REITs have dropped about 8% over the last three months, mainly because of rising interest rates and bond yields. Realty Income (O) is down 14% and Agree Realty (ADC) is down 16%. Both are net-lease REITs. They make money on the spread between their borrowing costs and rental income. With rates going up, their cost of capital is higher, but their long-term leases have rent hikes locked in at lower levels. Realty Income is positioned as the safer option right now. It has a 5.7% yield, a $53 billion market cap, and a diversified portfolio. Agree Realty is smaller with an $8.5 billion market cap and yields around 4.7%. ADC has faster dividend growth, recently raising it by 4% compared to O's 1%, but their growth relies heavily on acquisitions which are getting more expensive. Property markets usually adjust to rates over time, but profitability is under pressure for now.