Updated on October 1st, 2025 by Bob Ciura
For investors seeking to enhance their income levels, Real Estate Investment Trusts (REITs) present a compelling opportunity. These companies own and manage real estate properties, leasing them to tenants or investing in real estate-backed loans, thereby generating a consistent income stream.
One of the key advantages of REITs is their obligation to distribute at least 90% of their taxable income to shareholders in the form of dividends. In exchange for this requirement, REITs typically do not pay corporate taxes, making them an attractive option for income-focused investors.
Currently, there are over 200 REITs available for investment, many of which offer high dividend yields exceeding 5%. However, it’s crucial for investors to conduct thorough assessments of these companies to ensure that high yields are sustainable and not merely a result of market fluctuations.
While high yields can be enticing, they do not automatically indicate a solid investment. Factors such as dividend safety, valuation, management quality, balance sheet health, and growth potential should all be considered. We encourage investors to use the analysis provided here as a starting point for their research, especially when considering high-yield securities.
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High-Yield REIT No. 10: Blackstone Mortgage Trust (BXMT)
Blackstone Mortgage Trust focuses on the origination and purchase of senior loans secured by commercial properties in North America and Europe. The majority of its asset portfolio consists of floating-rate loans backed by first-priority mortgages, primarily from office, hotel, and manufactured housing properties.
In its recent financial report for Q2 2025, Blackstone Mortgage Trust announced a net income of $7.0 million, or $0.04 per share, marking a return to profitability. The company maintained dividends at $0.47 per share, yielding an annualized 9.7% based on its share price of $19.36.
High-Yield REIT No. 9: Chimera Investment Corp. (CIM)
Chimera Investment Corporation is a specialty finance REIT that invests in a diversified portfolio of mortgage assets, including residential mortgage loans and real estate-related securities. The company reported a core earnings-per-share of $0.39 for Q2 2025, a slight decrease from the previous quarter.
Chimera has faced challenges due to rising interest rates, which have pressured its margins. The company’s book value per share decreased by 1%, reflecting the impact of these economic conditions.
High-Yield REIT No. 8: Community Healthcare Trust (CHCT)
Community Healthcare Trust invests in income-producing properties linked to the healthcare sector, including medical offices and rehabilitation facilities. In its latest report, the trust noted a 47% drop in funds from operations per share, largely due to a reserve on interest receivable from a tenant.
Despite these challenges, the trust has plans for future acquisitions, indicating a proactive approach to growth.
High-Yield REIT No. 7: Pennymac Mortgage Investment Trust (PMT)
PennyMac Mortgage Investment Trust specializes in residential mortgage loans and related assets. The trust reported a net investment income of $70.2 million for Q2 2025, although it experienced a loss per share of $0.04.
High-Yield REIT No. 6: Innovative Industrial Properties (IIPR)
Innovative Industrial Properties focuses on properties used for cannabis cultivation and production. The company reported a revenue decline of 21% year-over-year, primarily due to tenant defaults. However, it continues to maintain a high occupancy rate of 98.4%.
High-Yield REIT No. 5: AGNC Investment Corp. (AGNC)
AGNC Investment Corp. invests primarily in agency mortgage-backed securities. The company reported a comprehensive loss of $0.13 per share for Q2 2025, driven by a decline in book value and net interest spread.
High-Yield REIT No. 4: Dynex Capital (DX)
Dynex Capital invests in mortgage-backed securities on a leveraged basis. The company reported a comprehensive loss of $(0.11) per share for Q2 2025, despite declaring dividends of $0.51 per share.
High-Yield REIT No. 3: Ellington Credit Co. (EARN)
Ellington Credit Co. focuses on residential mortgage-backed securities. The company reported net income of $10.2 million for Q2 2025, with a strong cash position of $36.6 million.
High-Yield REIT No. 2: ARMOUR Residential REIT (ARR)
ARMOUR Residential invests in residential mortgage-backed securities, including those backed by government-sponsored entities. The company reported a GAAP net loss of $78.6 million for Q2 2025, but maintained a strong liquidity position.
High-Yield REIT No. 1: Orchid Island Capital Inc (ORC)
Orchid Island Capital focuses on investing in residential mortgage-backed securities. The company reported a net loss of $33.6 million for Q2 2025, but continues to maintain strong liquidity and a significant borrowing capacity.
Investors should approach these high-yield REITs with caution, as elevated yields often come with increased risks. Conducting thorough research and analysis is essential for making informed investment decisions.
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