Updated on June 1st, 2025 by Bob Ciura
Investors looking to generate higher income levels from their investment portfolios should look at Real Estate Investment Trusts or REITs.
These are companies that own real estate properties and lease them to tenants, or invest in real estate backed loans, both of which generate a steady stream of income.
The bulk of their income is then passed on to shareholders through dividends.
You can see all 200+ REITs here.
You can download our full list of REITs, along with important metrics such as dividend yields and market capitalizations, by clicking on the link below:
The beauty of REITs for income investors is that they are required to distribute 90% of their taxable income to shareholders annually in the form of dividends. In return, REITs typically do not pay corporate taxes.
As a result, many of the 200+ REITs we track offer high dividend yields of 5%+.
But not all high-yielding stocks are automatic buys. Investors should carefully assess the fundamentals to ensure that high yields are sustainable.
Note that while the securities in this article have very high yields, a high yield alone does not make for a solid investment. Dividend safety, valuation, management, balance sheet health, and growth are also very important factors.
We urge investors to use the analysis below as informative but to do significant due diligence before buying into any security – especially high-yield securities.
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: Chimera Investment Corp. (CIM)
Chimera Investment Corporation is a real estate investment trust (REIT) that is a specialty finance company. The company’s primary business is in investing through subsidiaries in a diversified portfolio of mortgage assets, including residential mortgage loans, Non-Agency RMBS, Agency CMBS, and other real estate related securities.
Chimera’s income is predominantly obtained by the difference between the income the company earns on its assets and financing and hedging costs.
The company funds the purchase of assets through several funding sources: asset securitization, repurchase agreements (repo), warehouse lines, and equity capital.
In early May, Chimera released (5/8/25) results for the first quarter of fiscal 2025. Its core earnings-per-share grew 11% sequentially, from $0.37 to $0.41, thanks to lower provisions for credit losses. Chimera beat the analysts’ consensus by $0.01 and the stock surged 8% on the day of its earnings release.
Book value per share grew 7%. Chimera has been facing a strong headwind from the surge of interest rates to nearly 23-year highs. An unexpected increase in interest rates is a strong headwind for Chimera, as it exerts great pressure on its margins.
Click here to download our most recent Sure Analysis report on CIM (preview of page 1 of 3 shown below):
High-Yield REIT No. 9: Community Healthcare Trust (CHCT)
Community Healthcare Trust is a REIT which owns income-producing real estate properties linked to the healthcare sector, such as physician offices, specialty centers, behavioral facilities, inpatient rehabilitation facilities, and medical office buildings, in the trust’s target sub-markets within the United States.
The trust has investments in 201 properties in 36 states, totaling 4.5 million square feet.
On April 29th, 2025, Community Healthcare Trust reported first quarter results for the period ending March 31st, 2025. Funds from operations (FFO) per share dipped 11% to $0.47 from $0.53 in the prior year quarter. Adjusted FFO per share also dropped 7% to $0.55.
During the quarter, Community Healthcare acquired one property for $9.7 million. The trust also has seven properties under definitive purchase agreements, with a combined purchase price of roughly $170 million, expected to close from 2025 through 2027.
Click here to download our most recent Sure Analysis report on CHCT (preview of page 1 of 3 shown below):
High-Yield REIT No. 8: Arbor Realty Trust (ABR)
Arbor Realty Trust is a nationwide mortgage real estate investment trust (REIT) that acts as a direct lender and operates in two reporting segments: Agency Business and Structured Business. The trust provides loan origination and servicing for multifamily, seniors housing, healthcare, and other diverse commercial real estate assets.
Arbor Realty’s specific focus is government-sponsored enterprise products, although its platform also includes commercial mortgage backed securities (CMBS), bridge and mezzanine loans, and preferred equity issuances.
On May 2, 2025, Arbor Realty Trust reported its financial results for the first quarter ended March 31, 2025. The company posted a GAAP net income of $30.4 million, or $0.16 per diluted common share, a significant decline from $57.9 million, or $0.31 per share, in the same period of the previous year.
Distributable earnings were $57.3 million, or $0.28 per share, down from $96.7 million, or $0.47 per share, in Q1 2024. Excluding $7.1 million in realized losses from the sale of two real estate owned properties, distributable earnings would have been $0.31 per share.
