The Best REIT Stocks to Invest $1,000 In Right Now: High Yield, Undervalued Opportunities

The real estate investment trust (REIT) sector is primed for opportunity in 2025, offering investors a mix of steady dividends and growth potential amid shifting market dynamics. With interest rates stabilizing and sectors like healthcare and life sciences driving demand, now is a strategic time to allocate capital to REITs. Here’s how to deploy $1,000 into five top-performing REITs, backed by data-driven analysis.

1. Park Hotels & Resorts (PK): Luxury Hospitality’s Dividend Beast

Current Price (April 2025): $194.50
Forward Dividend Yield: 9.30%
52-Week Range: $183.08–$321.31

Park Hotels & Resorts dominates the luxury hotel space with 22,711 rooms across 37 premium properties, including iconic resorts like the Ritz-Carlton and St. Regis. Its 9.30% dividend yield—the highest on this list—is a magnet for income seekers. Despite post-pandemic occupancy still lagging 7% behind 2019 levels, Park’s focus on operational efficiencies and RevPAR (revenue per available room) growth positions it to capitalize on rebounding leisure travel.

Why Invest?
- Valuation: Trading at 51% below Morningstar’s fair value estimate, PK offers both income and upside.
- Risk Factor: Elevated hotel supply and competition from Airbnb remain headwinds, but its premium portfolio mitigates this.

$1,000 Allocation: At $194.50 per share, you’d own ~5 shares, generating ~$93/year in dividends.

2. Kilroy Realty (KRC): Tech Hub Office Powerhouse

Current Price (April 2025): $32.76
Forward Dividend Yield: 6.57%
52-Week Range: $29.31–$33.49

Kilroy Realty owns 17 million sq. ft. of prime office and life science space in tech hubs like Los Angeles, Austin, and Seattle. Its 6.57% dividend yield and 44% undervaluation make it a standout in an office sector still grappling with hybrid work trends.

Why Invest?
- Growth Catalysts: Life science demand and ESG-aligned properties (LEED-certified buildings) drive long-term resilience.
- Risk Factor: Office vacancy rates remain elevated in key markets, but KRC’s focus on high-growth industries reduces exposure to traditional office declines.

$1,000 Allocation: ~30 shares yield ~$197 annually.

3. Healthpeak Properties (DOC): Healthcare’s Diversified Play

Current Price (April 2025): $20.08
Forward Dividend Yield: 6.09%
52-Week Range: $17.83–$24.00

Healthpeak has pivoted from senior housing to life science and medical office assets, now accounting for 55% of its portfolio. This shift aligns with aging demographics and ACA reforms, making it a top pick for healthcare exposure.

Why Invest?
- Valuation: Trading at 27% below fair value, DOC’s merger with Physicians Realty Trust in 2024 adds scale and diversification.
- Risk Factor: Rising healthcare costs could pressure tenants, but its defensive sector focus provides stability.

$1,000 Allocation: ~50 shares yield ~$304 annually.

4. Boston Properties (BXP): Office Resilience in Prime Markets

Current Price (April 2025): $57.72
Forward Dividend Yield: 5.85%
52-Week Range: $48.30–$78.00

Boston Properties manages 53 million sq. ft. of Class A office space in NYC, San Francisco, and Seattle. Its 5.85% yield and 26% undervaluation highlight its appeal despite office vacancy challenges.

Why Invest?
- Strengths: Diversification into life sciences (5.6 million sq. ft.) and high-quality assets in growth markets.
- Risk Factor: Office demand remains uncertain, but BXP’s premium locations offer a moat against remote work trends.

$1,000 Allocation: ~17 shares yield ~$100 annually.

5. Realty Income (O): The “Monthly Dividend Company”

Forward Dividend Yield: 5.64%
Price/Fair Value Ratio: 0.76

While Realty Income’s April 2025 stock price isn’t explicitly stated, its 5.64% yield and focus on triple-net leases in defensive sectors (e.g., healthcare, service-oriented retail) make it a reliable income generator.

Why Invest?
- Safety: 80% of tenants operate in recession-resistant industries.
- Growth Limit: Limited by rising interest rates, but its steady dividend history (97 consecutive monthly payouts) is unmatched.

$1,000 Allocation: Assuming a price near its fair value (~$20.00 based on 0.76 ratio), ~50 shares yield ~$564 annually.

Conclusion: Build a Balanced REIT Portfolio

The best $1,000 REIT allocation combines high yield and undervaluation:
1. Park Hotels & Resorts (PK): Prioritize for its 9.30% yield and recovery upside.
2. Healthpeak Properties (DOC): Leverage its 6.09% yield and healthcare tailwinds.
3. Kilroy Realty (KRC): Pair with DOC for tech/life science exposure.

Key Statistics to Remember:
- PK’s 51% undervaluation vs. BXP’s 26% discount highlight differing risk/reward profiles.
- Healthcare REITs (DOC) outperformed the sector by 38.23% over three years (vs. S&P 500’s 28.61%).
- KRC’s 44% undervaluation aligns with its 12-month price target of $24.00 (+34% upside).

Avoid overconcentration in any single sector. Pair high-yield picks like PK and DOC with more stable names like Realty Income to balance risk. With REITs trading 8.4% below fair value overall, now is the time to act.

Final Takeaway: Deploy $1,000 across PK (40%), DOC (30%), and KRC (30%) for a blend of income, growth, and undervaluation. Monitor sector-specific risks—hotel supply, office vacancy, and interest rates—but the data shows these REITs are positioned to thrive in 2025.