My Top REIT to Buy in 2025 for Passive Income

Last year was another challenging one for the commercial real estate sector. While the Federal Reserve started reducing interest rates, it didn't cut them as fast as the market expected due to stubbornly high inflation. Higher rates acted as a headwind for the sector, impacting property values and the ability of real estate investors to borrow money to fund new real estate deals. As a result, the average real estate investment trust (REIT) delivered a meager return last year. The S&P U.S. REIT Index only gained 4.3%, significantly underperforming the S&P 500's 25% total return. Despite the sector's poor performance in recent years, REITs have outperformed stocks over the longer term. That's one of the many reasons why I've continued to buy more shares of several REITs over the past few years. I plan to continue doing so in 2025. My top REIT to buy this year is Realty Income (NYSE: O). It has been a prodigious passive income producer over the years, contributing to its strong total returns over the long term. Those are some of the many reasons why I think it's the top REIT to buy this year.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool