The benefit of the Federal Reserve lowering interest rates may not happen until late this year, if at all. Even so, listed real estate investment trusts (REITs) are delivering for investors.
Read more: Green Shoots Emerging in the Real Estate Sector
For example, the largest real estate ETF is higher by 8.60% year-to-date, but the ALPS REIT Dividend Dogs ETF (RDOG) far exceeds that. RDOG is up 14.38% since the start of 2026, outpacing its larger rival and the broader market in the process. The ETF, which tracks the S-Network REIT Dividend Dogs Index, turned 18 years old last month. It’s outperforming with a trailing 12-month yield of 6.14% — above-average in a category known for its potent income streams.
Of course, RDOG’s bullishness is aided by holding the right REITs, including Park Hotels & Resorts (PK), the ETF’s fourth-largest holding and a stock that some experts view as offering value.
“Park Hotels & Resorts holds the first spot as the least expensive company on our list of the best REITs to buy, trading 34% below our fair value estimate of $19.50 per share,” noted Morningstar’s Tori Brovet. “Park Hotels & Resorts owns upper-upscale and luxury hotels, with 21,042 rooms across 33 hotels in the United States. It also offers the highest REIT forward dividend yield on our list at 7.75%.”
Not a Gamble, But…
RDOG embodies the defensive spirit of the real estate sector. Neither the sector nor the ETF are “gambles” in the true sense of that word. However, the ETF could benefit from goings on in the casino world, because Vici Properties (VICI) and Gaming and Leisure Properties (GLPI) — the two largest owners of casino real estate — are RDOG member firms.
Amid a spate of large-scale consolidation activity in that space, including Barry Diller offering $18 billion for MGM Resorts (MGM) and Tilman Fertitta bidding $17.6 billion for Caesars Entertainment (CZR), analysts see avenues for the two RDOG holdings to benefit.
That would likely come from the REITs diversifying tenant rosters or adding properties to their portfolios. At the same time, large acquired companies could potentially shed some assets.
“Another potential consequence of the CZR deal, in our view, is potential pickup in M&A interest from proven (mid-tier) operators that could already be in the process of arranging financing for some properties believed to be under operated. VICI also sees intriguing opportunity with the mix of brands under the CZR’s umbrella, that could extract value if prioritized,” observed Truist analyst Barry Jonas.
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