been thinking about how to buy reits lately, especially with passive income becoming more of a priority for a lot of people. if you've got around $1k sitting around, there are actually some solid dividend plays in the REIT space worth looking at right now.

the thing about REITs is they're required by law to distribute 90% of taxable income as dividends, so you get a pretty steady income stream without having to own physical properties yourself. that's the appeal. but not all REITs are the same - some are way better positioned than others depending on market conditions.

Realty Income (O) is probably the most obvious choice if you're just getting started learning how to buy reits for income. this company has been increasing dividends for over 30 years straight, and they do something unique - monthly dividend payments instead of quarterly. just hit their 665th consecutive dividend payment. their whole model is built on triple-net leases where tenants cover operating costs, so Realty Income basically just collects stable rent. they own thousands of properties across the US, UK, and Europe, leased to over 1,500 different tenants in non-discretionary sectors like pharmacies and grocery stores. in Q3 they crushed earnings - revenue up 11% to $1.47B and FFO per share at $1.07. occupancy stayed strong at 98.7%. the yield is sitting around 5.7%, way higher than the S&P 500 average of 1.2%. that's serious income generation.

if you want exposure to a different REIT angle, Prologis (PLD) is the global logistics play. they own or have stakes in about 1.3 billion square feet of property worldwide. their yield is lower at around 3.2%, but they've raised dividends for 12 straight years. roughly 3% of global GDP flows through their properties annually, which tells you how critical their infrastructure is. they work with Amazon, Home Depot, FedEx - these aren't small-time tenants. Q3 2025 was massive for them: core FFO per share jumped 4.2% to $1.49, portfolio occupancy hit 95.3%, and they signed a record 62 million square feet of new leases. they're also making a big strategic move into data centers, securing 5.2 gigawatts of power capacity. with e-commerce still expanding and needing way more logistics space than traditional retail, Prologis is positioned perfectly. this is the kind of stock you'd be really glad to have owned a decade from now.

Welltower (WELL) takes a different approach - they focus on healthcare infrastructure, mainly senior housing across the US, UK, and Canada. their yield is lower at 1.5%, but their growth is impressive. they operate senior housing, post-acute care, and medical office properties. they're not just landlords - they actually partner long-term with healthcare operators to integrate into the ecosystem. they just launched a new private funds management business to manage third-party capital in healthcare real estate. Q3 normalized FFO per share skyrocketed 21% year-over-year to $1.34, and their senior housing portfolio grew 20%. they completed $1.9B in investments that quarter and had $11.9B in available liquidity. if you're looking at how to buy reits with growth potential alongside income, Welltower's healthcare focus gives you exposure to an aging population trend.

so yeah, if you're thinking about how to buy reits as a way to generate passive income with $1k, these three cover different angles of the market. Realty Income gives you high yield and stability, Prologis offers growth through logistics and data centers, and Welltower provides healthcare sector exposure with strong fundamentals. each one has a different risk-reward profile, so it depends on what you're optimizing for - pure income, growth, or a mix.