5 Undervalued REITs Offering High Yields in 2026

[Olori Uwem]

5 Undervalued REITs Offering High Yields in 2026

Real estate investment trusts (REITs) are back in focus as income investors hunt for attractive yields amid shifting interest-rate expectations.

According to Morningstar, five REIT stocks currently trade at significant discounts to their estimated fair value, offering both upside potential and strong dividend income.

Over the past year:
• Morningstar US Real Estate Index: +8.31%
• Morningstar US Market Index: +16.44%

While real estate has lagged the broader market, recent gains suggest renewed momentum — especially if interest rates trend lower.

Here’s a breakdown of the five most undervalued REITs as of Feb. 24, 2026.

1. Americold Realty Trust Inc (COLD)
• Price/Fair Value: 0.50 (50% undervalued)
• Forward Dividend Yield: 7.03%
• Industry: Industrial REIT (Cold Storage)

What It Does
• Operates temperature-controlled warehouses
• Serves food, pharma, floral, and chemical industries
• Second-largest cold storage operator globally

Investment Case
• Portfolio concentrated in North America
• Long-term consolidation story intact
• Mid-single-digit NOI growth expected over the next decade

Risks
• Weaker food demand
• Excess warehouse capacity
• Labor challenges in cold storage facilities

2. Park Hotels & Resorts Inc (PK)
• Price/Fair Value: 0.54
• Forward Dividend Yield: 8.87%
• Industry: Hotel REIT

Portfolio Highlights
• 36 luxury & upper-upscale hotels
• 22,395 rooms across the U.S.
• Brands include Marriott, Hyatt, IHG

Growth Drivers
• Renovations boosting revenue per available room (RevPAR)
• Recovery in leisure travel
• Focus on high-quality domestic assets

Challenges
• International tourism slowdown
• Elevated hotel supply
• Airbnb competition limiting pricing power

3. Kilroy Realty Corp (KRC)
• Price/Fair Value: 0.56
• Forward Dividend Yield: 6.96%
• Industry: Office & Life Science REIT

Geographic Focus
• Los Angeles
• San Francisco Bay Area
• Seattle
• San Diego
• Austin

Strengths
• High-quality, modern portfolio (avg. age ~12 years)
• Strong life sciences exposure
• ESG-focused strategy

Headwinds
• High office vacancy (especially West Coast)
• Remote/hybrid work trends
• Weak rental growth

AI-related growth in tech hubs could provide long-term tailwinds.

4. Invitation Homes Inc (INVH)
• Price/Fair Value: 0.63
• Forward Dividend Yield: 4.67%
• Industry: Residential REIT

Portfolio
• 85,000+ single-family rental homes
• 17 U.S. markets
• Heavy exposure to Florida & Western U.S.

Investment Thesis
• Renting cheaper than owning in most markets
• Millennial demand for suburban rentals
• Economies of scale in maintenance & operations

Long-Term Risk
• Aging baby boomers could increase housing supply
• Long-term growth may track inflation only

5. Healthpeak Properties Inc (DOC)
• Price/Fair Value: 0.66
• Forward Dividend Yield: 7.07%
• Industry: Healthcare Facilities REIT

Portfolio Mix
• 52% Medical Office
• 36% Life Science
• 12% Retirement & Triple-Net Assets

Strategic Moves
• Sold senior housing assets during pandemic
• Completed $5bn merger with Physicians Realty Trust
• Focus on high-quality medical office & life science properties

Long-Term Tailwinds
• Aging population
• Increased healthcare spending
• Demand for cost-efficient care settings

Why REITs Matter Now

REITs are:

High-yield income plays
Historically sensitive to interest-rate cuts
Attractive when trading below fair value

However, risks remain:
• Interest-rate volatility
• Sector-specific structural changes (remote work, Airbnb, healthcare reforms)
• Economic slowdown impact on property demand

Bottom Line

These five REITs offer:
• Discounts of 34%–50% to fair value
• Dividend yields between 4.67% and 8.87%
• Exposure to industrial, hotel, office, residential, and healthcare real estate

For income-focused investors willing to tolerate sector volatility, these undervalued REITs could provide both yield and recovery upside in 2026.

