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10 Best Apartment REITs To Buy Now For Income Investors


Updated on June 13th, 2025 by Bob Ciura

Due to the surge of inflation to a 40-year high last year, the Federal Reserve raised interest rates at a rapid pace over the past two years to cool the economy.

But with inflation recently perking up again and the potential impact of tariffs, some economists now expect the Fed to lower interest rates once again.

Apartment REITs have proved resilient to recessions thanks to the essential nature of their business. They also widely have high dividend yields well above the S&P 500 Index average.

And, apartment REITs would benefit from falling interest rates, which would lower their cost of capital.

You can download our full REIT list, along with important metrics such as dividend yields and market caps, by clicking on the link below:

 

Click here to instantly download your free spreadsheet of all REITs Stocks now, along with important investing metrics.

As a result, apartment REITs are interesting candidates for income investors.

This article will discuss the prospects of the top 10 apartment REITs in our Sure Analysis Research Database.

The following 10 apartment REITs are listed by five-year expected annual returns, in order of lowest to highest:

Table of Contents

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Apartment REITs #10: Essex Property Trust (ESS)

Essex Property Trust was founded in 1971. 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. The trust has about 1,800 employees and produces approximately $1.6 billion in annual revenue.

Essex is concentrated on the West Coast of the U.S., including cities like Seattle and San Francisco.

Source: Investor Presentation

On April 29, 2025, Essex Property Trust reported its financial results for the first quarter of 2025. Funds from Operations (FFO) per diluted share declined by 13.7% to $3.97.

However, Core FFO per diluted share increased by 3.7% to $3.97, exceeding the midpoint of the company’s guidance range by $0.05. This performance was driven by favorable same-property revenue growth, co-investment income, and interest expense.

Same-property revenue and net operating income (NOI) grew by 3.4% and 3.3%, respectively, compared to the first quarter of 2024, with sequential improvements of 1.6% in revenue and 0.9% in NOI.

Click here to download our most recent Sure Analysis report on ESS (preview of page 1 of 3 shown below):

Apartment REITs #9: Camden Property Trust (CPT)

Founded in 1993 and headquartered in Houston, Texas, Camden Property Trust is one of the largest publicly traded multifamily real estate companies in the U.S.

The REIT owns, manages and develops multifamily apartment communities. It currently owns 172 properties that contain over 58,000 apartments.

On May 1st, 2025, Camden Property reported its Q1 results for the period ending March 31st, 2025. For the quarter, the company reported property revenue of $390.6 million, up slightly from $383.1 million in Q1 2024.

While same-property revenues rose 0.8%, same-store occupancy increased 40 basis points to 95.4%. Same-property expenses grew by 0.5% during the period, while same-property net operating income (NOI) grew 0.9%.

Funds from Operations (FFO) totaled $186.9 million, or $1.70 per share, compared to $183.8 million, or $1.67 per share, in Q1 2024. Management raised their full-year 2025 Core FFO guidance to a range of $6.63 to $6.93 per share.

Click here to download our most recent Sure Analysis report on Camden Property Trust (CPT) (preview of page 1 of 3 shown below):

Apartment REITs #8: AvalonBay Communities (AVB)

AvalonBay Communities is a multifamily REIT that owns a portfolio of several hundred apartment communities and is also an active developer of apartment communities.

The strategy of the REIT involves owning top-tier properties in the major metropolitan areas of New England, New York/New Jersey, Washington D.C., California, and the Pacific Northwest.

Source: Investor Presentation

On April 30, 2025, AvalonBay Communities reported its financial results for the first quarter ended March 31, 2025. The company achieved earnings per share (EPS) of $1.66, marking a 36.1% increase from $1.22 in the same period of the previous year.

Funds from operations (FFO) per share rose by 1.8% to $2.78, while Core FFO per share increased by 4.8% to $2.83. Same-store residential revenue grew by 3.0% to $693.1 million, and same-store net operating income (NOI) increased by 2.6% to $478.3 million, driven by higher occupancy and favorable expense management.

Click here to download our most recent Sure Analysis report on AvalonBay Communities (AVB) (preview of page 1 of 3 shown below):

Apartment REITs #7: Equity Residential (EQR)

Equity Residential is one of the largest U.S. publicly-traded owners and operators of high-quality rental apartment properties with a portfolio primarily located in urban and dense suburban communities.

The properties of the trust are located in affluent areas around Boston, New York, Washington, D.C., Southern California, San Francisco, Seattle, and Denver.

