Let’s be real: finding income in this market without sacrificing growth is like trying to find a parking spot at Costco on a Saturday. Possible, but you better be sharp and quick. The moment you hear “6-8% yield,” most folks either run for the hills expecting a value trap or they dive in without checking if the foundation’s cracking. But what if I told you there are real estate investment trusts (REITs) out there that offer both juicy yields and strong long-term growth prospects?
I know, sounds too good to be true — but it’s not. You just have to look in the right places and understand what you're buying.
So yes, I am buying these high-yield REITs, and here’s why.
Why REITs Deserve a Spot in Your Portfolio (Still)
Let’s quickly bust the biggest myth: “REITs are dead money in high-rate environments.” Wrong. Are they challenged in rising rate cycles? Sure. But dead? Not even close. Some REITs thrive when others panic, especially those with solid balance sheets, pricing power, and strategic asset bases.
REITs must pay out 90% of their taxable income as dividends. That makes them natural income machines. And when you combine that with sectors poised for secular growth — like data centers, logistics, healthcare, and even some overlooked segments like farmland or manufactured housing — you’ve got a powerful combo.
Now, let’s get into the juicy part. Here are the REITs I’m buying with yields in the 6-8% range and strong growth upside.
1. W. P. Carey (WPC)
Dividend Yield: ~7.0%
Thesis: A diversified powerhouse in transition
Let’s start with a REIT that has recently become a misunderstood gem. W. P. Carey is one of the most diversified REITs out there — industrial, office, retail, you name it. That used to be a strength until investors started treating diversification like a four-letter word.
In 2023, WPC announced it would spin off its office properties (not the most loved asset class post-COVID) into a separate entity. Cue the panic and the selloff.
But here’s the kicker: the office spin-off has de-risked the core portfolio, which is now heavily weighted toward industrial and retail properties with long-term triple-net leases. Triple-net means tenants handle taxes, insurance, and maintenance — sweet deal for the landlord.
WPC’s leases are inflation-indexed, which means as prices rise, so does rent. That makes it a real hedge, and a 7% yield backed by growing rents is not something I’m ignoring.
2. Realty Income (O)
Dividend Yield: ~6.1%
Thesis: The Monthly Dividend Machine is on sale
Realty Income is the Beyoncé of REITs — a fan favorite, consistent, and even better live (okay, maybe not live, but you get the point).
Known as “The Monthly Dividend Company,” Realty Income is a retail-focused net-lease REIT that owns over 13,000 properties globally. Think Walgreens, Dollar General, 7-Eleven — the kind of tenants that don’t disappear in a recession.
Here’s why I love it now: the market hates duration risk. O has long-term leases with small annual rent escalators. So when rates spike, the stock gets punished. But this creates a buy-the-dip opportunity.
Realty Income’s cost of capital is rising — no denying that. But it still has fortress-level access to the bond market, a track record of dividend growth for over 25 years, and occupancy rates above 98%.
Is this a screaming growth play? No. But it’s a 6%-yielding, inflation-resistant cash flow machine with dividend hikes you can practically set your watch to.
3. Global Medical REIT (GMRE)
Dividend Yield: ~8.3%
Thesis: Undervalued cash cow in a defensive sector
This one’s under the radar. GMRE focuses on medical office buildings — outpatient facilities leased to healthcare providers. Not hospitals, not biotech labs — the kind of places where you get an MRI or physical therapy.
And guess what? People don’t stop needing MRIs when rates go up.
GMRE’s properties are mission-critical for tenants, meaning they're unlikely to skip rent. Plus, leases often have built-in rent escalators.
Now, the REIT’s price got whacked during the 2022-2023 rate hike cycle. Why? Leverage concerns. But GMRE has been deleveraging, extending maturities, and selling off underperforming properties. They’ve trimmed the fat.
You’re getting a high yield and solid rent collection with the added bonus of demographic tailwinds. Healthcare isn’t going out of style — and neither is this dividend.
