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.
Essex Property Trust (NYSE:ESS)
Essex Property Trust was founded in 1971 and became a publicly traded real estate investment trust (REIT) in 1994. The trust invests in west coast multi-family residential proprieties where it engages in development, redevelopment, management and acquisition of apartment communities and a few other select properties. Essex has ownership interests in several hundred apartment communities consisting of over 60,000 apartment homes.
On October 29, 2025, Essex Property Trust, Inc. reported core funds from operations (FFO) per diluted share of $3.97 for the quarter ended September 30, 2025, which edged slightly above the consensus estimate. Total revenue reached approximately $473.3 million, just above the prior quarter’s $464.6 million and showing modest growth in the context of a challenging West Coast multi-family market.
Same-property revenue increased in the low single-digit range, supported by blended net effective rent growth, while same-property net operating income (NOI) rose modestly reflecting stable occupancy and efficient cost control. On the acquisition front, the company continued its strategic capital deployment, closing on several higher-growth market communities in Northern California and reallocating capital out of older-asset southern-California holdings, thereby optimizing its portfolio mix.
The board increased the annual dividend again, extending its long-standing record of consecutive annual raises, with the payout covered by cash flows and well within FFO-based metrics. Real estate has a natural moat and Essex’s exposure to high-value cities with strong technology cultures further widens that moat. The trust has a solid BBB+ credit rating and currently has a healthy interest coverage ratio.
ESS has increased its dividend for 31 years and is a Dividend Aristocrat. Shares are currently yielding 4.1%.
Realty Income (NYSE:O)
Realty Income is a retail real estate focused REIT that has become famous for its successful dividend growth history and monthly dividend payments.
Today, the trust owns thousands of properties. Realty Income owns retail properties that are not part of a wider retail development (such as a mall), but instead are standalone properties. This means that the properties are viable for many different tenants, including government services, healthcare services, and entertainment.
On November 3, 2025, Realty Income Corporation reported third-quarter 2025 results including revenue of $1.47 billion, exceeding consensus estimates and year-ago levels. The company posted net income of approximately $315.8 million for the quarter.
Same-store rental revenue rose 1.3% year-over-year to $1,162.3 million, and the rent recapture rate on re-leased units was 103.5% for both the quarter and the nine-month period ended September 30, 2025.
Investment activity was strong, with $200 million in U.S. wholly-owned acquisitions during Q3 (47 properties, 12.2-year weighted average term) and $623.2 million across 105 properties year-to-date (15.3-year term) in total. The company noted initial weighted average cash yields of approximately 7.3% on recent U.S. real-estate investments and around 9% on European credit investments, reflecting favorable risk-adjusted pricing.
Realty Income expects to increase its investments in international markets moving forward. It made its first deal in the UK in 2019 and plans to do more such deals in the future when it finds attractive targets.
Realty Income has increased its dividend for 28 consecutive years, making it a Dividend Aristocrat. Shares are currently yielding 5.7%.
Federal Realty Investment Trust (NYSE:FRT)
Federal Realty was founded in 1962 and concentrates on high-income, densely populated coastal markets in the US, allowing it to charge more per square foot than its competition.
On October 31, 2025, Federal Realty Investment Trust reported third-quarter 2025 results. The company reiterated its strong fundamentals, and noted that its leasing activity and occupancy trends remain resilient Comparable property operating income growth had been in the low single-digit range in prior periods, and portfolio occupancy and lease rates have historically been above 93% and 95%, respectively, in recent quarters.
Federal Realty’s growth moving forward will be comprised of a continuation of higher rent rates on new leases and its impressive development pipeline fueling asset base expansion. Margins are expected to continue to rise slightly as it redevelops pieces of its portfolio and same-center revenue continues to move higher.
Prior to 2020, Federal Realty’s funds-from-operations had not dipped year-over-year at any point in the past decade, a tremendously impressive feat given that the trust operates in the highly cyclical real estate sector. While growth numbers have not always been impressive, the simple fact that it has such a consistent track record of safety and stability when it comes to funds from operations and dividends per share makes it one of the most desirable REITs in the market.
Federal Realty’s competitive advantages include its superior development pipeline, its focus on high-income, high-density areas, and its decades of experience in running a world-class REIT. These qualities allow it to perform admirably, and even grow through recessions
FRT has increased its dividend for 58 consecutive years, making it a Dividend King.
Disclosure: No positions in any stocks mentioned
