Two Real Estate Investment Trusts Worth Your Attention for Long-Term Growth

The landscape for dividend-focused investors has shifted considerably. For years, high-yield stocks underperformed their growth-oriented peers, largely due to the dominance of mega-cap technology companies that distribute minimal dividends. However, the current interest rate environment—marked by declining rates expected to continue gradually—presents a compelling window for reconsidering real estate investment trusts, a category of trusts that offer both income and potential capital appreciation.

This changing backdrop makes it an opportune moment to examine a pair of real estate investment trusts that merit serious consideration for patient, long-term portfolios.

Why Property Investment Trusts Are Positioned for Success

Real estate investment trusts have faced headwinds over the past two decades, particularly during rising-rate periods and the pandemic-related disruptions. The real estate sector remains inherently sensitive to interest rates, and recovery has been gradual. Yet with rate expectations shifting downward, the fundamentals for property trusts are improving notably.

The two investment trust opportunities highlighted below each represent distinct niches within the real estate space, yet both are positioned to benefit from supportive macro conditions. Both offer dividend income—a critical component for long-term wealth building—combined with the potential for meaningful capital gains as their respective management teams execute growth strategies.

EPR Properties: Unlocking Potential in Experience-Based Real Estate

EPR Properties (NYSE: EPR) operates as a specialized real estate investment trust focused on experiential assets rather than conventional properties. Its portfolio spans theaters, waterparks, ski resorts, and entertainment venues where tenants generate revenue from experiences rather than physical goods.

The company faced headwinds due to uncertainty in the theatrical exhibition sector, but recent box office trends suggest earlier concerns were overstated. More significantly, after five years of deliberate growth restraint necessitated by pandemic recovery and elevated borrowing costs, EPR is finally accelerating its expansion plans. Management has identified a $100 billion addressable market opportunity, signaling substantial runway for portfolio expansion.

Currently offering a 6.4% dividend yield paid monthly, EPR combines current income with the prospect of significant total returns as the company scales operations. For investors seeking both income and growth within an investment trust framework, this dual benefit deserves consideration.

Prologis: Scale, Flexibility, and Strategic Diversification

Prologis (NYSE: PLD) holds the distinction of being the largest industrial real estate investment trust globally, operating 1.3 billion square feet of logistics properties across 20 countries. The core business—managing distribution centers—remains robust as e-commerce continues reshaping supply chains, with $3.2 trillion in annual goods flowing through its facilities.

What sets this investment trust apart is its strategic positioning in data centers, an emerging growth segment. While Prologis is newer to this domain compared to specialized data center operators, its expertise in industrial properties translates directly. The company has already committed billions to data center development.

Prologis benefits from substantial financial advantages: its strong balance sheet enables borrowing at favorable rates relative to competitors, and its liquidity provides flexibility to pursue emerging opportunities. Trading at a reasonable 22 times funds from operations, combined with a 3.1% dividend yield and record lease-signing activity in 2025, the company presents a compelling risk-reward profile within the investment trust category.

Convergence of Income and Growth Potential

Both of these real estate investment trusts share a common advantage: they’ve endured years of unfavorable conditions. As interest rates continue declining and management teams execute their strategic initiatives, these property-focused trusts hold genuine potential for returns exceeding broader market benchmarks.

The intersection of improving rates, strong dividend yields, and management-driven growth creates a particularly attractive risk-reward scenario for those building long-term wealth through dividend-oriented equity positions.

Disclosure: This analysis references companies held within broader investment portfolios and is intended for informational purposes. Individual investors should conduct thorough due diligence and consider their own risk tolerance before making investment decisions.