With geopolitical tensions escalating and inflation heating up, investors are hunting for safe-haven investments that can generate reliable income while protecting capital.
One way to do that is with real estate investment trusts (REITs), which have historically performed well during periods of uncertainty thanks to their steady rental income, attractive dividend yields, and diversified property portfolios.
Even better, even though markets have been on shaky ground, the S&P 500 real estate sector is up 12% this year, and managed to hit a 52-week high just yesterday. That tells us investors are out hunting for safety and strong yield, which we can gain exposure to with REITs such as:
A Reliable REIT in Uncertain Times
Simon Property (NYSE: SPG) yields 4.13% and just hit a new high of $212.82. It also owns or holds interest in 235 retail properties around the world. We should also note SPG just raised its dividend to $2.25 a share, which is payable on June 30 for shareholders of record as of June 9.
Earnings haven’t been too shabby either. In fact, in May, SPG posted first-quarter funds from operations that topped expectations, and raised its full-year FFO guidance to between $13.10 and $13.25 per share from $13 to $13.25. Plus, analysts at Scotiabank just raised its price target on SPG to $206 from $192. Compass Point raised its price target to $230 from $208.
We also have to consider that U.S. malls are staging a comeback. As noted by Coldwell Banker, “A major force behind this shift is Gen Z. While often labeled as digital-first consumers, their behavior tells a more nuanced story. In-store purchases among this group have climbed to 62%, pointing to a clear preference for physical retail when it offers something beyond convenience.”
One Fund, Multiple Real Estate Opportunities
With an expense ratio of 0.08%, the iShares Core US REIT ETF (NYSEARCA: USRT) yields 3%. It offers exposure to 126 holdings, including diversified REITs and other real estate holdings across multiple property sectors. Some of its top holdings include Prologis REIT, Equinix REIT, Simon Property, Digital Realty Trust and Realty Income REIT.
It also just paid a dividend of just over 21 cents per share on March 20. Before that, it paid out just over 69 cents per share on December 19, 2025. Since bottoming out at around $58 in late March, the ETF is now up to $66.14. We’d like to see it closer to $75 a share this year.
A REIT Positioned for the AI Data Center Boom
With a yield of 3.34%, Digital Realty Trust (NYSE: DLR) has more than 300 data centers and has now become one of the biggest REITs in the U.S. with a market cap of $64.53 billion. Helping, future growth is being fueled by the artificial intelligence data center boom. Thanks to artificial intelligence, data center demand is expected to rise at a 15% CAGR until 2030, according to Goldman Sachs.
Plus, consider this. There are about 4,000 operational data centers in the U.S. right now. An additional 1,500 to 3,000 are being planned or under construction. According to Pew Research, the South has 754 planned data centers. The Midwest has 419 planned. The West has 277 planned, and the Northeast has about 106 planned.
Why These REITs Stand Out
Companies like Simon Property Group and Digital Realty Trust, along with diversified options such as the iShares Core U.S. REIT ETF, provide exposure to real assets that can generate steady cash flow through changing market conditions. For investors looking to reduce portfolio risk without sacrificing return potential, REITs may be one of the more attractive places to find both yield and peace of mind in today’s unpredictable environment.