4. Broadmark Realty Capital (BRMK)
Dividend Yield: ~8.0%
Thesis: High yield, high risk — but asymmetric upside
Let me be clear: this is a riskier REIT. Broadmark specializes in short-term, high-yield real estate loans — think of it as a REIT version of a hard money lender.
So why touch it? Because BRMK operates with no debt, funds loans from its own equity base, and has extremely short duration (most loans under 12 months). That means it can reprice loans quickly in a rising rate environment.
Now, the company went through a rough patch, with defaults hurting returns and questions around management. But they’re cleaning house. New leadership, better underwriting discipline, and a focus on quality borrowers.
This is not a set-it-and-forget-it REIT. It’s a yield play with speculative upside. But if BRMK tightens its loan book and reduces default rates, the market could re-rate this thing quickly.
5. LTC Properties (LTC)
Dividend Yield: ~6.7%
Thesis: Aging America meets income investing
Senior housing is a long game, and LTC Properties is playing it well.
This REIT invests in skilled nursing and assisted living facilities. It got slammed during COVID (for obvious reasons), but it’s been quietly rebuilding, renegotiating leases, and acquiring newer properties with better operators.
Here’s the tailwind: America is aging fast. By 2030, all Boomers will be 65+. Demand for senior housing will outpace supply — and LTC owns properties in high-barrier states like California and Texas.
The current yield is attractive, but there’s more to the story. Occupancy is rising, rental coverage ratios are improving, and LTC’s dividend is well covered. It even has dry powder to make new acquisitions.
You’re basically getting paid to wait for the demographic wave to hit full force.
6. Armada Hoffler Properties (AHH)
Dividend Yield: ~6.5%
Thesis: Mixed-use development with real upside
This one’s a bit different. AHH is a vertically integrated REIT — they develop, build, own, and manage their assets. That gives them more control (and risk) but also more upside.
Their portfolio is a mix of retail, office, and multifamily in the Mid-Atlantic and Southeast U.S., areas with strong population and job growth.
AHH’s dividend was cut in 2020 but has since been reinstated and is now climbing again. The company has a smart pipeline of developments, a healthy lease-up pace, and a well-covered payout.
What I like most: they’re not afraid to build value. AHH doesn’t just buy properties — they create them. In a market where asset prices are high and cap rates are tight, that’s a competitive edge.
REIT Investing Rules I Stick To
If you’re going to chase high yields, don’t go in blind. Here are the personal guardrails I follow:
1. Balance Sheet Matters
Look at debt maturity schedules. A REIT with near-term debt refinancing needs in this rate environment is walking on a tightrope.
2. Payout Ratio Isn’t Everything
Some REITs pay out 80% of AFFO, others closer to 100%. That’s fine — but sustainability matters more than the number.
3. Watch Tenant Mix
A beautiful building means nothing if your tenants can't pay rent. Look at lease terms, industries served, and tenant quality.
4. Secular Tailwinds Win
Industrial, data centers, senior housing, healthcare — these sectors benefit from trends bigger than the Fed. That gives me more confidence long-term.
Final Thoughts: This Isn’t Just About Yield — It’s About Smart Yield
Look, anybody can chase an 8% yield. There are plenty of dogs out there yielding double digits — just before they slash the payout in half. The trick isn’t chasing yield — it’s identifying sustainable income with growth upside.
Every REIT I’ve listed here fits the bill: they’re either in recovery mode with clear catalysts (WPC, BRMK, LTC), steady growers with strong tenants (O, GMRE), or smart operators in undervalued regions (AHH). And the best part? You’re getting paid handsomely to wait.
In a world where tech stocks are expensive, bonds are volatile, and bank accounts are still offering sad little savings rates, these REITs give you a real alternative.
Just remember: diversify within your REITs, reinvest those dividends if you don’t need them now, and always, always look under the hood.
Disclosure: I own shares in several of these REITs and may buy more. This is not financial advice, just one income-loving investor sharing what I’m doing and why.