict regulatory frameworks requiring regular financial disclosure
• Transparency: Public REITs must publish quarterly earnings and annual reports
• Diversification: Exposure to real estate without direct property ownership complexities
• Professional management: Experienced teams handle day-to-day operations and strategic decisions
• Dividend focus: Most REITs have dividend yields above market averages
• Trading flexibility: Choose between direct stock ownership or leveraged CFD trading

Performance context: Over the past 25 years, REITs have delivered an 11.4% annual return compared to 7.6% for the S&P 500⁹. REITs have outperformed the S&P 500 over the past 20-, 25-, 30-, 40-, and 52-year periods⁶. However, this includes significant volatility periods.

Important note: Past performance does not guarantee future results, and all investments carry risk.

Risks to consider with REITs

REIT trading involves several risks that traders should understand:

• Interest rate sensitivity: REITs are particularly sensitive to interest rate changes. Rising rates can negatively impact valuations as investors may prefer bonds or other fixed-income investments
• Sector-specific risks: REITs focusing on struggling sectors (such as retail during economic downturns) may face significant challenges
• Economic cycles: Property values and rental income fluctuate with economic conditions
• Leverage risks: Many REITs use debt to finance acquisitions, which can amplify both gains and losses
• Market volatility: REIT prices can be volatile, especially during uncertain economic periods
• Concentration risk: Some REITs focus on specific geographic regions or property types, increasing concentration risk
• CFD trading risks: For leveraged CFD positions, losses can exceed your initial deposit due to leverage. This applies to professional clients only. Retail clients benefit from negative balance protection.

Historical volatility: REITs have generally been less volatile than the S&P 500, with the long-term beta of the REIT sector at 0.75⁷. Most REITs are less volatile than the S&P 500, with some only half as volatile as the market at large⁷.

Five global REITs to consider

Our selection focuses on REITs that currently appear undervalued relative to analyst estimates, offer attractive dividend yields, and operate in markets with potential for recovery or growth. The analysis includes both fundamental metrics and technical considerations.

Overview of the REITs in this article

Important note: All financial data is indicative and subject to market changes. Past performance does not guarantee future results.

Trading availability note: Two REITs below (Realty Income and Healthpeak Properties) are available for both direct stock trading and CFD trading with us, while three others (Link REIT, Unibail-Rodamco-Westfield, and Growthpoint Properties Australia) are available via CFD trading only with IG UAE.

1. Realty Income Corporation (NYSE: O)
 

Available via: Direct stock trading & CFD trading

Company overview: Founded in 1969, Realty Income Corporation operates one of the largest portfolios of single-tenant retail properties in the United States. The company's triple-net lease model requires tenants to pay most property expenses, potentially providing more predictable cash flows.

Key financial metrics:

• Market cap: $51.41 billion¹
• Dividend yield: 5.67%¹
• P/E ratio: 18.2x²
• Debt-to-equity ratio: 0.43x²
• Occupancy rate: 98.1%²
• Price-to-book ratio: 1.4x²

Portfolio breakdown:

• 15,450+ properties across all 50 US states plus international markets
• Average lease term: 9.8 years
• Top tenant sectors: Convenience stores (11.2%), drug stores (10.8%), dollar stores (10.1%)²

Financial performance:

• Revenue growth (5-year CAGR): 6.8%²
• Dividend growth streak: 29 consecutive years of increases
• Funds from operations (FFO) per share: $4.11 (2024)²

Investment considerations:

• Analyst fair value estimate: $75.00 per share³ (potential upside of 31.8% from current levels)
• One of only two REITs in the S&P High-Yield Dividend Aristocrats Index with A- credit rating or higher⁸
• Exposure to recession-resistant retail sectors
• International diversification with properties in UK and continental Europe

Risks: Retail sector challenges, interest rate sensitivity, high valuation relative to book value.

2. Link REIT (Hong Kong Stock Exchange: 0823.HK)
 

Available via: CFD trading only

Company overview: Link REIT has evolved from a Hong Kong-focused entity to a pan-Asian real estate platform. The company's portfolio includes 154 properties across multiple Asian markets.

Key financial metrics:

• Market cap: HK$110.49 billion¹
• Dividend yield: 6.41%¹
• P/E ratio: 12.8x²
• Debt-to-equity ratio: 0.38x²
• Occupancy rate: 91.2%²
• Price-to-book ratio: 0.98x²

Portfolio breakdown:

• 154 properties across Hong Kong, mainland China, Australia, Singapore, and UK
• Hong Kong properties: 56% of portfolio value
• Mainland China: 28% of portfolio value
• Other markets: 16% of portfolio value²

Financial performance:

• Revenue growth (5-year CAGR): 4.2%²
• Dividend per unit: HK$2.70 (2024)²
• Funds from operations growth: 3.8% annually over past 5 years²

Investment considerations:

• Analyst fair value estimate: HK$45.00 per unit³ (potential upside of 6.8% from current levels)
• Exposure to China's consumer market recovery
• Focus on essential retail services and community shopping centres
• Conservative debt levels relative to peers

Risks: China economic slowdown, Hong Kong political tensions, currency fluctuation for international investors.

3. Unibail-Rodamco-Westfield (Euronext: URW)

Available via: CFD trading only

Company overview: Created through the 2018 merger of Unibail-Rodamco and Westfield Corporation, URW operates flagship shopping destinations across Europe and the United States. The company has undergone significant restructuring following the pandemic's impact on retail real estate.

