Retail REITs own and manage shopping centers, malls, and freestanding retail properties leased to tenants ranging from large national chains to local stores. Revenue is primarily derived from base rent, percentage rent, and common-area maintenance fees. The residential REIT industry resides within the parent real estate sector, which also includes the below industry-specific REITs.

• Diversified REITs
• Healthcare REITs
• Hotel and motel EITs
• Industrial REITs
• Mortgage REITs
• Office REITs
• Residential REITs
• Specialty REITs

The retail REITs industry is undergoing long-term transformation due to e-commerce growth, changing consumer habits, and tenant bankruptcies. Well-located, necessity-based retail—such as grocery-anchored centers—remains resilient, while enclosed malls face ongoing structural headwinds. Inflation and rising interest rates also influence redevelopment and tenant demand.

Dividend yields are often above average for residential REITs, but payout stability depends heavily on property type and tenant mix. Grocery and necessity retail REITs tend to deliver reliable income, while mall-focused operators face higher volatility. Investors should weigh the risk of tenant turnover and redevelopment costs when evaluating dividend safety.