Real estate stocks have always been popular, but 2025 is bringing some heavy hitters, and a few dark horses, too.
If you’re searching for juicy dividends, long-term appreciation, or simply a good inflation hedge, these five REITs (Real Estate Investment Trusts) are worth considering.
But are they really a good buy today? Find out.
Prologis, Inc. (PLD)
If you have ever ordered anything online, (let’s face it, you have) then Prologis has likely helped deliver it to your door.
Pros: This real estate logistics firm owns warehouses and distribution centers in the most sought-after locations; currently, they are major players in the e-commerce industry.
Their revenue is growing, and they are massive, with sites all over the globe.
Cons: Prologis’s recent stock performance has been poor (-20.72% 1-year return). Plus, high interest rates and economic slowdown might reduce the demand for warehouse space.
Nevertheless, if you have faith in e-commerce and the durability of the supply chain, Prologis is a good long-term gamble.
American Tower Corp (AMT)
Mobile data usage isn’t taking a dive anytime soon, and American Tower owns the real estate that makes wireless communication possible.
Pros: With over 221,000 communication sites around the world, American Tower is a force to be reckoned with when it comes to the infrastructure required for wireless communication.
With more 5G adoption, more towers will be needed, and American Tower offers a compelling way to achieve this growth.
On the downside, a 1-year change of -15.42% indicates that there are some issues with its stock. This could be due to the increased debt management risk, as well as the higher interest rates. Additionally, the tightening of spending by telecom carriers could hurt their growth prospects in the short-run.
Nevertheless, the future of 5G is bright and we might be needing sunshades soon.
Since the expansion of the wireless industry is expanding, AMT is a good play for the long-term, but investors need to brace up for some turbulence.
Equinix, Inc. (EQIX)
Cloud computing, AI, and streaming services are growing rapidly, and all of them require huge data centers.
Upsides: Equinix owns a ton of these data centers, more than their top 10 competitors combined. This data giant also offers access to thousands of network, cloud, and IT services from their data centers.
Cons: The stock is on the pricy side (P/E of 85.45), and therefore, any earnings miss could send it on a great fall, like our dear friend, Humpty-Dumpty. Equally, the business could be affected by high energy costs.
For investors who believe in digital transformation, Equinix is a beast in the game. Just understand that you’ll be paying top dollar for it.