Click here to download our most recent Sure Analysis report on ABR (preview of page 1 of 3 shown below):
High-Yield REIT No. 7: Pennymac Mortgage Investment Trust (PMT)
PennyMac Mortgage Investment Trust invests in residential mortgage loans and mortgage-related assets. The trust focuses on creating mortgage-related assets through its correspondent production activities, which includes mortgage servicing rights. PennyMac operates as a mortgage real estate investment trust (REIT).
PMT has three segments: credit sensitive strategies, interest rate sensitive strategies and correspondent production. PennyMac Mortgage began its operations in 2009 with $324 million of assets, which has grown to $14.9 billion as of March 31st, 2025.
PMT is externally managed by PNMAC Capital Management, which itself is a wholly owned subsidiary of PennyMac Financial Services (PFSI). As a result of being externally managed, PMT has only one employee on record.
PennyMac Mortgage Investment Trust reported first quarter 2025 results on April 22nd, 2025. PMT reported net investment income of $44.5 million, which was a 40% decrease from NII of $74.2 million in the prior year quarter.
The trust generated a ($0.01) loss per share in the quarter, which compares unfavorably to the $0.39 earned in the year-ago quarter.
The book value per share decreased from $15.87 on December 31st, 2024 to $15.43 on March 31st, 2025. In the first quarter, the company added $47 million in new mortgage servicing rights (MSRs).
Click here to download our most recent Sure Analysis report on PMT (preview of page 1 of 3 shown below):
High-Yield REIT No. 6: Innovative Industrial Properties (IIPR)
Innovative Industrial Properties, Inc. is a single-use “specialty REIT” that exclusively focuses on owning properties used for the cultivation and production of cannabis.
Approximately 92% of IIPR’s properties are industrial, with retail comprising 2% and blended properties the remaining 6%.
Source: Investor Presentation
On May 7th, 2025, IIPR posted its Q1 results for the period ending March 31st, 2025. Revenues and normalized AFFO per share were $71.7 million and $1.94, down 5% and 12.2% year-over-year, respectively.
The fall in revenues was primarily due to partial or unpaid rent from defaulting tenants, lease modifications that deferred or reduced rent, and the reclassification of certain leases to sales-type, which are now recorded as deposit liabilities.
These headwinds were partially offset by contributions from new lease agreements and contractual rent escalations. The drop in AFFO per share reflected lower revenue and higher impairment charges, along with reduced stock-based compensation and interest income compared to the prior year.
Click here to download our most recent Sure Analysis report on IIPR (preview of page 1 of 3 shown below):
High-Yield REIT No. 5: AGNC Investment Corp. (AGNC)
American Capital Agency Corp is a mortgage real estate investment trust that invests primarily in agency mortgage–backed securities (or MBS) on a leveraged basis.
The firm’s asset portfolio is comprised of residential mortgage pass–through securities, collateralized mortgage obligations (or CMO), and non–agency MBS. Many of these are guaranteed by government–sponsored enterprises.
Source: Investor Presentation
On April 22, 2025, AGNC Investment Corp. reported its financial results for the first quarter of 2025. The company announced a comprehensive income of $0.12 per common share, which included $0.02 in net income and $0.10 in other comprehensive income.
The tangible net book value per common share decreased by 1.9% from the previous quarter, ending at $8.25 as of March 31, 2025. AGNC achieved a 2.4% economic return on tangible common equity for the quarter, comprising $0.36 in dividends declared and a $0.16 decline in tangible book value.
The company’s net spread and dollar roll income was $0.44 per share, an increase from $0.37 in the prior quarter, reflecting improved earnings from its investment portfolio.
Click here to download our most recent Sure Analysis report on AGNC Investment Corp (AGNC) (preview of page 1 of 3 shown below):
High-Yield REIT No. 4: Dynex Capital (DX)
Dynex Capital invests in mortgage–backed securities (MBS) on a leveraged basis in the United States. It invests in agency and non–agency MBS consisting of residential MBS, commercial MBS (CMBS), and CMBS interest–only securities.
