3 ftse 250 reit to consider for passive income in 2025

Real estate investment trusts (Reit) are often found in the portfolios of the United Kingdom investors looking for passive income. This is because the rules about these specific trusts require that 90% of the profits be returned to investors in the form of dividends.

The best part is that they provide exposure to real estate market without the high cost of real estate investment in the United Kingdom.

He Ftse 250 It is home to some of the best reit in the United Kingdom, offering high yields, protection against inflation and long -term capital growth. Persistent inflation has been hard for Reit lately, but this could soon change with the promise of interest rate cuts.

Keep in mind that tax treatment depends on the individual circumstances of each client and may be subject to changes in the future. The content in this article is provided only for information purposes. It is not intended to be, it does not constitute any form of fiscal advice.

Here are three popular reit that is worth considering for passive income in 2025.

Primary health properties

For investors seeking stability, Primary health properties (LSE: PHP) is a good option to consider. It focuses on medical centers and properties backed by NHS, providing an essential infrastructure that generates consistent rental income.

The yield is higher than the majority, by around 7.5%, which has increased from only 4% in 2020. The company also increased consecutive dividends for 27 years to an average of 3.3% per year.

However, high performance is largely the result of the price of the action that decreases 41.6% in the last five years.

The high yields of inflation and the increase in bonds have suppressed the valuations of the property, which leads to a fall in the value of PHP (NAV) net assets. The Bank of England hinted at rates cuts this year, but if they do not materialize, there is a risk that the price may fall more.

However, if you recover, the low current assessment could be an opportunity to obtain some actions at a low price.

Tritax Big Box Reit

Tritax Big Box (LSE: BBOX) is a reit focused on logistics that is popular among dividend -centered investors. It has a large scale stores essential for supply chains, so its tenants are generally well established companies that sign long -term leases.

Historically, the annualized 5.1% rental growth is enjoyed and maintains almost 100% occupation in most times. The yield is a little smaller than 5.25%, but its price is more stable, 2.5% in five years. Except for a lower reduction in 2020, the yield has increased for 10 years.

But like any real estate investment, it faces risks of increases in interest rates, tenant stability and rental growth. If construction and labor costs increase faster than rental income, could squeeze profits and reduce dividends.

Some notable tenants include amazon, Tesco and Occaus.

PRS REIT

PRS REIT It focuses on the private rental sector (PRS), providing exposure to the growing demand for high quality affordable rental housing in the United Kingdom.

With the prices of the properties, the demand for affordable rental housing is on the rise. PRS 'pointed out this need and positioned himself to benefit from long -term rental income.

With only 3.8%, it has the lowest dividend of the lot, but the price increases 17% in the last five years.

Invest in reit

FTSE 250 Reit offers attractive opportunities to obtain passive income from the property without the high cost of direct property. Either to aim at high performance dividends, inflation protection or long -term growth, the above options offer a single investment case.

As always, it is crucial to consider the risks and evaluate the individual investment objectives. But for those looking for passive income, it is worth considering as part of a well diversified portfolio