Why AI Makes REITs More Valuable

Jun. 23, 2025 2:12 PM ET, , , , , , , , , , , , 2 Comments
(10min)

Summary

  • AI adoption will drive long-term value for REITs by boosting efficiency, reducing costs, and expanding profit margins, ultimately raising FFO and fair valuations.
  • Management-intensive REIT sectors—like multifamily, retail, tower infrastructure, and single-family rentals—stand to benefit most from AI-powered operational improvements.
  • Smaller REITs may gain a competitive edge as AI tools help them operate more efficiently, potentially narrowing the gap with larger players.
  • I am optimistic about AI's impact on REITs, highlighting a few of my favorite picks.
  • Looking for more investing ideas like this one? Get them exclusively at High Yield Landlord. Learn More »

Commercial Real Estate Buildings Represent Property Leasing Or Realestate Investment - 3d Illustration

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Artificial intelligence is only valuable to the extent that it is valuable to its users.

That point may be easy to miss in an environment in which the developers of AI (along with the makers of

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This article was written by

20.48K Followers

Austin Rogers is a REIT specialist with a professional background in commercial real estate. He writes about high-quality dividend growth stocks with the goal of generating the safest growing passive income stream possible. Since his ideal holding period is "lifelong," his focus is on portfolio income growth rather than total returns.

Austin is a contributing author for the investing group High Yield Landlord, one of the largest real estate investment communities on Seeking Alpha, with thousands of members. It offers exclusive research on the global REIT sector, multiple real money portfolios, an active chat room, and direct access to the analysts. Learn more.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of ADC, VICI, AMH, MAA either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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