10 Best REITs to Buy, Down 20% or More

2022 has been a year of tremendous volatility. Concern over inflationary impacts on the economy, a possible recession or housing market crash, and several stock market dips have put loads of real estate investment trust (REITs) on sale, despite the stocks maintaining healthy performances.

Savvy investors know times of market distress are great for buying stocks at a value. But REITs are an extra fantastic buy right now because of the higher dividend yields they can offer. Whether you're looking to boost your passive income earnings from REITs or simply score a deal, here are the 10 best REITs to buy right now -- all down 20% or more from recent highs.

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Federal Realty Investment Trust (NYSE:FRT) is a retail REIT specializing in outdoor shopping centers in second-ring urban markets. Concern over retail spending slowing has put this Dividend King, which has maintained 54 years of dividend increases, on sale.

With 60 years of experience under its belt and an extremely strong balance sheet, the company is in a good position to not only maintain its dividends in light of a recession but also continue to grow.

ALSO READ: 1 Reason Not to Give Up on Retail REITs Even if a Recession Hits

Prologis (NYSE:PLD) is one of the largest REITs in the industry, with a market capitalization of $101 billion. This massive industrial REIT owns over 1 billion square feet of industrial space in 19 countries, making it a global leader in industrial logistics and the dominant player in one of today's hottest, fastest-growing real estate industries. The REIT has a great track record of providing a nearly 19% annualized return over the past 10 years -- and there's still plenty of room to grow.

Independence Realty Trust (NYSE:IRT) is an up-and-coming residential REIT that primarily owns apartments in secondary suburban markets across the country. Multifamily housing has been red hot over the last few years, thanks to high demand and limited supply straining the market.

Share prices shot up in 2021 in anticipation of its acquisition of Steadfast Apartments, which closed in late 2021 and more than doubled its portfolio while giving the REIT notable exposure to the booming Sun Belt region. This year, concern over slowed rental growth and general market volatility has pushed share prices down close to 21%. However, the REIT's performance and long-term growth opportunities remain strong.

ALSO READ: Demand for Apartments Remains Red Hot in the Sun Belt

Pebblebrook Hotel Trust (NYSE:PEB) is a luxury hotel operator that owns roughly 54 urban hotels and resorts across the country. The lodging industry is still recovering from pandemic-related impacts, with luxury hotels recovering more slowly than economy lodging. And that has hurt this REIT's share price.

Its latest earnings showed positive momentum for its summer earnings, with July's rental rates exceeding those from 2019. Occupancy is still down, however. But given the hotel REIT's share price is down 22%, this could be a great value buy as it continues its recovery.

Terreno Realty Corp (NYSE:TRNO) is a hyper-focused industrial operator specializing in last-mile distribution centers and infill warehouses in some of the U.S.'s most popular port cities, like New York, Los Angeles, and Washington, D.C.

In 2021, the excitement surrounding the growth of the industrial sector sent Terreno's share prices to an "exuberant level." So, when the market came tumbling this year, Terreno's price followed despite very little change to its operating performance. Today, Terreno is trading around 23% lower than recent highs.

5 Stocks Under $49

Presented by Motley Fool Stock Advisor

We hear it over and over from investors, "I wish I had bought Amazon or Netflix when they were first recommended by The Motley Fool. I'd be sitting on a gold mine!" It's true, but we think these 5 other stocks are screaming buys. And you can buy them now for less than $49 a share! Click here to learn how you can grab a copy of "5 Growth Stocks Under $49" for FREE for a limited time only.

Nearly everything we do with technology today requires data, in some form, to be stored and aggregated, creating an ever-increasing need for data centers. Digital Realty Trust (NYSE:DLR) is one of the two remaining pure-play data center REITs after private equity firms and larger REITs went on a data center shopping spree in 2021.

The REIT boasts 17 years of consistent dividend increases and has a geographically diverse portfolio of 290 global data center facilities, making it one of the best ways to gain access to this high-growth industry.

Often overlooked by its much larger competitor Sun Communities (NYSE:SUI), UMH Properties (NYSE:UMH) is still a worthwhile residential REIT for income investors. The REIT specializes in leasing and selling mobile homes in 132 communities across the country.

It recently redeemed 9.9 million issued and outstanding shares, putting the company into negative territory on its latest earnings. But the REIT's operational portfolio remains in line with the historical average, showing healthy demand for mobile home housing. UMH Properties' dividend yield is currently just over 4%, making it a great income investment.

Medical Properties Trust (NYSE:MPW) is a healthcare REIT that invests primarily in hospitals and acute care facilities. Hospitals saw a boom in business over the last two years due to increased hospitalization and treatments surrounding COVID-19. But activity is starting to normalize for the company.

Couple slightly reduced earnings with stock market turbulence and rising interest rates, and it doesn't bode well for share prices. The challenges it faces are valid, but there's no reason to lose hope for this top-performing REIT. Its access to favorable equity financing means there's still liquidity to help it grow.

ALSO READ: Why Medical Properties Trust Tumbled Nearly 18% in June

Boston Properties Inc (NYSE:BXP) specializes in owning and leasing high-end, Class A office buildings in six of the largest real estate markets in the country. Its portfolio of over 200 office properties makes it one of the highest-quality office REITs available to invest in.

The office industry was hard hit by the pandemic but is headed toward a recovery, with Class A office space leading the way. Boston's latest earnings showed massive gains and are notably easing investor concern, although the stock remains down nearly 32% from highs. This could be another great value buy for when the market and the REIT reach full recovery.

Plymouth Industrial REIT (NYSE:PLYM) is down nearly 34% from recent highs. This smaller industrial REIT focuses on owning small- to mid-size industrial bays, warehouses, and distribution centers in secondary markets. It hasn't turned a net profit as of yet, but each quarter, the company is making positive gains toward profitability.

It has a large exposure to two important areas for the industrial industry -- the Sun Belt region and the Golden Triangle -- making it an ideal long-term buy.

5 Stocks Under $49

Presented by Motley Fool Stock Advisor

We hear it over and over from investors, "I wish I had bought Amazon or Netflix when they were first recommended by The Motley Fool. I'd be sitting on a gold mine!" It's true, but we think these 5 other stocks are screaming buys. And you can buy them now for less than $49 a share! Click here to learn how you can grab a copy of "5 Growth Stocks Under $49" for FREE for a limited time only.

These bargain REITs hold a lot of upsides. They could benefit from share price growth as the market and sentiment over real estate's future recover. But dividend growth over the long term can lead to tremendous earnings for investors. All these REITs boast high-quality portfolios in their respective industries and make them worthwhile stocks to consider investing in.

Liz Brumer-Smith has positions in Digital Realty Trust, Independence Realty Trust, Inc., Plymouth Industrial REIT, Inc., Prologis, Sun Communities, and Terreno Realty. The Motley Fool has positions in and recommends Digital Realty Trust, Independence Realty Trust, Inc., Plymouth Industrial REIT, Inc., Prologis, Sun Communities, and Terreno Realty. The Motley Fool recommends Pebblebrook Hotel Trust and UMH Properties. The Motley Fool has a disclosure policy.