For investors looking for income, Real Estate Investment Trusts are often an excellent source of potential investments. REITs widely have high dividend yields, often above 5%.
In addition, REITs will benefit from the upcoming expected interest rate cuts by the Federal Reserve. Falling interest rates will help lower the cost of capital for REITs, which rely heavily on external financing to fund property acquisitions.
This article will discuss 3 top high yield REITs for income investors with current yields above 5%.
1. Kilroy Realty Corporation (KRC)
Kilroy Realty Corp (NYSE:) is a self-administered real estate investment trust (REIT). The company operates in office and mixed-use submarkets along the West Coast. The company owns, develops, acquires, and manages real estate assets, consisting primarily of properties in the coastal regions of Greater Los Angeles, San Diego County, the San Francisco Bay Area, and Greater Seattle.
KRC’s stabilized portfolio totaled approximately 14.2 million square feet of primarily office and life science space. The company also had more than 1,000 residential units in Hollywood and San Diego. KRC has been developing, acquiring, and managing office space, life science, and mixed-use projects for the past seven decades. Kilroy Realty Corporation trades on the New York Stock Exchange under the ticker symbol KRC.
On April 30th, 2025, Kilroy Realty Corporation reported its first-quarter results for Fiscal Year (FY)2025. The company reported Q1 2025 revenues of $270.8 million, down from $278.6 million in Q1 2024. Funds from Operations (FFO) decreased to $122.3 million, or $1.02 per diluted share, from $133.7 million, or $1.11 per diluted share. The stabilized portfolio was 81.4% occupied and 83.9% leased, with 248,000 square feet of leases signed, including 98,000 square feet of new leases on vacant space.
Kilroy reaffirmed its 2025 FFO guidance of $3.85–$4.05 per diluted share. Leasing activity reflected West Coast office recovery, with a strong forward pipeline. The company progressed Kilroy Oyster Point Phase 2 to the tenant improvement phase and, post-quarter, agreed to sell five acres of its Santa Fe Summit site in San Diego for $38 million, expected to close in 2026. Development spending is projected at $100–$200 million for 2025.
The company sports a solid and healthy balance sheet with interest coverage of a 2.6 ratio and a debt/equity ratio of 0.9. Both ratios are of quality. KRC’s long-term debt to cap ratio is also good at only 40.1%. Also, the dividend payout ratio, well below a typical REIT ratio, of only 54% based on FY2025 FFO, is safe and well covered.
KRC currently yields 6.2%.
2. Healthpeak Properties (DOC)
Healthpeak Properties Inc (NYSE:) is the largest healthcare REIT in the U.S., with 774 properties. It was the first healthcare REIT that was included in the . The 37-year old REIT invests in life science facilities, senior houses, and medical offices, with 97% of its portfolio based on private-pay sources.
Healthpeak Properties benefits from favorable secular trends. As the baby boomer generation ages and the average life expectancy is on the rise, the senior population of the U.S. is expected to grow significantly in the upcoming years. The 80+ age group is expected to grow by about 5% per year on average until 2030. Thanks to these trends, healthcare spending in the U.S. is expected to grow by about 5% per year on average until 2030.
In late April, Healthpeak Properties reported (4/24/25) results for the first quarter of fiscal 2025. Same-property net operating income grew 7% over the prior year’s quarter thanks to strong growth in the segment of continuing care retirement community and FFO per share rose 2%, from $0.45 to $0.46. Management expects annual FFO per share of $1.81-$1.87.
Healthpeak Properties was in turnaround mode before the pandemic. The REIT has begun to recover from the pandemic and could offer strong returns, thanks largely to its 6.7% dividend.
3. Dynex Capital (DX)
Dynex Capital Inc (NYSE:) was founded in 1987 and is headquartered in Glen Allen, Virginia. As an mREIT, Dynex Capital invests in mortgage-backed securities (MBS) on a leveraged basis in the United States. It invests in agency and non-agency MBS consisting of residential MBS, commercial MBS (CMBS), and CMBS interest-only securities.
On April 21, 2025, Dynex Capital, Inc. reported its financial results for the first quarter ended March 31, 2025. The company achieved a total economic return of $0.33 per common share, representing 2.6% of the beginning book value, comprised of dividends declared of $0.47 per common share offset by a decline in book value of $0.14 per share. Book value per common share stood at $12.56 as of March 31, 2025. Dynex reported a comprehensive income of $0.16 per common share and a net loss of $0.06 per common share.
Net interest income increased to $17.1 million, a 147% surge from the previous quarter, driven by new investments at attractive yields and declining financing costs. The company raised $240 million in equity capital through at-the-market common stock issuances, enhancing liquidity to $790 million and reducing leverage to 7.4 times shareholders’ equity.
During the quarter, Dynex invested $895 million in Agency Residential Mortgage-Backed Securities (RMBS), $55 million in Agency Commercial Mortgage-Backed Securities (CMBS), and increased To-Be-Announced (TBA) investments by $430 million. The company’s portfolio had a fair value of $11.1 billion, with 98% allocated to agency RMBS.
Dynex brings to the table some competitive advantages, which could enable it to generate strong returns for investors throughout business cycles. These include the trust’s experienced management team with expertise in managing securitized real estate assets through multiple economic cycles, as well as its emphasis on maintaining a diversified pool of highly liquid mortgage investments with minimal credit risk.
DX currently yields 16.2%.
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Disclosure: No positions in any stocks mentioned