Updated on October 10th, 2026 by Nikolaos Sismanis
Real Estate Investment Trusts (REITs) make compelling income investments.
That’s because U.S. REITs are legally required to distribute at least 90% of their REIT taxable income, excluding net capital gains, to investors.
That often translates to high dividend yields.
Some REITs have much higher dividend yields than others.
This research report analyzes the 10 highest-yielding REITs we cover in the Sure Analysis Research Database.
Not all high-yielding stocks are automatic buys.
Investors should carefully assess the fundamentals to ensure that high yields are sustainable.
Dividend safety, valuation, management, balance sheet health, and growth are also very important factors.
We urge investors to use the analysis below as a starting point for high-yield REITs.
Be sure to do significant due diligence before buying into any security, especially high-yield securities.
Yields and rankings below use our October 9th, 2026 data, with the highest-yielding REIT ranked No. 1.
Financial figures are in U.S. dollars unless marked C$.
Many (but not all) high-yield securities have a significant risk of a dividend reduction and/or deteriorating business results.
Table of Contents
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- High-Yield REIT No. 10: True North Commercial REIT (TUERF)
- High-Yield REIT No. 9: Nexus Industrial REIT (EFRTF)
- High-Yield REIT No. 8: Gladstone Commercial Corporation (GOOD)
- High-Yield REIT No. 7: NexPoint Residential Trust (NXRT)
- High-Yield REIT No. 6: Allied Properties Real Estate Investment Trust (APYRF)
- High-Yield REIT No. 5: Innovative Industrial Properties (IIPR)
- High-Yield REIT No. 4: AGNC Investment Corp. (AGNC)
- High-Yield REIT No. 3: Dynex Capital (DX)
- High-Yield REIT No. 2: ARMOUR Residential REIT (ARR)
- High-Yield REIT No. 1: Orchid Island Capital (ORC)
High-Yield REIT No. 10: True North Commercial REIT (TUERF)
- Dividend Yield: 9.1%
True North Commercial REIT owns Canadian office properties, with a portfolio concentrated in Ontario and additional exposure across four other provinces.
As of June 30th, 2026, it owned 37 properties totaling approximately 4.4 million square feet, and government or credit-rated tenants generated roughly 73% of revenue.
Core occupancy was 96%, excluding properties held for sale; occupancy including those assets was 90%.
The core portfolio’s weighted-average remaining lease term was 4.2 years.
Second-quarter property revenue declined 0.9% to $20.1 million, mainly because of an Ottawa property classified as held for sale.
Excluding that property, revenue increased 5.3%, while same-property NOI excluding assets held for sale rose 7.1%.
Quarterly FFO was $0.37 per unit, and we project $1.51 for the full year.
The September distribution declaration maintained C$0.0575 per unit monthly, or C$0.69 annually.
That rate was reinstated in March 2025 following an earlier suspension, and the company’s second-quarter diluted AFFO payout ratio was 36%.
However, indebtedness equaled 62.8% of gross book value, with an average debt maturity of only 2.05 years.
The modest payout provides a buffer, but refinancing costs, office vacancies, and asset-value declines remain significant risks to future distributions.
High-Yield REIT No. 9: Nexus Industrial REIT (EFRTF)
- Dividend Yield: 9.4%
Nexus Industrial REIT owns industrial properties across Canada and has been selling legacy office and retail assets to sharpen its focus.
At June 30th, 2026, its portfolio included 87 properties totaling 12.3 million square feet, with industrial occupancy of 97% and a 6.7-year weighted-average lease term.
Second-quarter revenue increased 10.9% to $33.7 million, and NOI rose 6.2% to $24.7 million, supported by completed developments and acquisitions.
Industrial same-property NOI increased 3.3%, while lease renewals achieved an average 6% increase over expiring rents.
Normalized FFO and AFFO were $0.133 and $0.111 per unit, respectively.
The monthly distribution remains C$0.05333, or C$0.64 annually, with September and October payments declared.
However, the normalized AFFO payout ratio was 102.2% for the quarter and 99.3% for the first half, leaving little room for weaker results.
In September, Nexus priced C$300 million of senior unsecured debentures at 4.563%, maturing in March 2030, with proceeds intended for debt repayment and general trust purposes.
That followed its inaugural C$500 million bond issuance earlier in 2026.
Access to unsecured funding improves financing flexibility, but adjusted net debt remained 10.5 times adjusted EBITDA at quarter-end.