 

[igwe emmanuel]

Wow, these REITs are really catching my eye … solid yields and still trading below their fair value! Definitely something to consider if you want steady income while waiting for growth. Which one would you pick first?
For me, have been eyeing updcreit

 

[Ugobeauty]

We hope they move forward this year especially Updcreit

 

[igwe emmanuel]

We hope they move forward this year especially Updcreit

Hopefully we start seeing some real movement this year, UPDC REIT has been quiet for too long.

 

[Little Princess]

It’s funny we’re talking about UPDC REIT today! I was just checking the NGX daily summary for March 11, 2026, and noticed it closed at ₦7.50, up about 0.67%. It’s definitely been a 'silent mover' compared to the high-flying banking stocks, but with a trailing dividend yield of nearly 7%, it’s still a solid play for anyone building a 'passive income' pillar. @igwe emmanuel, while we wait for that 'real movement,' are you taking advantage of the current ₦7.40–₦7.50 range to top up, or are you waiting for it to clear the ₦8.00 psychological resistance first?

 

[igwe emmanuel]

It’s funny we’re talking about UPDC REIT today! I was just checking the NGX daily summary for March 11, 2026, and noticed it closed at ₦7.50, up about 0.67%. It’s definitely been a 'silent mover' compared to the high-flying banking stocks, but with a trailing dividend yield of nearly 7%, it’s still a solid play for anyone building a 'passive income' pillar. @igwe emmanuel, while we wait for that 'real movement,' are you taking advantage of the current ₦7.40–₦7.50 range to top up, or are you waiting for it to clear the ₦8.00 psychological resistance first?

Honestly, I have to wait for their financial report before making my next move.

 

[Little Princess]

Honestly, I have to wait for their financial report before making my next move.

We look forward

 

[Adegoroye]

We look forward

Between updc and updc reits what is the major difference and it is make sense to keep the two ..Someone said they are sister companies..What are other reits one can buy too

Hopefully we start seeing some real movement this year, UPDC REIT has been quiet for too long.

We look forward

Between updc and updc reits what is the major difference and it is make sense to keep the two

 

[Little Princess]

Between updc and updc reits what is the major difference and it is make sense to keep the two ..Someone said they are sister companies..What are other reits one can buy too


Between updc and updc reits what is the major difference and it is make sense to keep the two

That is an excellent question, @Adegoroye! They are indeed sister companies, but they play very different roles in your portfolio. Think of UPDC Plc as the 'Builder'—they take the risk of construction and property development. UPDC REIT (UPDCREIT), on the other hand, is the 'Landlord'—it's a fund that owns completed, rent-yielding properties (like Victoria Mall Plaza and Abebe Court).
In 2026, the major difference is their mandate: UPDCREIT must distribute 90% of its net income as dividends to unitholders by law. If you want steady cash flow, go for the REIT. If you want to bet on the growth of the Lagos construction sector, go for UPDC Plc. Personally, I like holding the REIT for that 7-8% yield 'buffer' while the market is volatile!

 

[Adegoroye]

That is an excellent question, @Adegoroye! They are indeed sister companies, but they play very different roles in your portfolio. Think of UPDC Plc as the 'Builder'—they take the risk of construction and property development. UPDC REIT (UPDCREIT), on the other hand, is the 'Landlord'—it's a fund that owns completed, rent-yielding properties (like Victoria Mall Plaza and Abebe Court).
In 2026, the major difference is their mandate: UPDCREIT must distribute 90% of its net income as dividends to unitholders by law. If you want steady cash flow, go for the REIT. If you want to bet on the growth of the Lagos construction sector, go for UPDC Plc. Personally, I like holding the REIT for that 7-8% yield 'buffer' while the market is volatile!

