🚨 Up 230% 📈 in These Stock Investments (Best REITs 2025)

Invest Insight
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This one investment had a total return of 232% over the past year and a half.
And this investment had a total of 230% over the past five years.
And this investment had a year-to-date return of 44%.
So we are going to share and analyze these three investments with you in this video.
Stay tuned.
Hey guys, it's Amman.
And Christina.
From Our Rich Journey.
In this video, we are going to talk to you about some of the top performing stocks
on the stock market in an area of the stock market that most people overlook, real estate.
But I'm not talking about buying properties, being a landlord, fixing toilets.
I'm talking about real estate investment trusts, REITs.
So REITs are companies that own and operate income-producing properties.
And by law, they have to pay out 90% of their taxable income in dividends.
So that's why they can be a great addition to a portfolio.
Steady income, diversification, and exposure to real estate without hassle.
And so today we are breaking down three of the top performing REITs of 2025 thus far.
AHR, PGRE, and WELL.
We'll look at what they invest in, their dividend yields, performance, their market cap,
and our thoughts on each investment and so much more so that you can see the full investment picture.
So let's start with AHR, American Healthcare REIT.
As the name suggests, AHR invests mainly in healthcare real estate.
Things like senior housing, medical office buildings, and hospitals.
These tend to be more stable because people need healthcare in every market cycle.
Right now, shares trade at $42.67.
AHR pays a dividend yield of about 2.34%.
Its market cap is $7.1 billion, which makes this a mid-cap company.
This matters because it's large enough to be established,
and it's also less risky than those smaller REITs.
But because it's mid-cap, it also has room to grow compared to massive players like Prologis.
Over the past year and a half, AHR has been on fire, posting a total return of 232%.
That includes an 86% gain in the last year alone and 52% just year-to-date.
This balance of stable properties, decent yield, and reasonable debt
is one reason investors have been piling into AHR this year.
But keep in mind there are also risks.
A lot of the properties depend on money from the government like Medicaid and Medicare,
and if the government makes massive cuts to these areas, it could hurt their cash flow.
Now secondly, AHR has been growing quickly because it's been buying up new healthcare properties.
Now that's great when everything is running smoothly,
but if they overpay or have trouble managing these properties, returns could slip.
And finally, because AHR has been doing so well recently,
a lot of investors are worried that it's priced too high.
Like we said, AHR is up 232% in the past one and a half years,
and that pace is really not sustainable.
So if growth slows, that stock can fall hard.
Now let's talk about PGRE, Paramount Group.
PGRE focuses on office real estate, mostly high-end office towers
in cities like New York, San Francisco, and Washington, D.C.
These are prime locations, but office space has been a tricky sector since the pandemic.
Right now, shares trade at $7.13, and PGRE has suspended its dividend payouts.
Dividend payouts actually have been suspended since October 2024.
This suspension, the CEO claims,
aligns with our commitment to fortify our balance sheet
and maintain the utmost financial flexibility.
Now keep this in mind when I talk about historical performance,
because overall performance has still been incredibly high.
So real quick, its market cap is $1.57 billion, which makes it much smaller than AHR.
And that matters because smaller REITs can be riskier.
They don't have the same scale or stability.
Now on the flip side, if office demand improves,
smaller players like PGRE may have more room to rebound.
Performance-wise, PGRE has been a roller coaster.
Over the past five years, it's only returned about 17.7% total,
which seriously lags the S&P 500.
But here's the twist.
In the last year, PGRE has soared 44%, and year-to-date, it's up the same.
That performance crushes the S&P 500's 11% year-to-date and 16% one-year gains.
So despite the dividend being suspended, why are investors attracted to PGRE?
Well, for one, the great returns that it's had in the share price.
For two, PGRE invests in Class A office building,
the kind of properties that attract blue-chip tenants.
And with more companies pushing people back to work,
these types of properties become premium spaces.
But here's the thing.
The office market is still shaky.
And with remote work lowering demand,
it makes it harder for PGRE to keep those buildings full.
PGRE also carries about $4 billion in debt,
which is relatively high compared to its $1 billion market cap.
This leverage makes it extra sensitive to interest rates and cash flow swings.
And finally, a lot of people invest in REITs because of its dividend income.
If PGRE doesn't start giving that dividend payout again,
a lot of investors could walk away.
So while the previous REIT we talked about, AHR,
is more of a growth and stability play,
PGRE is more of a contrarian bet.
Investors buying in are hoping that the office slump is behind us.
Now for us, when we invest in anything, we don't like betting.
Now let's look at WELL Tower.
WELL invests in healthcare real estate, including senior housing,
medical office buildings, outpatient medical centers,
and other properties for older adults.
Because people keep aging, demand for these types of places tends to stay steady.
Right now, WELL shares trade around $169 and the dividend yield is 1.75%.
Its market cap is about $113 billion, which makes it a large cap company.
This means it's big, well-known, and less risky than smaller REITs,
but it also tends to grow more slowly.
As for returns, WELL has done really well in recent years.
Over the past five years, the total price return has been 230%,
and year-to-date it's at 36%.
And investors really like WELL because of its scale,
its mix of property types, and how its senior housing and medical exposure
tend to be more stable than pure office properties.
Also, WELL is growing its same store income,
which means income from properties it already owns, not just new ones,
especially in its senior housing and outpatient medical segments.
That signals business is doing well.
Now, I think this REIT is really fascinating
because investing in medical and senior facilities,
I mean, that is a growing population.
And so the returns and the support should be there.
But there are some constraints.
For one, the dividend yield on this REIT is really low.
1.75% by REIT standards is not very high.
And keep this in mind.
In order for that company to pay out that low 1.75% dividend yield,
they are having to cut more into operating costs.
This leaves less room for error if cash flow tightens.
And the last risk, and it's kind of a big one,
is that senior housing and healthcare is tied to regulatory and political forces.
If there is something that passes in the regulatory framework,
it could totally squeeze out already tight margins.
So those are the three top REITs of 2025.
Now, of those three, which one do we think is the best
in terms of long-term growth and success?
The answer is WELL.
Now, compared to AHR's explosive growth and PGRE's risk rebound story,
WELL looks like the steadier option.
It's massive, it's diversified across healthcare properties,
and it has the stability that comes with being a $113 billion company.
The downside is that you don't get the same excitement with WELL.
The dividend payout is only also 1.75%.
And because it's a bigger company,
there's less room for growth compared to the riskier,
smaller, or even mid-cap companies.
But for something consistent,
we think that WELL is the most balanced of all three.
Really, it comes down to these things.
AHR feels like it's already had its big run.
PGRE feels like a gamble.
And WELL looks like the kind of REIT that can continue
delivering quietly over the next many, many years.
It's not flashy, but it's solid.
But remember, this is not a recommendation to buy.
We just wanted to highlight the top three REITs of 2025 thus far.
And we wanted to give you an example of how to analyze REITs
and how to do your research on them.
So that is the key point.
If you're interested in REITs,
make sure you do your research just like any other investment.
And of course, if you like this video,
make sure you give us a thumbs up,
subscribe to our channel,
and join the journey.