Distribution coverage and leverage therefore remain more important than the headline yield.
High-Yield REIT No. 8: Gladstone Commercial Corporation (GOOD)
- Dividend Yield: 9.4%
Gladstone Commercial Corporation owns single-tenant and anchored multi-tenant net-lease properties across the United States.
Management continues to shift the portfolio toward industrial real estate and away from offices, aiming to improve tenant quality and long-term cash flow.
At June 30th, 2026, the portfolio comprised 151 properties totaling 17.7 million square feet and was 98.7% leased.
Second-quarter operating revenue reached $44.0 million, up 5.0% sequentially.
Core funds from operations increased to $18.3 million, or $0.38 per diluted share, from $17.0 million, or $0.35, in the first quarter.
Results benefited from a lease-termination payment, so investors should distinguish recurring rent growth from that one-time contribution.
Rent collection remained 100% from April through July.
During the quarter, Gladstone acquired a 153,890-square-foot industrial property for $22.8 million at a 6.76% capitalization rate and sold another asset for $12.9 million.
After quarter-end, it acquired an additional industrial property for $6.6 million at a 9.16% cap rate.
The common dividend remains $0.10 monthly, or $1.20 annually, with July through September distributions declared.
That payout consumed approximately 79% of second-quarter Core FFO and 86% of our $1.40 full-year FFO estimate.
Although industrial acquisitions support the portfolio transition, office exposure, refinancing costs, and limited payout headroom continue to constrain dividend safety.
High-Yield REIT No. 7: NexPoint Residential Trust (NXRT)
- Dividend Yield: 10.8%
NexPoint Residential Trust owns apartment communities primarily in Sunbelt markets, including Phoenix, South Florida, and Dallas-Fort Worth.
Its strategy combines workforce-oriented housing with renovations designed to support higher rents and property values.
At June 30th, 2026, NexPoint owned 36 properties containing 13,305 units, with portfolio occupancy of 93.5%.
Second-quarter revenue increased 2.4% to $64.6 million, but same-store NOI declined 2.9% as same-store revenue and average effective rent decreased 0.6% and 0.9%, respectively.
Same-store occupancy improved 30 basis points, partially offsetting weaker rents.
Core FFO declined to $0.66 per share from $0.71 a year earlier, while AFFO decreased to $0.77 from $0.80.
NexPoint completed 459 full and partial upgrades and leased 255 renovated units at an average monthly premium of $90.60, generating a 23% return on investment.
It also deployed $22.1 million into a 10% fixed-rate term loan, its first investment under a multifamily bridge-lending program.
Management reduced the midpoint of full-year AFFO-per-share guidance to $2.86 from $2.99.
The $0.53 quarterly dividend, most recently declared for September payment, equals $2.12 annually and consumes roughly 74% of revised expected AFFO.
NexPoint has increased its annual dividend for 10 consecutive years, but leverage, weaker apartment fundamentals, and the lower outlook make cash-flow recovery essential to maintaining that record.
High-Yield REIT No. 6: Allied Properties Real Estate Investment Trust (APYRF)
- Dividend Yield: 12.4%
Allied Properties Real Estate Investment Trust owns urban office properties in major Canadian cities, including Toronto, Montreal, and Vancouver.
At June 30th, 2026, its portfolio contained 179 properties and 14.1 million square feet, with 86.7% leased and 84.4% occupied.
Second-quarter revenue declined 3.1% to $99.7 million, while operating income fell 12.7% to $49.5 million as property costs increased.
Interest expense rose 21.4% to $28.3 million, adding pressure on cash generation.
AFFO per unit declined 62.7% to $0.121.
Allied also recorded a $538.6 million property fair-value loss and completed $139.8 million of dispositions during the quarter.
Management lowered its 2026 rental-portfolio same-asset NOI outlook to an 8%–9% decline, from a 5.5%–6.5% decline.
The September declaration maintained the monthly distribution at C$0.06 per unit, or C$0.72 annually, following the 60% reduction announced in December 2025.
Our full-year AFFO estimate implies a payout ratio near 74%, but the company’s second-quarter adjusted AFFO payout ratio exceeded 100%.
The forecast therefore assumes better coverage than the latest quarter delivered.
Net debt remained approximately 12 times annualized adjusted EBITDA at quarter-end.
Asset sales and the reduced distribution help preserve cash, but weak office utilization, valuation losses, and refinancing costs keep the income stream vulnerable.