Thank you so much ..

 

[igwe emmanuel]

Hopefully to see an improvement

We look forward

 

[Mr.Simon]

5 Undervalued REITs Offering High Yields in 2026

Real estate investment trusts (REITs) are back in focus as income investors hunt for attractive yields amid shifting interest-rate expectations.

According to Morningstar, five REIT stocks currently trade at significant discounts to their estimated fair value, offering both upside potential and strong dividend income.

Over the past year:
• Morningstar US Real Estate Index: +8.31%
• Morningstar US Market Index: +16.44%

While real estate has lagged the broader market, recent gains suggest renewed momentum — especially if interest rates trend lower.

Here’s a breakdown of the five most undervalued REITs as of Feb. 24, 2026.

1. Americold Realty Trust Inc (COLD)
• Price/Fair Value: 0.50 (50% undervalued)
• Forward Dividend Yield: 7.03%
• Industry: Industrial REIT (Cold Storage)

What It Does
• Operates temperature-controlled warehouses
• Serves food, pharma, floral, and chemical industries
• Second-largest cold storage operator globally

Investment Case
• Portfolio concentrated in North America
• Long-term consolidation story intact
• Mid-single-digit NOI growth expected over the next decade

Risks
• Weaker food demand
• Excess warehouse capacity
• Labor challenges in cold storage facilities

2. Park Hotels & Resorts Inc (PK)
• Price/Fair Value: 0.54
• Forward Dividend Yield: 8.87%
• Industry: Hotel REIT

Portfolio Highlights
• 36 luxury & upper-upscale hotels
• 22,395 rooms across the U.S.
• Brands include Marriott, Hyatt, IHG

Growth Drivers
• Renovations boosting revenue per available room (RevPAR)
• Recovery in leisure travel
• Focus on high-quality domestic assets

Challenges
• International tourism slowdown
• Elevated hotel supply
• Airbnb competition limiting pricing power

3. Kilroy Realty Corp (KRC)
• Price/Fair Value: 0.56
• Forward Dividend Yield: 6.96%
• Industry: Office & Life Science REIT

Geographic Focus
• Los Angeles
• San Francisco Bay Area
• Seattle
• San Diego
• Austin

Strengths
• High-quality, modern portfolio (avg. age ~12 years)
• Strong life sciences exposure
• ESG-focused strategy

Headwinds
• High office vacancy (especially West Coast)
• Remote/hybrid work trends
• Weak rental growth

AI-related growth in tech hubs could provide long-term tailwinds.

4. Invitation Homes Inc (INVH)
• Price/Fair Value: 0.63
• Forward Dividend Yield: 4.67%
• Industry: Residential REIT

Portfolio
• 85,000+ single-family rental homes
• 17 U.S. markets
• Heavy exposure to Florida & Western U.S.

Investment Thesis
• Renting cheaper than owning in most markets
• Millennial demand for suburban rentals
• Economies of scale in maintenance & operations

Long-Term Risk
• Aging baby boomers could increase housing supply
• Long-term growth may track inflation only

5. Healthpeak Properties Inc (DOC)
• Price/Fair Value: 0.66
• Forward Dividend Yield: 7.07%
• Industry: Healthcare Facilities REIT

Portfolio Mix
• 52% Medical Office
• 36% Life Science
• 12% Retirement & Triple-Net Assets

Strategic Moves
• Sold senior housing assets during pandemic
• Completed $5bn merger with Physicians Realty Trust
• Focus on high-quality medical office & life science properties

Long-Term Tailwinds
• Aging population
• Increased healthcare spending
• Demand for cost-efficient care settings

Why REITs Matter Now

REITs are:

High-yield income plays
Historically sensitive to interest-rate cuts
Attractive when trading below fair value

However, risks remain:
• Interest-rate volatility
• Sector-specific structural changes (remote work, Airbnb, healthcare reforms)
• Economic slowdown impact on property demand

Bottom Line

These five REITs offer:
• Discounts of 34%–50% to fair value
• Dividend yields between 4.67% and 8.87%
• Exposure to industrial, hotel, office, residential, and healthcare real estate

For income-focused investors willing to tolerate sector volatility, these undervalued REITs could provide both yield and recovery upside in 2026.

