High-Yield REITs as Income Powerhouses in a 2025 Downturn

In 2025, as macroeconomic headwinds loom—ranging from Trump-era tariffs to global growth concerns—investors are increasingly turning to high-yield REITs as a bulwark against volatility. These real estate investment trusts, with their mandatory 90% payout ratios and long-term lease structures, offer a unique blend of income stability and defensive positioning. According to a report by Morningstar, REITs have outperformed broad equities this year, largely due to their insulation from tariff-driven supply chain shocks and their reliance on sticky, inflation-linked rental contracts [1]. Let’s dissect 12 REITs that stand out for their dividend safety, recession resilience, and compelling yields.

1. Realty Income (O): The Dividend Machine

Realty Income, the “Monthly Dividend Company,” has paid uninterrupted dividends for 56 years—a testament to its A- credit rating and 98.5% occupancy rate [3]. With a 5.6% yield and a portfolio of 15,000+ properties leased to essential retailers like Dollar General and Walgreens, O thrives in downturns. Its focus on premium locations and 15+ year leases ensures cash flow durability. As Simply Safe Dividends notes, “O’s dividend safety score is ‘Safe,’ and its recession resilience is unmatched in the retail sector” [1].

2. Main Street Capital (MAIN): The BDC Powerhouse

As a business development company (BDC), MAIN lends to over 150 mid-market firms, diversifying risk across industries. Its 4.5% yield and 17-year dividend streak reflect conservative leverage (debt/equity of 0.8x) and a 92% investment-grade tenant base [1]. In a recession, MAIN’s high-yield loans and fee income provide a buffer. “MAIN’s diversified portfolio and strong balance sheet make it a rare ‘Safe’ scorer in the BDC space,” says US News [2].

3. Agree Realty (ADC): The Retail Anchor

ADC’s 4.3% yield is backed by 2,000+ single-tenant properties leased to investment-grade retailers like Walmart and CVS. Its 96%+ occupancy rate and BBB+ credit rating underscore its stability. “ADC’s focus on essential retail and long-term net leases makes it a recession-proof play,” according to Morningstar [3]. The REIT’s conservative debt levels (FFO/interest of 8x) further bolster its safety.

4. W.P. Carey (WPC): The Global Net-Lease Titan

WPC’s 5.29% yield stems from its global portfolio of industrial and retail properties leased to blue-chip tenants like Amazon and Procter & Gamble. With a “Safe” dividend score and 98% occupancy, WPC’s long-dated, inflation-indexed leases ensure cash flow resilience. “WPC’s international diversification and high tenant credit quality make it a standout in the net-lease sector,” notes Simply Safe Dividends [5].

5. Healthpeak Properties (DOC): The Healthcare Haven

DOC’s 7.16% yield is fueled by its focus on medical offices, senior housing, and life sciences labs—sectors with inelastic demand. Its 99% occupancy rate and 95% investment-grade tenant base (e.g., Tenet Healthcare, HCA) ensure stability. “Healthcare REITs like DOC are recession-resistant due to their essential services and pricing power,” says a Morningstar analyst [1].

6. Americold Realty (COLD): The Cold Storage King

COLD’s 6.63% yield reflects its dominance in cold storage warehouses, a sector booming with e-commerce and global food supply chain needs. Its 97% occupancy and 20+ year lease terms provide long-term visibility. “COLD’s undervalued assets and essential infrastructure make it a high-conviction play,” argues US News [2].

7. Easterly Government Properties (DEA): The Government Guarantor

DEA’s 7.9% yield is underpinned by 100% occupancy and tenants like the U.S. Postal Service and the Department of Defense. Its government-backed leases and 13-year dividend streak make it a fortress in downturns. “DEA’s risk-free tenant base and inflation-linked rents are unmatched,” says a Seeking Alpha contributor [4].

8. Blackstone Mortgage Trust (BXMT): The Mortgage REIT Outlier

BXMT’s 9.6% yield is a double-edged sword, but its investment-grade rating and focus on commercial mortgage-backed securities (CMBS) provide a buffer. “BXMT benefits from rate cuts and has a strong capital structure, making it a high-yield contender,” according to Money.com [2].

9. NNN REIT (NNN): The Retail Staple

NNN’s 5.7% yield is supported by 3,000+ single-tenant retail properties leased to Fortune 500 companies. Its 99.3% occupancy and 20-year average lease duration ensure cash flow consistency. “NNN’s recession resilience stems from its high-credit tenants and defensive property types,” says Sure Dividend [5].

10. American Tower (AMT): The Infrastructure Behemoth

AMT’s 2.8% yield may trail peers, but its 98% occupancy and 20-year lease terms with telecom giants like Verizon and AT&T make it a cash cow. “AMT’s infrastructure model is recession-resistant, as connectivity demand is inelastic,” notes Morningstar [1].

11. Ventas (VTR): The Healthcare Staple

VTR’s 4% yield is bolstered by its portfolio of senior housing and medical office buildings leased to operators like HCA and Tenet. Its 96% occupancy and 90% investment-grade tenant base ensure stability. “VTR’s healthcare focus and long-term leases make it a defensive play,” says REIT.com [3].

12. Public Storage (PSA): The Self-Storage Giant

PSA’s 4.03% yield reflects its dominance in self-storage, a sector with recurring revenue and pricing power. Its 93% occupancy and 36.5% ROE (vs. industry 12%) highlight its strength. “PSA’s essential service model and strong balance sheet make it a recession-proof income generator,” argues Yahoo Finance [5].

Conclusion: Diversify, But Stay Focused

While no REIT is entirely immune to a severe downturn, the 12 above combine high yields with defensive traits like long-term leases, investment-grade tenants, and conservative leverage. For income-focused investors, a diversified basket of these REITs—weighted toward healthcare, government, and essential retail—offers a compelling way to navigate 2025’s uncertainties. As always, monitor interest rate trends and sector-specific risks, but the REIT sector’s mandatory payout ratios and sticky cash flows make it a cornerstone of any resilient portfolio.

Source:
[1] REITs: A haven in a Trumpian world? [https://www.morningstar.com.au/personal-finance/reits-haven-trumpian-world]
[2] 7 Best REITs to Buy for a Recession [https://money.usnews.com/investing/real-estate-investments/slideshows/best-reits-to-buy-for-a-recession]
[3] 2025 Monthly Dividend Stocks List: All 76 Ranked and Analyzed [https://www.simplysafedividends.com/world-of-dividends/posts/42-2025-monthly-dividend-stocks-list-all-76-ranked-and-analyzed]
[4] Stop Buying These 3 REITs (And Buy These Instead) [https://seekingalpha.com/article/4788261-stop-buying-3-reits-and-buy-these-instead]
[5] 10 High-Yield Stocks For Lasting Retirement Income [https://www.suredividend.com/high-yield-stocks-lasting-retirement-income/]