Mid-Year Update on the Big Five REITs Everyone Should Own

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It’s time for a mid-year check-in on the blue-chip Big Five in the REITs.

I am talking about the kind of real estate investment trusts that own irreplaceable properties, carry investment-grade balance sheets, and continue to throw off dividends that make up a core part of any income-focused portfolio. The group includes Digital Realty, Boston Properties, Prologis, Equity Residential, and Simon Property Group. These five firms cover a broad swath of the commercial real estate market. Together, they offer exposure to data centers, office towers, logistics warehouses, multifamily housing, and Class A retail properties. It is a portfolio that combines growth, cash flow, and long-term staying power. While valuations have diverged, fundamentals across the group are generally stable, and balance sheets remain in good shape.

Digital Realty

Digital Realty $DLR ( ▲ 2.0% ) has proven to be one of the most resilient operators in the REIT space. The company owns over 300 data centers spread across key global markets, and its platform is increasingly driven by demand for artificial intelligence infrastructure and secure interconnection services. Digital Realty continues to report strong leasing activity, with more than $150 million of annualized rent signed in the second quarter. Its development pipeline remains active, and utilization is solid. The balance sheet is in reasonable shape, with debt to EBITDA near six times and fixed charge coverage above three and a half times. The company has been using joint ventures and selective asset sales to help fund growth. The common dividend currently yields approximately 3.5% and is supported by a payout ratio of about 70% of projected 2025 funds from operations. Shares are trading at roughly 18.5 times expected FFO and near a small discount to net asset value, which most analysts estimate in the range of $125 to $135 per share.

Boston Properties

Boston Properties $BXP ( ▲ 4.44% ) continues to be the bellwether of the office REIT space. It owns a high-quality portfolio of Class A office buildings in gateway cities including Boston, New York, and San Francisco. While the secular headwinds facing office real estate are well known, Boston Properties has done a better job than most in holding the line on occupancy and leasing spreads. At mid-year, portfolio occupancy stood just under 89 percent, and tenant retention trends are improving. The company has leaned into leasing, deferred non-essential spending, and focused on maximizing its redevelopment pipeline. It carries investment-grade credit ratings and maintains liquidity of more than 2.5 billion dollars. The balance sheet is sound, with net debt to EBITDA around 6.4 times and a weighted average debt maturity exceeding six years. The dividend yields approximately 6.1% and represents just 55% of projected 2025 FFO, which is expected to come in around 7.45 dollars per share. Shares are deeply discounted, trading at about 8.5 times FFO and nearly 30% below net asset value, which is pegged in the neighborhood of $80 per share. There is significant upside potential if market sentiment toward the office sector improves.

Prologis

Prologis $PLD ( ▲ 3.59% ) continues to operate in a league of its own. It is the largest logistics REIT in the world, with a global portfolio exceeding 1.2 billion square feet. It owns warehouses and last-mile logistics facilities in supply-constrained, high-demand regions. The company benefits from ongoing trends in e-commerce, reshoring, and inventory decentralization. Occupancy remains above 96%, and lease spreads have exceeded 50% in some markets. Development activity remains elevated, and returns on capital continue to be compelling. The balance sheet is pristine, with net debt to EBITDA below 4.5 times and over $10 billion in available liquidity. Credit ratings are strong, and maturities are well laddered. The dividend yields about 2.9% and is covered by a payout ratio just under 70% of projected FFO, which should approach $5.70 per share this year. Shares are not cheap, trading at around 23 times FFO and a slight premium to NAV, which is in the range of $125 to $130 per share. However, the premium reflects scale, operating efficiency, and a long runway for growth.

Equity Residential

Equity Residential $EQR ( ▲ 1.54% ) remains one of the most consistent apartment REITs. The company owns a portfolio of high-end multifamily properties concentrated in coastal urban markets, including New York, Boston, San Francisco, and Washington D.C. Rent growth has reaccelerated in 2025, and occupancy is close to 97%. New lease rates and renewals have continued to trend higher, and the supply outlook in its core markets is fairly benign. Equity Residential has focused on shedding non-core assets and allocating capital toward higher-yielding suburban developments and asset upgrades. The balance sheet is healthy, with net debt to EBITDA below 4.5 times and interest coverage over five times. Most of the debt is fixed rate, and the firm carries a BBB plus credit rating. The dividend yields about 4.1%, and the payout ratio is approximately 70% of expected FFO of $3.80 per share. Shares are trading at 18 times FFO and at a discount to net asset value, which is estimated at $75 per share. The discount reflects skepticism toward urban housing but leaves room for recovery as markets normalize.

Simon Property Group

Simon Property Group $SPG ( ▲ 1.81% ) continues to remind everyone why it is still the heavyweight of the retail REIT sector. The company owns more than 200 high-end malls, premium outlets, and lifestyle centers in the United States and abroad. Leasing momentum is strong, with occupancy approaching 95% and tenant sales at record levels. The company has been active in redevelopment, selective acquisitions, and expanding its stake in retailers and brand partners. The balance sheet remains fortress-like, with net debt to EBITDA near five times and no major maturities until late 2026. Liquidity exceeds $8 billion, and the company has continued its share repurchase program while maintaining the dividend. The yield is currently about 6.2%, and the payout ratio is just above 55% of projected FFO of $12.60 per share. Shares trade at 9.5 times FFO and at a steep discount to NAV, which analysts estimate at approximately $160 per share. The valuation implies a bearish view on the future of malls, but the fundamentals argue otherwise.

These five REITs make up a portfolio that reflects a balanced approach to commercial real estate investing. There is secular growth in data centers and logistics. There is value and contrarian opportunity in office and mall space. And there is income and resilience in multifamily housing. Across the board, balance sheets are solid, dividends are covered, and public market valuations continue to lag private market values. For patient investors who are willing to accept volatility, there is opportunity here. This is the kind of real estate portfolio I want to own for the long haul.