Equity Residential greatly benefits from the favorable characteristics of its target group. Affluent renters are highly educated, well employed and earn high incomes.

As a result, they pay approximately 20% of their incomes on rent and hence they are not burdened by their rent. Thanks to their strong earnings potential, the REIT can easily grow its rent rates year after year.

On April 29, 2025, Equity Residential reported its financial results for the first quarter of 2025. The company achieved earnings per share (EPS) of $0.67, a 13% decrease from the same period in 2024, primarily due to lower property sale gains and higher depreciation expenses.

However, funds from operations (FFO) per share increased by 8% to $0.94, and normalized FFO rose by 2.2% to $0.95 per share, surpassing the company’s guidance expectations.

Total revenues for the quarter were $760.8 million, reflecting a 4.1% year-over-year increase, driven by strength in markets such as New York and Washington, D.C., and continued improvement in San Francisco and Seattle.

Click here to download our most recent Sure Analysis report on Equity Residential (EQR) (preview of page 1 of 3 shown below):

Apartment REITs #6: Mid-America Apartment Communities (MAA)

Mid-America Apartment Communities is a REIT that owns, operates and acquires apartment communities in the Southeast, Southwest and mid-Atlantic regions of the U.S.

It currently has ownership interest in ~102,000 apartment units across 16 states and the District of Columbia.

MAA is focused on the Sunbelt Region of the U.S., which has exhibited superior population growth and economic growth in the long run.

Source: Investor Presentation

In late April, MAA reported (4/30/25) financial results for the first quarter of fiscal 2025. Same-store net operating income slipped -0.6% over the prior year’s quarter. Core funds from operations (FFO) per share dipped -1%, from $2.22 to $2.20, due to higher interest expense, but exceeded the analysts’ consensus by $0.02.

MAA has missed the analysts’ FFO estimates only twice in the last 28 quarters. MAA has decelerated in the last seven quarters due to high supply of new apartments in its markets but the volume of new apartments has begun to lose steam, with fewer new apartments expected next year.

MAA reaffirmed its guidance for core FFO per share of $8.61-$8.93.

Click here to download our most recent Sure Analysis report on Mid-America Apartment Communities (MAA) (preview of page 1 of 3 shown below):

Apartment REITs #5: American Homes 4 Rent (AMH)

Based in Maryland, American Homes 4 Rent is an internally managed REIT that focuses on acquiring, developing, renovating, operating and leasing single-family homes as rental properties. AMH was formed in 2013 and has a market capitalization of $14 billion.

The REIT holds nearly 58,000 single-family properties in more than 30 sub-markets of metropolitan statistical areas in 21 states.

On February 12th, 2025, AMH announced it was increasing its quarterly dividend 15.4% to $0.30 per share.

On May 1st, 2025, AMH reported first quarter results. For the quarter, revenue grew 8.4% to $459.3 million, which was $10 million ahead of estimates. FFO of $0.46 compared favorably to FFO of $0.43 in the previous year and was $0.01 better than expected.

For the quarter, AMH had a same-home average occupied day percentage of 95.9%, which was a 20 basis point decrease from the prior year. New leases signed had rental rate growth of 1.4% while renewal rental rates increased 4.5%, leading to a blended growth rate of 3.6%.

Occupied homes of 57,866 compared to 56,065 in the first quarter of 2024. Average monthly rents per property were up 4.5% while property expenses increased 4.2% to $121.7 million.

Click here to download our most recent Sure Analysis report on American Homes 4 Rent (AMH) (preview of page 1 of 3 shown below):

Apartment REITs #4: Equity LifeStyle Properties (ELS)

Equity LifeStyle Properties, Inc is a real estate investment trust which engages in the ownership and operation of lifestyle-oriented properties consisting primarily of manufactured home and recreational vehicle communities.

Equity LifeStyle Properties operates through the following segments: Property Operations; and Home Sales and Rentals Operations.

The Property Operations segment owns and operates land lease properties. The Home Sales and Rentals Operations segment purchases, sells, and leases homes at the properties.

Today, Equity LifeStyle Properties, Inc. owns or has a controlling interest in more than 400 communities and resorts in 33 states and British Columbia, with more than 165,000 sites.

On April 21st, 2025, Equity LifeStyle Properties reported first-quarter results. Normalized Funds from Operations (FFO) per share rose 6.7% year-over-year to $0.83, aligning with the midpoint of its guidance. However, net income per share declined slightly to $0.57, a 3.0% decrease from the prior year, and reported FFO per share dropped 2.7% to $0.83.

