Rate Cuts Fuel REITs: 6%-13% Dividend Yields from Landlords Riding Powell's Pivot Higher

Real estate investment trusts (REITs) are set to surge as the Federal Reserve cuts interest rates, with yields ranging from 6% to 13%. REITs act as "bond proxies" that move opposite to interest rates, and the direction is now clear. Six REITs are highlighted, including Healthpeak Properties and Broadstone Net Lease, which have perked up since the rate cut in September.

The Federal Reserve's recent rate cuts are set to boost real estate investment trusts (REITs), with yields ranging from 6% to 13%. REITs, acting as "bond proxies," typically move opposite to interest rates, and the direction is now clear. The Fed's long-awaited pivot is fueling the rebound in REITs, as borrowing costs fall and dividend yields shine next to shrinking bond yields These 6%- to 13%-Paying Landlords Love Jerome Powell Right Now^[1].

Healthpeak Properties (NYSE: DOC), with a 6.5% dividend yield, is one of the REITs benefiting from the rate cut. Healthpeak owns 702 properties across outpatient medical, labs, and senior housing. The company's blend of properties has weighed on 2025 results due to weak lab performance, but this "property patient" has perked up since August, when a sad jobs report foreshadowed the September rate cut These 6%- to 13%-Paying Landlords Love Jerome Powell Right Now^[1].

Broadstone Net Lease (NYSE: BNL), with a 6.3% dividend yield, specializes in single-tenant commercial properties. Its portfolio is made up of 766 properties in 44 states and four Canadian provinces, leased out to 205 tenants representing more than 50 industries. Broadstone deals in "net leases," where tenants cover taxes, insurance, and maintenance costs, delivering steady cash flows These 6%- to 13%-Paying Landlords Love Jerome Powell Right Now^[1].

Global Net Lease (NYSE: GNL), with a 9.4% dividend yield, is another commercial net-lease operator with a significant international bent. GNL's 911-property portfolio spans 10 countries, with North American operations accounting for 70% of straight-line rents. The company has been improving its operations, including the sale of its multitenant retail portfolio and deleveraging These 6%- to 13%-Paying Landlords Love Jerome Powell Right Now^[1].

Armada Hoffler Properties (NYSE: AHH) and Brandywine Realty Trust (NYSE: BDN) are also benefiting from declining rates and return-to-office mandates. However, both have cut payouts this year, and their balance sheets leave no margin for error These 6%- to 13%-Paying Landlords Love Jerome Powell Right Now^[1].

The Federal Reserve's decision to reduce rates by 0.25 points on September 17 was driven by White House pressure, with President Trump attempting to influence monetary policy Trump Can’t Fix the Deficit by Attacking the Federal Reserve^[2]. The Fed's rate cuts are expected to boost REITs, but the impact on the national debt's interest costs is uncertain. While lower interest rates could reduce Washington's interest on the national debt, the market may demand higher interest rates to compensate for higher inflation expectations resulting from the rate cuts Trump Can’t Fix the Deficit by Attacking the Federal Reserve^[2].