R
eal estate can be an effective tool for building wealth, offering opportunities to generate passive income and grow your net worth as property values rise.

    One of the most accessible ways to invest in real estate is through real estate investment trusts (REITs), which allow you to buy shares of a diversified portfolio of income-producing properties at a relatively low cost. Here are two compelling REIT options trading around $125 per share.

    Camden Property Trust focuses on multifamily apartment communities across the southern United States, owning and operating 172 properties with over 58,000 apartment homes in 15 major markets. The company generates steady rental income, paying out a significant portion as dividends to shareholders. Camden's shares currently yield approximately 3.3% at their recent price of $125 per share.

    The REIT's dividend income is complemented by its growth prospects. By focusing on areas with above-average population and job growth, Camden maintains high occupancy levels and experiences rising rents, driving opportunities for new developments and acquisitions that boost rental income. This growth has enabled the company to increase its dividend payout regularly.

    Over the past 30 years, Camden's stock price has risen by an average of more than 5.5% annually, while its total return has averaged 11.3% per year, including dividend income. The company is poised for continued growth, with five new communities under development and a strong pipeline of investments.

    Sun Communities, another residential REIT, focuses on niche properties such as manufactured home communities, RV parks, and marinas. With over 659 properties across the United States, Canada, and the UK, Sun Communities offers a unique investment opportunity. The company's shares also trade around $125 per share and yield approximately 3% at their recent price.

    Manufactured home communities have proven to be a resilient investment, benefiting from durable demand due to the high cost of relocating these homes. As a result, Sun Communities has delivered 20 consecutive years of positive net operating income growth, with its NOI rising at a 5.2% compound annual rate since 2020.

    The REIT's investments in expanding its manufactured home community portfolio and diversifying into other niche property types have further boosted shareholder value. Over the past three decades, Sun Communities' share price has risen by more than 6% annually, while its total return has averaged 12.8% per year, including dividend income.

    Both Camden Property Trust and Sun Communities are well-positioned for continued growth, with durable demand for manufactured housing and outdoor experiences driving their prospects. With a solid balance sheet and financial flexibility to expand their portfolios, these REITs offer compelling opportunities for investors seeking passive income and long-term wealth growth.