Key financial metrics:

• Market cap: €11.53 billion¹
• Dividend yield: 4.35%¹
• P/E ratio: 15.6x²
• Debt-to-equity ratio: 0.67x²
• Occupancy rate: 89.4%²
• Price-to-book ratio: 0.72x²

Portfolio breakdown:

• 73 shopping centres across Europe and US
• Gross leasable area: 5.9 million square metres
• Average rent per square metre: €612 annually²
• Top markets: France (41%), US (28%), Germany (12%)²

Financial performance:

• Net rental income: €1.89 billion (2024)²
• Recurring earnings per share: €11.20 (2024)²
• Debt reduction: €4.2 billion since 2020²

Investment considerations:

• Analyst fair value estimate: €103.33 per share⁴ (potential upside of 28.3% from current levels)
• Significant debt reduction and operational improvements completed
• Premium assets in prime metropolitan locations
• Potential beneficiary of retail sector recovery

Risks: Retail sector structural challenges, high debt levels, economic sensitivity in Europe and US.

4. Growthpoint Properties Australia (ASX: GOZ)

Available via: CFD trading only

Company overview: Growthpoint Properties Australia operates a diversified portfolio spanning office, industrial, and retail properties across major Australian cities. The company has been increasing its exposure to industrial and logistics properties.

Key financial metrics:

• Market cap: AU$1.77 billion¹
• Dividend yield: 8.76%¹
• P/E ratio: 11.3x²
• Debt-to-equity ratio: 0.52x²
• Occupancy rate: 95.7%²
• Price-to-book ratio: 0.85x²

Portfolio breakdown:

• 60 properties across Australia
• Office: 45% of portfolio value
• Industrial: 38% of portfolio value
• Retail: 17% of portfolio value²

Financial performance:

• Funds from operations: AU$0.207 per unit (2024)²
• Distribution per unit: AU$0.205 (2024)²
• Weighted average lease expiry: 5.8 years²

Investment considerations:

• Analyst fair value estimate: AU$3.07 per share⁴ (potential upside of 31.2% from current levels)
• High dividend yield attractive for income-focused investors
• Exposure to Australia's industrial property boom
• Diversified portfolio reduces single-sector risk

Risks: Australian economic sensitivity, office sector challenges, interest rate impact on highly leveraged structure.

5. Healthpeak Properties (NYSE: DOC)

Available via: Direct stock trading & CFD trading

Company overview: Healthpeak Properties specialises in healthcare real estate, including medical office buildings, life sciences facilities, and senior housing properties. The company's portfolio includes approximately 450 properties focused on healthcare infrastructure.

Key financial metrics:

• Market cap: $13.18 billion¹
• Dividend yield: 6.58%¹
• P/E ratio: 16.9x²
• Debt-to-equity ratio: 0.41x²
• Occupancy rate: 96.8%²
• Price-to-book ratio: 1.1x²

Portfolio breakdown:

• Medical office buildings: 58% of portfolio value
• Life sciences: 28% of portfolio value
• Senior housing: 14% of portfolio value²

Financial performance:

• Funds from operations: $1.74 per share (2024)²
• Dividend per share: $1.22 annually (2024)²
• Same-store net operating income growth: 2.8% (2024)²

Investment considerations:

• Analyst fair value estimate: $23.00 per share⁴ (potential upside of 24.1% from current levels)
• Exposure to defensive healthcare sector
• Beneficiary of demographic trends and aging populations
• S&P 500 component with established track record

Risks: Healthcare regulation changes, senior housing operational challenges, concentration in specific healthcare sectors.

Trading REITs with IG UAE

IG provides UAE traders with access to international REIT markets through two methods: direct stock trading (for select REITs) and CFD trading (for all featured REITs).

1. Open an IG trading account – Complete the application process and verify your identity
2. Choose your trading method – Decide between direct stock trading and/or CFD trading based on your strategy
3. Research your chosen REITs – Use IG's research tools, company financials, and third-party analysis
4. Understand the risks – Familiarise yourself with REIT-specific risks and trading method risks
5. Start with a demo account – Practise trading REITs without risking real money
6. Implement risk management – Set stop losses and position sizes appropriate for your risk tolerance

Risk management for REIT trading
 

Direct stock trading:

• Position sizing: Never risk more than 5-10% of your account on any single REIT
• Diversification: Consider spreading investments across multiple REITs and sectors
• Regular review: Assess portfolio performance and rebalance as needed
   

CFD trading:

• Position sizing: Never risk more than 2-3% of your account on any single REIT trade
• Stop losses: Set predetermined exit points to limit potential losses (typically 5-10% below entry)
• Leverage management: Use lower leverage ratios to reduce risk
• Market analysis: Monitor interest rate trends, economic indicators, and real estate market conditions

FAQs about REITs

Footnotes
 

1. TradingView, market data as of July 2025
2. Financial metrics sourced from Yahoo Finance company profiles and recent quarterly earnings reports
3. Morningstar analyst consensus estimates, July 2025
4. Simply Wall St valuation models, July 2025
5. Nareit Global REIT Investment: "A total of 1,021 listed REITs with a combined equity market capitalization of approximately $2.04 trillion (as of 2024) are in operation around the world"
6. The Motley Fool: REITs vs. Stocks: "REITs have outperformed the S&P 500 over the past 20-, 25-, 30-, 40-, and 52-year periods"
7. The Motley Fool: REITs vs. Stocks: "The long-term beta of the REIT sector is 0.75" and "Most REITs are less volatile than the S&P 500"
8. S&P Dividend Aristocrats Index methodology and constituent data
9. The Motley Fool: These 3 REITs Have Delivered Better Returns: "During the past 25 years, REITs have delivered an 11.4% annual return, crushing the S&P 500's 7.6% annualized total return"
10. The Property Chronicle: REITs & Recessions: "According to SNF Financial, 78 REITs cut or suspended their dividends during the worst financial meltdown since the Great Depression"