Navigating the Best REITs to Buy Now: A Deep Dive Into Realty Income and NNN REIT

The retail REIT landscape has undergone a remarkable transformation. After weathering pandemic-driven e-commerce concerns and the interest rate headwinds of 2022-2023, real estate investment trusts focusing on retail properties have demonstrated impressive resilience. For the first nine months of 2025, retail-focused REITs achieved an average return of 6.9%, signaling renewed investor confidence in this traditionally dividend-rich asset class.

Understanding the REIT Advantage

REITs represent a compelling vehicle for income-focused investors, primarily because their tax structure mandates distribution of at least 90% of taxable income to shareholders. By leasing properties and collecting rent, REITs generate steady cash flows that translate into attractive dividend payments. The sector’s recovery has validated that well-managed retail property portfolios can thrive even in uncertain economic environments—a key insight for those seeking the best REITs to buy now.

Among the leading players, Realty Income and NNN REIT stand out as two best reits to buy now, each commanding thousands of properties and distinct strategic positioning within the retail sector.

Realty Income: Scale and Stability

Realty Income operates a sprawling portfolio of over 15,540 properties, with approximately 80% of rental income sourced from retail tenants. Its revenue streams are diversified across grocery stores (nearly 11% of portfolio), convenience stores (10%), and retailers spanning home improvement and dollar stores. The remaining 15% derives from industrial properties, gaming, and other segments.

The company’s operational metrics tell a compelling story. A 98.7% occupancy rate demonstrates tenant stability and market confidence. Lease renewals occurred at a 3.5% higher rental rate, reflecting pricing power in a recovering market. Adjusted funds from operations (AFFO)—a critical metric measuring cash available for distribution—grew 2.9% year-over-year to $1.09 per diluted share.

The dividend history alone justifies consideration: quarterly increases for over three decades since its 1994 IPO. Monthly payouts are typically raised multiple times annually, with the most recent October increase from $0.269 to $0.2695 per share. Projections suggest 2025 AFFO per share will reach $4.25 to $4.27, comfortably covering the annualized $3.23 dividend. The resulting dividend yield stands at 5.7%.

The trade-off? Scale itself becomes a limitation. When managing 15,000-plus properties, acquiring additional investments substantial enough to meaningfully accelerate growth becomes increasingly challenging. Investors should anticipate steady, measured appreciation rather than explosive upside.

NNN REIT: Growth Potential in Focus

NNN REIT operates approximately 3,700 properties leased to retailers across diverse sectors—convenience stores, automotive services, restaurants, and family entertainment centers. This more concentrated approach creates operational agility absent in larger competitors.

NNN has demonstrated adept tenant management, maintaining a 97.5% occupancy rate in Q3. Quarterly AFFO per share climbed from $0.84 to $0.86, reflecting operational momentum. The dividend narrative mirrors Realty Income’s strength: a 36-year streak of consecutive annual increases, most recently a 3.4% bump to $0.60 per share in August. Management’s AFFO guidance of $3.41 to $3.45 per share ensures robust dividend coverage moving forward. The dividend yield reaches 5.9%.

NNN’s comparative advantage lies in its size. Unlike Realty Income, capital deployments can still meaningfully shift the company’s growth trajectory. Strategic property acquisitions carry outsized impact on per-share metrics, positioning NNN REIT among the best REITs to buy now for growth-oriented dividend investors.

The Investment Decision

Both entities have proven their mettle in a challenging environment, investing specifically in recession-resistant retail properties—grocery anchors, essential services, and convenience concepts less vulnerable to economic cycles. Their parallel dividend histories spanning three decades-plus reflect institutional strength and shareholder commitment.

The choice ultimately hinges on investment philosophy. Realty Income appeals to those prioritizing stability and diversity: an established market leader with balanced exposure across property types and geographies. NNN REIT serves investors willing to accept tighter sector concentration in exchange for superior growth prospects and a slightly elevated dividend yield.

For investors seeking meaningful capital appreciation alongside income generation, NNN REIT’s positioned more favorably despite lower diversification. The comparative flexibility in capital allocation and the runway for operational scaling make it the more compelling long-term opportunity in the current market environment.