The Federal Reserve raised its benchmark interest rate by 25 basis points to a range of 3.75%-4.00% on Wednesday, aiming to manage persistent inflation. This rate increase poses challenges for real estate investment trusts (REITs) by increasing borrowing costs and making fixed-income investments more attractive.
Investors should consider five REITs trading below $10 per share, all offering dividend yields above 3%. Adamas Trust (ADAM) has a stock price of $9 and a yield of approximately 12%, while Cherry Hill Mortgage Investment (CHMI), priced at $2, offers a yield of about 14%. Industrial Logistics Properties Trust (ILPT) and KKR Real Estate Finance Trust (KREF) trade at $7 and $6, respectively, with yields around 5% and 6%.
China Overseas Land & Investment (CAOVY) trades at $8 and has a yield of roughly 3.36%, noted for a revenue surge of 17% to $9.2 billion in the first half of 2026. These companies may present attractive entry points for income investors amid higher interest rates.
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