Source: Investor Presentation
On April 21, 2025, Dynex Capital, Inc. reported its financial results for the first quarter ended March 31, 2025. The company achieved a total economic return of $0.33 per common share, representing 2.6% of the beginning book value, comprised of dividends declared of $0.47 per common share offset by a decline in book value of $0.14 per share. Book value per common share stood at $12.56 as of March 31, 2025.
Dynex reported a comprehensive income of $0.16 per common share and a net loss of $0.06 per common share. Net interest income increased to $17.1 million, a 147% surge from the previous quarter, driven by new investments at attractive yields and declining financing costs.
Click here to download our most recent Sure Analysis report on DX (preview of page 1 of 3 shown below):
High-Yield REIT No. 3: Ellington Credit Co. (EARN)
Ellington Credit Co. acquires, invests in, and manages residential mortgage and real estate related assets. Ellington focuses primarily on residential mortgage-backed securities, specifically those backed by a U.S. Government agency or U.S. government–sponsored enterprise.
Agency MBS are created and backed by government agencies or enterprises, while non-agency MBS are not guaranteed by the government.
On March 12th, 2025, Ellington Residential reported its fourth quarter results for the period ending December 31, 2024. The company generated a net loss of $(2.0) million, or $(0.07) per share.
Ellington achieved adjusted distributable earnings of $7.8 million in the quarter, leading to adjusted earnings of $0.27 per share, which covered the dividend paid in the period.
Ellington’s net interest margin was 5.07% overall. At quarter end, Ellington had $31.8 million of cash and cash equivalents, and $79 million of other unencumbered assets.
Click here to download our most recent Sure Analysis report on EARN (preview of page 1 of 3 shown below):
High-Yield REIT No. 2: ARMOUR Residential REIT (ARR)
ARMOUR Residential invests in residential mortgage-backed securities that include U.S. Government-sponsored entities (GSE) such as Fannie Mae and Freddie Mac.
It also includes Ginnie Mae, the Government National Mortgage Administration’s issued or guaranteed securities backed by fixed-rate, hybrid adjustable-rate, and adjustable-rate home loans.
Unsecured notes and bonds issued by the GSE and the US Treasury, money market instruments, and non-GSE or government agency-backed securities are examples of other types of investments.
On April 23, 2025, ARMOUR Residential REIT reported its financial results for the first quarter of 2025. The company announced a GAAP net income available to common stockholders of $24.3 million, or $0.32 per common share.
Distributable earnings, a non-GAAP measure, were $64.6 million, equating to $0.86 per common share. Net interest income for the quarter stood at $36.3 million.
The average interest income on interest-earning assets was 5.00%, while the interest cost on average interest-bearing liabilities was 4.51%, resulting in an economic net interest spread of 1.88%. The company’s book value per common share decreased to $18.59 from $19.07 at the end of 2024, and the total economic return for the quarter was 1.26%.
Click here to download our most recent Sure Analysis report on ARMOUR Residential REIT Inc (ARR) (preview of page 1 of 3 shown below):
High-Yield REIT No. 1: Orchid Island Capital Inc (ORC)
Orchid Island Capital is a mortgage REIT that is externally managed by Bimini Advisors LLC and focuses on investing in residential mortgage-backed securities (RMBS), including pass-through and structured agency RMBSs.
These financial instruments generate cash flow based on residential loans such as mortgages, subprime, and home-equity loans.
Source: Investor Presentation
On April 24, 2025, Orchid Island Capital reported its financial results for the first quarter of 2025. The company announced a net income of $17.1 million, or $0.18 per common share, a decrease from $19.8 million, or $0.38 per share, in the same quarter of the previous year.
Net interest income improved to $19.7 million, driven by a higher average yield on Agency RMBS of 5.41% and a reduction in borrowing costs to 4.29%.
Total expenses for the quarter were $4.2 million, and the company recorded net realized and unrealized gains of $1.6 million on RMBS and derivative instruments. The book value per share declined to $7.94 as of March 31, 2025, from $8.09 at the end of 2024.
Click here to download our most recent Sure Analysis report on Orchid Island Capital, Inc. (ORC) (preview of page 1 of 3 shown below):
Final Thoughts
REITs have significant appeal for income investors due to their high yields. These 10 extremely high-yielding REITs are especially attractive on the surface, although investors should be aware that abnormally high yields are often accompanied by elevated risks.
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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