It's no secret that many dividend stocks have been beaten down over the past year or so. Even in cases where the underlying business is solid and performing well, rising interest rates tend to put pressure on income-focused investments. This is especially true in the real estate sector, as financing properties becomes more expensive and the rising-rate environment hurts commercial property valuations.

Having said that, two beaten-down income stocks that look especially attractive right now are real estate investment trusts, or REITs: EPR Properties (EPR 0.23%) and Empire State Realty Trust (ESRT 0.47%). Here's a look at how these businesses are doing and why they could be worth a closer look for long-term value investors.

Don't let short-term uncertainty scare you.

Let's start with the bad. EPR Properties is an experiential REIT, and while much of its tenant base is doing exceptionally well, one of its largest tenants -- Cineworld's (CNWGY) Regal Entertainment Group -- is in the middle of bankruptcy proceedings. As a result, EPR's stock plunged in late 2022 when the bankruptcy was announced and is still trading at a depressed valuation of less than 10 times funds from operations (FFO), the real estate equivalent of earnings.

This creates a major element of uncertainty. In fact, EPR has decided not to issue earnings guidance until Regal emerges from bankruptcy, which will hopefully happen within the next few months. But in the meantime, it's important to note that Regal hasn't rejected the leases on any of its 57 EPR-owned theaters and has paid rent on all of them through April.

Beyond Regal, EPR's business is looking very strong. Revenue and FFO increased by 9% and 12%, respectively, in the first quarter year over year as its business continues to normalize from the pandemic. The balance sheet is solid, and the company expects to be able to invest nearly $250 million in development and redevelopment projects over the next couple of years without having to raise any capital.

And for investors willing to buy shares before the Regal issues are resolved, EPR pays a well-covered 7.9% dividend yield while you wait.

Iconic assets in a troubled market

Without question, there is serious uncertainty in the office real estate market. With the effects of remote work just starting to be reflected in office leasing trends and depressed property valuations raising questions about the ability of office owners to refinance their properties, many office REITs are beaten down. And Empire State Realty Trust is no exception.

The owner of the iconic Empire State Building and a portfolio of other office and multifamily real estate in the New York City area, Empire State is facing some of the same issues, but is dramatically outperforming some of its peers. For example, its Manhattan office portfolio's occupancy actually increased by 180 basis points sequentially in the first quarter, while other New York office REITs trended in the opposite direction.

Furthermore, the Empire State Building Observatory generated net operating income that was 10% above comparable pre-pandemic levels. The company's multifamily portfolio has over 97% occupancy. And at just over eight times FFO, management apparently agrees the stock is attractive, as the company continues to buy back stock (somewhat rare for REITs). With $273 million in cash on its balance sheet and over $1.1 billion in total liquidity, Empire State has the advantage of flexibility to take advantage of weakness in the office industry as opportunities arise.

Invest with the long term in mind

Both of these companies are facing significant short-term uncertainty, so it's important to plan for a bit of a roller coaster ride, especially until the Regal bankruptcy and remote-work effects are more apparent. However, both of these are solid, well-run companies and are trading for rock-bottom valuations. Investors who add these to their portfolios now could be very happy with the move years down the road.