High-Yield REIT No. 5: Innovative Industrial Properties (IIPR)
- Dividend Yield: 14.6%
Innovative Industrial Properties provides real estate capital to regulated cannabis operators and has expanded into life-science real estate through its investment in IQHQ.
At June 30th, 2026, it owned 108 properties across 19 states, with a weighted-average remaining lease term of approximately 11.9 years.
Second-quarter revenue increased 0.7% to $63.3 million, and AFFO per share rose 7.0% to $1.83.
New leases and contractual rent increases helped results, while defaults, lease terminations, and property sales remained offsets.
Interest and other income included $8.5 million from IQHQ, whose $270 million strategic investment was fully funded during the quarter.
IIPR also signed a 58,000-square-foot lease with Curaleaf for an Ohio property surrendered by PharmaCann.
However, tenant distress remains significant.
In July, Parallel defaulted on approximately $1.6 million of rent and related obligations at two Florida properties and said it intended to vacate them.
Those leases represented approximately 5.2% of annualized contractual rent and income from loans and securities as of March 31st.
At June 30th, net debt equaled 14.2% of gross assets, and liquidity totaled $299.7 million.
The September declaration maintained the quarterly dividend at $1.90, or $7.60 annually.
That exceeds both the latest quarterly AFFO and our $7.00 full-year estimate, leaving tenant credit, rent collection, and dividend coverage central to the investment case.
High-Yield REIT No. 4: AGNC Investment Corp. (AGNC)
- Dividend Yield: 16.6%
AGNC Investment Corp. invests primarily in Agency residential mortgage-backed securities, financing its portfolio mainly through repurchase agreements and hedging much of its interest-rate exposure.
Agency guarantees reduce credit risk, but mortgage spreads, funding costs, prepayments, and leverage can still create substantial volatility.
Second-quarter 2026 comprehensive income was $0.52 per share, while net spread and dollar-roll income reached $0.40.
Tangible net book value increased 2.4% to $8.58 per share, helping produce a 6.7% economic return for the quarter.
The annualized net interest spread was 2.00%, and the actual constant prepayment rate was 13.0%.
As of June 30th, AGNC held a $97.2 billion investment portfolio with tangible at-risk leverage of 7.4 times.
Unencumbered cash and Agency securities totaled $7.5 billion, equal to 62% of tangible equity.
The company also raised $167 million through its at-the-market equity program, expanding the capital available for investment.
AGNC joined the S&P MidCap 400 Index on September 21st.
On October 7th, it declared another $0.12 monthly common dividend, maintaining the $1.44 annualized rate.
Second-quarter net spread and dollar-roll income covered the $0.36 quarterly payout, while our full-year earnings estimate implies a payout ratio near 91%.
That coverage remains sensitive to financing costs and mortgage-market conditions, and Agency backing does not protect shareholders from book-value losses or future dividend reductions.
High-Yield REIT No. 3: Dynex Capital (DX)
- Dividend Yield: 19.1%
Dynex Capital is an internally managed mortgage REIT that invests primarily in Agency residential and commercial mortgage-backed securities.
Agency guarantees limit credit risk, but leverage, financing costs, prepayments, and hedging outcomes can cause substantial earnings and book-value volatility.
Dynex generated a 6.4% total economic return in the second quarter of 2026.
Book value increased by $0.30 to $12.90 per share, while comprehensive income and net income were both $0.80 per common share.
Earnings available for distribution improved to $0.36 per share from $0.31 in the first quarter.
The investment portfolio expanded 11% sequentially to $27.6 billion following $2.8 billion of mortgage-security purchases.
Dynex raised $391 million of common equity and ended June with $1.6 billion of liquidity.
Leverage, including to-be-announced securities, declined to 8.1 times from 8.6 times.
In September, it priced a $120 million offering of Series D preferred stock carrying a 9.375% dividend, with proceeds intended for investments and general corporate purposes.
The latest common dividend declaration maintained $0.17 monthly, or $2.04 annually.
However, second-quarter distributable earnings did not cover the $0.51 quarterly common payout, and our full-year estimate implies a payout ratio near 146%.
Dynex has raised its annual dividend for two consecutive years, but the funding burden and incomplete earnings coverage remain material risks to maintaining that payout.
Deep Dive: Click here to download (for free) our most recent 3-Page Sure Analysis PDF report on Dynex Capital (DX).
