One of the best ways to generate passive income is with some of the most undervalued real estate investment trusts (REITs). Not only do these undervalued REIT stocks offer attractive growth, and diversification relative to other assets, but they also have attractive yields.

Look at Realty Income (NYSE:O), for example. Also known as The Monthly Dividend Company, it currently yields 5.57%, and just announced a dividend of $0.257 per share ($3.084 annualized) and is payable on May 15, 2024 to stockholders of record as of May 1, 2024.

With that one REIT, your money just made you more money. And all you had to do was hold the stock. Making undervalued REIT stocks even more attractive, they’re interest-rate sensitive, which means they tend to do better when interest rates pull back.

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With higher hopes for interest rate cuts from the Federal Reserve, we could soon see greater interest for REIT investments.

With that, here are some of the most undervalued REIT stocks you may want to own today.

Agree Realty (ADC)

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With a yield of 5.12%, rebounding shares of Agree Realty (NYSE:ADC) are attractive. Last trading at $58.56, I’d like to see ADC retest $66 initially. In addition, the omni-channel retail REIT just raised its monthly dividend to $0.25, a 12% month over month increase. It’s also payable on May 14 to shareholders of record as of April 30.

Better, the REIT just reported funds from operations (FFO) of $1.01, which beat by a penny. Revenue of $149.45 million, up 18% year over year, exceeding expectations by $1.09 million. As of March 31, ADC owned 2,161 properties in 49 states, with about 44.9 million square feet of leasable area.

According to Agree Realty’s CEO, Joey Agree, “With total liquidity of over $920 million, more than $385 million of hedged capital and no material debt maturities until 2028, we enjoy ample balance sheet flexibility to execute our disciplined operating strategy. Our best-in-class portfolio and fortress balance sheet provide us with conviction that we can achieve 2024 AFFO per share between $4.10 and $4.13 without deviating from our core strategy or moving up the risk curve.”

Iron Mountain (IRM)

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We can also look at Iron Mountain (NYSE:IRM), which currently yields 3.42%.

The REIT is aggressively expanding its data center capacity to meet the demand of the generative artificial intelligence (AI) boom. This makes it attractive, especially on a recent slight pullback. Making it even more attractive, IRM just declared a 65-cent dividend that’s payable on July 5 to shareholders of record as of June 17.