Interesting list. REITs can be good for steady income, especially with those high dividend yields. But like always, investors still need to watch interest rates and sector risks before jumping in.

 

[Benjamin E Housel]

Have you checked out ABR - Arbor Realty Trust?

 

[Adegoroye]

Interesting list. REITs can be good for steady income, especially with those high dividend yields. But like always, investors still need to watch interest rates and sector risks before jumping in.

Which ones that is trading below their value on Nigeria stock exchange

 

[Benjamin E Housel]

Wow, these REITs are really catching my eye … solid yields and still trading below their fair value! Definitely something to consider if you want steady income while waiting for growth. Which one would you pick first?
For me, have been eyeing updcreit

Expect limited capital appreciation from most US REITs. They are more of income investments.

 

[Adegoroye]

Sir ,let us look at Nigeria stock exchange,which ones should one go for

 

[Little Princess]

Sir ,let us look at Nigeria stock exchange,which ones should one go for

Great question, @Adegoroye! While the original list focused on the US, the NGX has some very specific 'undervalued' plays if you know where to look. Besides UPDC REIT (UPDCREIT), which we've been discussing, you should look at:

SFS Real Estate REIT (SFSREIT): Currently trading around ₦145.00. It has a very disciplined management and focuses on high-yield commercial property.

Union Homes REIT (UHREIT): Currently around ₦36.60.
The 'value' here is in the Net Asset Value (NAV). For instance, UPDCREIT often trades at a discount to the actual value of its buildings (like Victoria Mall Plaza). In 2026, with inflation at 15.1%, these properties are worth much more than the stock price suggests. That’s your 'undervalued' entry point!

 

[Adegoroye]

Great question, @Adegoroye! While the original list focused on the US, the NGX has some very specific 'undervalued' plays if you know where to look. Besides UPDC REIT (UPDCREIT), which we've been discussing, you should look at:

SFS Real Estate REIT (SFSREIT): Currently trading around ₦145.00. It has a very disciplined management and focuses on high-yield commercial property.

Union Homes REIT (UHREIT): Currently around ₦36.60.
The 'value' here is in the Net Asset Value (NAV). For instance, UPDCREIT often trades at a discount to the actual value of its buildings (like Victoria Mall Plaza). In 2026, with inflation at 15.1%, these properties are worth much more than the stock price suggests. That’s your 'undervalued' entry point!

Thank you very much sir

 

[Ugobeauty]

Great question, @Adegoroye! While the original list focused on the US, the NGX has some very specific 'undervalued' plays if you know where to look. Besides UPDC REIT (UPDCREIT), which we've been discussing, you should look at:

SFS Real Estate REIT (SFSREIT): Currently trading around ₦145.00. It has a very disciplined management and focuses on high-yield commercial property.

Union Homes REIT (UHREIT): Currently around ₦36.60.
The 'value' here is in the Net Asset Value (NAV). For instance, UPDCREIT often trades at a discount to the actual value of its buildings (like Victoria Mall Plaza). In 2026, with inflation at 15.1%, these properties are worth much more than the stock price suggests. That’s your 'undervalued' entry point!

Thank you

 

[Vicole]

5 Undervalued REITs Offering High Yields in 2026

Real estate investment trusts (REITs) are back in focus as income investors hunt for attractive yields amid shifting interest-rate expectations.

According to Morningstar, five REIT stocks currently trade at significant discounts to their estimated fair value, offering both upside potential and strong dividend income.

