Real Estate Investment Trusts (REITs) are an excellent source of generating passive income and diversifying the portfolio. Investing in real estate is like holding a different asset class which helps to seek reasonable returns, capital appreciation, and preservation. These three are the core tenants of a successful investment. Due to the boom in the country's economy, investment in real estate is offering higher returns. It lures more and more people to invest in the sector. Together with the higher returns, the real estate stocks also provide exposure to the companies building and operating commercial, residential and industrial properties. 

Due to the availability of several options, investors are generally befuddled while investing in the real estate sector. But by making the right choice it's easy to grow your hard-earned money by leaps & bounds. If you are also confused and don’t know which real estate stock to buy, this article is for you. It will introduce you to the top five real estate stocks that have shown the characteristics worth considering while planning to step into the real estate market. These five best real estate stocks have the momentum to grow in market value and offer higher returns to investors without hammering the nails. 

Remember- “You might find it difficult to grow in real estate, but it is not impossible. All you need is one right decision and a little knowledge.”

SIMON PROPERTY GROUP (SPG)

This real estate company owns several retail properties right from high-end shopping malls to other outlets like dining, entertainment, etc. It is the owner of some of the largest malls in the United States. The portfolio of SPG mainly contains properties from Asia, Europe, and the U.S. It specializes in developing, leasing, managing, expanding, and acquisition of real estate assets. With a plethora of properties, it offers vast gathering space for millions of people. By doing so, Simon Property Group makes billions annually. Over the years, the CEO of SPG has taken big steps that show his solid management and authentic leadership. 

PUBLIC STORAGE (PSA)

Public Storage is one of the leading real estate investment trusts that has ownership of self-storage facilities. This provides various spaces for lease that can be used for both personal and business purposes. As per the company’s financial statement, it holds an equity interest in over 2,500 self-storage facilities, making it the world’s largest owner in the sector. PSA portfolio is made of properties in more than 38 states of the United States Of America. After the acquisition of Shurgard Self Storage SA, PSA made its global presence. If you are looking to invest in Public Storage, you will get investment options in commercial properties, primarily multi-tenant flex, office, and industrial parks.

AMERICAN TOWER CORPORATION (AMT)

American Tower Corporation is one of the largest real estate investment trusts in the world. It derives its revenue from Wireless and Broadcast Communication Services in the U.S. and other continents. The company owns, develops, operates, and offers services in multi-tenant communications real estate properties. Other than the U.S., it operates in Asia-Pacific, Europe, Africa, and Latin America. The wireless services of AMT are spread over 19 countries and five continents with a portfolio of more than 180,000 communication sites. If you are interested in 5G technology investments, AMT is the best option. 

EQUINIX (EQIX)

Next on the list, we have a California-based real estate investment trust - Equinix. It deals in connection and data center services. EQIX is a renowned digital infrastructure company that offers data centers and services accessible in various geographical areas like America, Europe, Middle East, Africa, and Asia-Pacific. EQIX’s services include secure key management, customer support, consulting, marketplace, and network virtualization. It has approximately 210 data centers spread across 25 countries on five continents. Along with this, it provides unparalleled services to more than 52 markets, making it reach a vast area.

PROLOGIS (PLD)

Operating through Real Estate Operations and Strategic Capital segments, Prologis is a critical real estate investment in the industrial sector. It has ownership in logistic properties in high-barrier that helps business-to-business commerce and supports online fulfillment. The primary source of revenue of PLD is rental capital, recoveries, and expenses recognized from its consolidated properties. It also plays a role in co-investment ventures that generates management fees and promotes income. By the end of 2020, the company has ownership of over 4,655 logistics buildings, among which 963 million square feet of land was on the lease. Regardless of its size, it is growing at an above-average rate, making it a good investment option compared to other REITs.