Real estate investment trusts (REITs) are notorious for offering high dividend yields and generating chunky passive incomes. Sadly, with higher interest rates throwing a spanner into their debt-heavy balance sheets, many of these enterprises have struggled in recent years… but not all of them.
Several REITs remain in strong financial form and are favourites among some expert analysts in 2026. So for investors seeking to unlock a reliable long-term passive income, which REITs should they be considering right now?
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1. Government-backed healthcare income
A top pick from both Berenberg Bank and Jefferies is Primary Health Properties (LSE:PHP). After completing its takeover of Assura in 2025, the REIT’s become the UK’s largest healthcare landlord with a portfolio of 1,142 properties spanning local surgeries, medical centres, private practices, and even a few hospitals.
With healthcare in continuous demand, the company’s had little trouble finding tenants or securing long-term leases.
As such, the average duration of its rental contracts currently spans 11 years, with occupancy standing at 99.1%. And since close to 90% of the group’s rent is paid by the NHS, the company essentially earns government-guaranteed income.
Few REITs enjoy this level of revenue visibility. And as a result, management’s been able to consistently and intelligently allocate capital, ensuring steady growth, and 28 years of continuous dividend hikes – a pattern that experts believe will continue far into the future.
What could possibly go wrong? Having the NHS as a top tenant is a bit of a double-edged sword. While it ensures reliable and timely rent payments, it also means Primary Health Properties is at the mercy of government spending and political priorities.
If the NHS budget’s cut or efficiency initiatives reduce the required real estate footprint for healthcare, the group’s impressive occupancy could come under pressure. Similarly, it gives the NHS far more power when negotiating lease renewals that limit the group’s future cash flow growth.
These risks are something investors will need to consider carefully before adding this business to their income portfolio.
2. Warehousing & logistics income
With e-commerce volumes continuing to expand worldwide, demand for well-positioned logistics facilities continues to rise. And another top REIT from Berenberg to profit from this trend is Segro (LSE:SGRO).
As one of the largest commercial landlords in Europe, businesses such as Amazon, Deutsche Post DHL, and Tesco all rent from Segro to run their expansive operations. And with an impressive undeveloped landbank, this scale advantage is only becoming more prominent.
Occupancy stands at 94.3% with an average lease duration of 8.2 years as of June 2025. And just like Primary Health Properties, this long-term revenue visibility has enabled 11 years of continuous payout hikes.
However, unlike Primary Health Properties, Segro is more exposed to cyclical risks. Downturns in consumer spending directly impact demand for renewing old leases or signing new ones.
At the same time, if the wider market overdevelops new e-commerce capacity prior to a downturn, it could result in oversupply, putting downward pressure on rental rates. Nevertheless, Segro’s demonstrated a knack for navigating such environments in the past.
So once again, it might be a risk worth taking. But these aren’t the only REITs on my radar right now.