High-Yield REIT No. 2: ARMOUR Residential REIT (ARR)
- Dividend Yield: 21.4%
ARMOUR Residential REIT invests mainly in residential mortgage-backed securities issued or guaranteed by U.S. government-sponsored entities.
Those guarantees limit credit risk, but substantial leverage leaves shareholders exposed to mortgage spreads, interest-rate volatility, prepayments, financing costs, and hedging performance.
Second-quarter 2026 GAAP net income available to common shareholders was $111.5 million, or $0.86 per share.
Distributable earnings totaled $93.2 million, or $0.72 per share, matching the quarter’s $0.72 common dividend payout.
However, distributable earnings per share declined from $0.77 a year earlier despite portfolio expansion.
Book value increased 0.6% to $17.53 per share, producing a 4.8% total economic return.
At June 30th, the investment portfolio was approximately $21.8 billion, with implied leverage near 7.7 times.
Liquidity was about $1.2 billion, equal to 47% of shareholders’ equity.
ARMOUR raised $218.7 million by issuing approximately 12.7 million common shares through its at-the-market program, providing investment capital while increasing the share count.
On October 1st, the company confirmed its $0.24 common dividend for October, maintaining the $2.88 annualized rate.
That payout consumes approximately 98% of our $2.93 full-year earnings estimate.
The latest quarter covered the dividend without much room to spare, and ARMOUR’s history of payout reductions underscores the risk that weaker mortgage-market returns could force another cut.
High-Yield REIT No. 1: Orchid Island Capital (ORC)
- Dividend Yield: 23.9%
Orchid Island Capital is an externally managed mortgage REIT investing in Agency residential mortgage-backed securities, including pass-through and structured securities.
Government guarantees reduce credit risk, but leverage exposes shareholders to mortgage spreads, interest-rate movements, prepayments, hedging outcomes, and book-value volatility.
Second-quarter 2026 net income was $89.2 million, or $0.44 per share.
Net interest income totaled $60.0 million, or $0.30 per share, while investment and derivative gains contributed $36.0 million.
Book value increased by $0.14 to $7.22 per share, helping generate a 6.2% quarterly total return.
At June 30th, the portfolio totaled approximately $11.5 billion, economic leverage was 7.3 times, and the net interest spread was just under 2%.
Orchid also repurchased approximately 1.1 million shares during the quarter and expanded its remaining repurchase authorization in June.
The September declaration maintained the monthly dividend at $0.10, payable October 29th, after April’s 16.7% reduction from $0.12.
The current rate equals $1.20 annually, exceeding our $1.10 full-year earnings estimate and implying a payout ratio near 109%.
The latest quarter’s net interest income matched its $0.30 dividend, but that result does not guarantee future coverage.
Orchid’s long history of dividend reductions, coupled with its leveraged portfolio, makes the exceptionally high yield a signal to scrutinize earnings and capital preservation carefully.
Final Thoughts
The 10 highest-yielding REITs in the current Sure Analysis universe offer substantial income, but every company in this ranking has an F Dividend Risk Score.
That common risk rating matters more than the small differences between headline yields.
True North, Nexus, Allied, Gladstone Commercial, NexPoint, and Innovative Industrial own physical real estate, yet their challenges range from office exposure and leverage to weak apartment fundamentals and cannabis-tenant credit.
AGNC, Dynex, ARMOUR, and Orchid are mortgage REITs whose results can shift rapidly with leverage, funding costs, hedging outcomes, mortgage spreads, and book values.
The ranking also demonstrates that a high yield can reflect a recent dividend reduction rather than unusually dependable income, as seen at Allied and Orchid.
We suggest using this list as a research starting point, not a buy list.
Before relying on any distribution, investors should examine current payout coverage, liquidity, refinancing needs, asset or tenant quality, and the company’s history of maintaining its dividend through difficult conditions.
If you are interested in finding high-quality dividend growth stocks and/or other high-yield securities and income securities, the following Sure Dividend resources will be useful:
Other Sure Dividend Resources
- Dividend Kings: 50+ years of rising dividends
- Dividend Champions: 25+ years of rising dividends
- Dividend Aristocrats: 25+ years of rising dividends and in the S&P 500
- High Dividend Stocks: 4%+ dividend yields
- Monthly Dividend Stocks: Individual securities that pay out every month
- Royalty Stocks: Detailed royalty stocks list
- MLPs: Detailed MLP list
- REITs: Detailed REIT list
- BDCs: Detailed BDC list