Core property operating revenues rose 2.9%, while expenses increased by a more modest 1.5%, resulting in a 3.8% boost in core income from property operations (excluding property management).

Click here to download our most recent Sure Analysis report on ELS (preview of page 1 of 3 shown below):

Apartment REITs #3: UMH Properties (UMH)

UMH Properties is a REIT that is one of the largest manufactured housing landlords in the U.S. It was founded in 1968 and currently owns tens of thousands of developed sites and 135 communities located across the midwestern and northeastern U.S.

As manufactured homes are cheaper than conventional homes, UMH Properties has proved resilient to recessions.

Source: Investor Presentation

On May 1, 2025, UMH Properties, Inc. reported its financial results for the first quarter ended March 31, 2025. The company achieved total income of $61.2 million, marking a 6% increase from the same period in 2024. Normalized Funds From Operations (FFO) per diluted share rose by 5% to $0.23, reflecting improved operational performance.

Net loss attributable to common shareholders narrowed significantly to $271,000, or $0.00 per diluted share, compared to a net loss of $6.3 million, or $0.09 per share, in the prior-year quarter. Rental and related income increased by 8% to $54.6 million, driven by higher occupancy rates and effective rental rate implementation.

Same-property occupancy improved by 70 basis points to 87.9%, and rental home occupancy increased to 94.6% from 94.0% at year-end 2024.

Click here to download our most recent Sure Analysis report on UMH Properties (UMH) (preview of page 1 of 3 shown below):

Apartment REITs #2: UDR, Inc. (UDR)

UDR, also known as United Dominion Realty Trust, is a luxury apartment REIT. The trust owns, operates, acquires, renovates, and develops multifamily apartment communities in high barrier-to-entry markets in the U.S.

A high barrier-to-entry market consists of limited land for new construction, complicated entitlement processes, low single-family home affordability and strong employment growth potential.

The majority of UDR’s real estate property value is established in Washington D.C., New York City, Orange County, California, and San Francisco.

Source: Investor Presentation

On February 5th, 2025, UDR announced its 2025 dividend will be $1.72 per share, which represents a 1.2% increase and marks the company’s 14th consecutive annual dividend increase.

UDR reported first quarter 2025 results on April 30th, 2025. The company’s adjusted funds from operations was flat year-over-year at $0.61 per share.

The quarterly AFFO payout ratio of 70% is relatively safe for a REIT that must pay out the majority of its earnings to shareholders. Physical occupancy of the real estate portfolio was flat compared to the prior year period at 97.2%.

The trust maintained its guidance for 2025, forecasting AFFO per share of $2.45 to $2.55, for a midpoint of $2.50. The company also anticipates 1.25% to 3.25% growth in same-store revenue, 2.75% to 4.25% growth in same-store expenses, and 0.5% to 3.0% growth of same-store net operating income over 2024.

Click here to download our most recent Sure Analysis report on UDR (preview of page 1 of 3 shown below):

Apartment REITs #1: American Assets Trust (AAT)

American Assets Trust is a REIT that was formed in 2011 as a successor of American Assets, a privately held company founded in 1967.

AAT has great experience in acquiring, improving and developing office, retail and residential properties throughout the U.S., primarily in Southern California, Northern California, Oregon, Washington and Hawaii.

Its office portfolio and its retail portfolio comprise of approximately 4.0 million and 3.1 million square feet, respectively. AAT also owns more than 2,000 multifamily units.

Source: Investor Presentation

In late April, AAT reported (4/29/25) financial results for the first quarter of fiscal 2025. Same-store net operating income grew 3% but funds from operations (FFO) per share dipped -10% over the prior year’s quarter due to litigation income received in the prior year’s period and higher interest expense.

Due to high interest expense, AAT reaffirmed its weak guidance for 2025, expecting FFO per share of $1.87-$2.01.

Click here to download our most recent Sure Analysis report on American Assets Trust (AAT) (preview of page 1 of 3 shown below):

Final Thoughts

Many apartment REITs pass under the radar of the majority of investors due to their mundane business model.

However, some of these REITs have offered exceptionally high returns to their shareholders. In addition, apartment REITs have proved resilient to recessions, as the demand for housing remains strong even during rough economic periods.

The above 10 apartment REITs are interesting candidates for the portfolios of income-oriented investors, especially given the increasing risk of an upcoming recession.

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:

High-Yield Individual Security Research

Other Sure Dividend Resources

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