Over the past year:
• Morningstar US Real Estate Index: +8.31%
• Morningstar US Market Index: +16.44%

While real estate has lagged the broader market, recent gains suggest renewed momentum — especially if interest rates trend lower.

Here’s a breakdown of the five most undervalued REITs as of Feb. 24, 2026.

1. Americold Realty Trust Inc (COLD)
• Price/Fair Value: 0.50 (50% undervalued)
• Forward Dividend Yield: 7.03%
• Industry: Industrial REIT (Cold Storage)

What It Does
• Operates temperature-controlled warehouses
• Serves food, pharma, floral, and chemical industries
• Second-largest cold storage operator globally

Investment Case
• Portfolio concentrated in North America
• Long-term consolidation story intact
• Mid-single-digit NOI growth expected over the next decade

Risks
• Weaker food demand
• Excess warehouse capacity
• Labor challenges in cold storage facilities

2. Park Hotels & Resorts Inc (PK)
• Price/Fair Value: 0.54
• Forward Dividend Yield: 8.87%
• Industry: Hotel REIT

Portfolio Highlights
• 36 luxury & upper-upscale hotels
• 22,395 rooms across the U.S.
• Brands include Marriott, Hyatt, IHG

Growth Drivers
• Renovations boosting revenue per available room (RevPAR)
• Recovery in leisure travel
• Focus on high-quality domestic assets

Challenges
• International tourism slowdown
• Elevated hotel supply
• Airbnb competition limiting pricing power

3. Kilroy Realty Corp (KRC)
• Price/Fair Value: 0.56
• Forward Dividend Yield: 6.96%
• Industry: Office & Life Science REIT

Geographic Focus
• Los Angeles
• San Francisco Bay Area
• Seattle
• San Diego
• Austin

Strengths
• High-quality, modern portfolio (avg. age ~12 years)
• Strong life sciences exposure
• ESG-focused strategy

Headwinds
• High office vacancy (especially West Coast)
• Remote/hybrid work trends
• Weak rental growth

AI-related growth in tech hubs could provide long-term tailwinds.

4. Invitation Homes Inc (INVH)
• Price/Fair Value: 0.63
• Forward Dividend Yield: 4.67%
• Industry: Residential REIT

Portfolio
• 85,000+ single-family rental homes
• 17 U.S. markets
• Heavy exposure to Florida & Western U.S.

Investment Thesis
• Renting cheaper than owning in most markets
• Millennial demand for suburban rentals
• Economies of scale in maintenance & operations

Long-Term Risk
• Aging baby boomers could increase housing supply
• Long-term growth may track inflation only

5. Healthpeak Properties Inc (DOC)
• Price/Fair Value: 0.66
• Forward Dividend Yield: 7.07%
• Industry: Healthcare Facilities REIT

Portfolio Mix
• 52% Medical Office
• 36% Life Science
• 12% Retirement & Triple-Net Assets

Strategic Moves
• Sold senior housing assets during pandemic
• Completed $5bn merger with Physicians Realty Trust
• Focus on high-quality medical office & life science properties

Long-Term Tailwinds
• Aging population
• Increased healthcare spending
• Demand for cost-efficient care settings

Why REITs Matter Now

REITs are:

High-yield income plays
Historically sensitive to interest-rate cuts
Attractive when trading below fair value

However, risks remain:
• Interest-rate volatility
• Sector-specific structural changes (remote work, Airbnb, healthcare reforms)
• Economic slowdown impact on property demand

Bottom Line

These five REITs offer:
• Discounts of 34%–50% to fair value
• Dividend yields between 4.67% and 8.87%
• Exposure to industrial, hotel, office, residential, and healthcare real estate

For income-focused investors willing to tolerate sector volatility, these undervalued REITs could provide both yield and recovery upside in 2026.

My top 5 REITs 2026:
Americold, Park Hotels, Kilroy, Invitation Homes, Healthpeak.
High dividends
Trading below fair value
It's perfect for income-focused investors.