How to Invest in REITs
Last updated July 2026
Short answer
You can invest in REITs by buying the individual stocks that fit the thesis (AMT, AVB, CCI), holding an ETF proxy like VNQ, SCHH, or building a focused REITs basket. REITs own income-producing property and are required to distribute most of their taxable income, which is why they yield more than the broad market. What they own matters far more than the label: a data-centre REIT is a technology-demand story, a tower REIT is a telecom-infrastructure story, and a mall REIT is a consumer story. All of them are sensitive to interest rates because property is financed with debt and valued against bond yields.
What gets a stock into the REITs theme?
Companies structured as real estate investment trusts, owning and operating income-producing property and distributing the majority of taxable income to shareholders.
What stocks are in the REITs theme?
Every public name that fits the REITs thesis, with the rationale for inclusion. Click any ticker for the full stock guide. The basket above starts equal-weighted; you set your own target weights inside Walnut.
American Tower Corporation (NYSE: AMT), founded in 1995 and headquartered in Boston, is a real estate investment trust that owns, operates, and develops multitenant communications
AvalonBay Communities is one of the largest U.S.
Crown Castle owns, operates, and leases shared communications infrastructure geographically dispersed across every major U.S.
Digital Realty Trust (NYSE: DLR) is a real estate investment trust that owns, develops, and operates carrier-neutral data centers providing colocation, interconnection, and cloud c
Equinix operates what it calls Platform Equinix: a globally distributed network of carrier-neutral, multi-tenant data centers known as IBX (International Business Exchange) facilit
Extra Space Storage Inc.
Prologis (NYSE: PLD) is a self-administered, self-managed real estate investment trust focused exclusively on industrial and logistics properties.
Public Storage is a Maryland-based real estate investment trust (REIT) that acquires, develops, and operates self-storage facilities under the Public Storage brand.
Simon Property Group is an Indianapolis-based real estate investment trust (REIT) and an S&P 100 constituent.
VICI Properties is a New York-based real estate investment trust that owns experiential real estate, meaning properties people travel to and spend time in rather than shop or work
The largest healthcare REIT, riding an aging-demographics senior-housing recovery through its operating portfolio, outpatient medical, and triple-net leased care properties.
For the full roundup of the individual names in this theme, grouped by the role each one plays, read best reit stocks.
Which ETFs cover REITs?
If you want the theme as a single ticker rather than as a basket, these are the ETFs people most commonly use. Each has trade-offs (concentration, expense ratio, sector overlap) covered in the individual ETF guides.
US real estate (REITs) in one ticker. Data centers, towers, industrial, retail, and residential property, with a higher yield than the broad market.
A low-cost ETF holding around 120 U.S. real estate investment trusts for property exposure and income.
The bottom line on REITs
REITs is best expressed as a focused basket of the names that actually fit the thesis rather than a diluted sector ETF. Core names include AMT, AVB, CCI. In a portfolio it works as a satellite tilt you size deliberately, not a core holding.
FAQ
How do I invest in REITs?
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You can buy individual REITs, hold a broad fund such as VNQ or SCHH, or build a basket weighted toward the property types you want. The sub-sectors diverge sharply, so a broad REIT fund gives you an average of very different businesses. Walnut is informational and not an investment adviser.
Why do REITs pay such high dividends?
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It is a structural requirement, not a choice. To keep REIT tax status a company must distribute most of its taxable income to shareholders, so payout ratios are high by design. That is also why REITs retain little cash for growth and often issue equity or debt to fund acquisitions.
Why do REITs fall when interest rates rise?
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Two reasons at once. Property is bought with debt, so higher rates raise financing costs and reduce what a building is worth. And REITs are held largely for yield, so when safer bonds pay more, investors demand a higher yield from REITs too, which means a lower price. This is why REITs can fall even when their buildings are fully leased.
What is FFO and why not use earnings?
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Funds from operations. Standard accounting depreciates buildings as if they lose value every year, which understates a REIT's real cash generation, since well-maintained property often holds or gains value. FFO adds depreciation back. It is the metric REIT investors actually use, and a REIT's payout ratio should be judged against FFO rather than net income.
Are all REITs the same?
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Not remotely. Data-centre and tower REITs are driven by cloud and mobile demand and have behaved like technology infrastructure. Industrial REITs follow e-commerce logistics. Residential follows housing and rents. Office and retail have faced structural pressure from remote work and online shopping. The property type usually matters more than the REIT label.
What are the risks of REITs?
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Interest-rate sensitivity is the most immediate. Then tenant credit and occupancy, refinancing risk when debt matures into higher rates, oversupply in a specific property type, and structural obsolescence, which is what office landlords have been facing. Distributions can be cut, and were cut widely in 2020.
Does Walnut recommend which REITs to buy?
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No. Walnut is not a registered investment adviser. It lets you build a REIT basket from constituents you choose, weight the property types deliberately, and approve every order yourself at your own broker.
Build the REITs basket in Walnut
Walnut's AI assistant takes the thesis above, proposes 5 to 6 constituents with target weights, and lets you fund the basket through your existing broker. You approve every order; we never trade on your behalf.
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Walnut is informational, not investment advice. Theme membership is descriptive, not prescriptive; nothing on this page should be read as a recommendation. Always verify current financials and your own circumstances before investing.