2 REITs that could give investors massive, long-term passive income

Real estate investment trusts (REITs) are notorious for offering high dividend yields and generating chunky passive incomes. Sadly, with higher interest rates throwing a spanner into their debt-heavy balance sheets, many of these enterprises have struggled in recent yearsâ¦ but not all of them.

Several REITs remain in strong financial form and are favourites among some expert analysts in 2026. So for investors seeking to unlock a reliable long-term passive income, which REITs should they be considering right now?

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1. Government-backed healthcare income

A top pick from both Berenberg Bank and Jefferies is Primary Health Properties (LSE:PHP). After completing its takeover of Assura in 2025, the REIT’s become the UKâs largest healthcare landlord with a portfolio of 1,142 properties spanning local surgeries, medical centres, private practices, and even a few hospitals.

With healthcare in continuous demand, the company’s had little trouble finding tenants or securing long-term leases.

As such, the average duration of its rental contracts currently spans 11 years, with occupancy standing at 99.1%. And since close to 90% of the groupâs rent is paid by the NHS, the company essentially earns government-guaranteed income.

Few REITs enjoy this level of revenue visibility. And as a result, management’s been able to consistently and intelligently allocate capital, ensuring steady growth, and 28 years of continuous dividend hikes â a pattern that experts believe will continue far into the future.

What could possibly go wrong? Having the NHS as a top tenant is a bit of a double-edged sword. While it ensures reliable and timely rent payments, it also means Primary Health Properties is at the mercy of government spending and political priorities.

If the NHS budget’s cut or efficiency initiatives reduce the required real estate footprint for healthcare, the groupâs impressive occupancy could come under pressure. Similarly, it gives the NHS far more power when negotiating lease renewals that limit the groupâs future cash flow growth.

These risks are something investors will need to consider carefully before adding this business to their income portfolio.

2. Warehousing & logistics income

With e-commerce volumes continuing to expand worldwide, demand for well-positioned logistics facilities continues to rise. And another top REIT from Berenberg to profit from this trend is Segro (LSE:SGRO).

As one of the largest commercial landlords in Europe, businesses such as Amazon, Deutsche Post DHL, and Tesco all rent from Segro to run their expansive operations. And with an impressive undeveloped landbank, this scale advantage is only becoming more prominent.

Occupancy stands at 94.3% with an average lease duration of 8.2 years as of June 2025. And just like Primary Health Properties, this long-term revenue visibility has enabled 11 years of continuous payout hikes.

However, unlike Primary Health Properties, Segro is more exposed to cyclical risks. Downturns in consumer spending directly impact demand for renewing old leases or signing new ones.

At the same time, if the wider market overdevelops new e-commerce capacity prior to a downturn, it could result in oversupply, putting downward pressure on rental rates. Nevertheless, Segro’s demonstrated a knack for navigating such environments in the past.

So once again, it might be a risk worth taking. But these arenât the only REITs on my radar right now.

The post 2 REITs that could give investors massive, long-term passive income appeared first on The Motley Fool UK.

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Zaven Boyrazian has no position in any of the shares mentioned. The Motley Fool UK has recommended Amazon, Primary Health Properties Plc, Segro Plc, and Tesco Plc. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.