3 top ASX REITS to consider for long-term passive income

MotleyFool
08/21

When most income investors look to the share market for their latest investment, ASX real estate investment trusts (REITs) often don't end up at the top of the list.

Instead, it's usually the usual suspects like Westpac Banking Corp (ASX: WBC), Telstra Group Ltd (ASX: TLS), or Wesfarmers Ltd (ASX: WES) that attract the most attention.

However, this preference might be to the detriment of those seeking long-term passive income.

Although REITs don't usually offer franking credits, many make up for this with massive dividend yields that can help bolster the passive income available to investors.

So today, let's discuss three ASX REITs that I think would be fine choices for anyone seeking substantial dividend income from the share market.

Three ASX REITs to boost your passive income

Charter Hall Long WALE REIT (ASX: CLW)

First up, we have this ASX REIT from Charter Hall. The Long WALE REIT houses property assets with a relatively long 'weighted average lease expiries', or WALEs. These are mostly government-leased buildings, but also include bank branches, offices, warehouses, distribution centres, and telephony exchanges.

As the name implies, these properties have relatively long WALEs, with the current average sitting at 9.3 years.

In my view, this offers enormous stability to income investors. The Charter Hall Long WALE REIT is currently trading on a trailing dividend distribution yield of 5.48%.

Scentre Group (ASX: SCG)

Next up, we have Scentre Group. You might not have heard of Scentre, but you will almost certainly have heard of its primary assets. Those would be the Westfield-branded network of shopping centres that it owns throughout Australia and New Zealand.

Scentre has had a few ups and downs in recent years as investors reassessed the value of shopping centres in the post-COVID era. But Scentre has proven that its business model was not only able to survive the pandemic, but thrive in its aftermath. Investors were treated to a 2.96% increase in income in 2025, which gives this ASX REIT a trailing yield of 4.36% today.

HomeCo Daily Needs REIT (ASX: HDN)

Finally, let's check out the ASX's HomeCo Daily Needs REIT. This property trust and passive income stock mostly owns properties that are leased to popular retailers in its portfolio. Some of its best clients include Bunnings Warehouse, Woolworths Group Ltd (ASX: WOW), Coles Group Ltd (ASX: COL), JB Hi-Fi Ltd (ASX: JBH), and Aldi. It also rents to both the federal and state governments.

Although HomeCo held its 2025 dividend distributions steady at last year's levels, this ASX REIT offers the highest potential level of passive income on this list. Its units are currently trading on a dividend distribution yield of a whopping 6.4%.

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