The real estate sector has been one of the worst-performing parts of the stock market since the Federal Reserve started raising interest rates in 2022, but this has created some opportunities to add top-quality businesses to your portfolio at historically cheap valuations. Here are three in particular that are built to deliver excellent long-term returns that are worth a closer look right now.

Realty Income (NYSE: O) is the first real estate investment trust, or REIT, I ever bought, and I've been building my position for well over a decade now. If you aren't familiar, Realty Income owns a portfolio of more than 15,000 single-tenant properties throughout the U.S. and Europe, mostly occupied by retail tenants.

The stock is designed for excellent long-term returns, no matter what the economy does. Its tenants operate mostly in recession-resistant or e-commerce resistant businesses. Think of properties like supermarkets, drug stores, and warehouse clubs. Plus, tenants sign long-term leases that require them to cover taxes, insurance, and maintenance costs. All Realty Income has to do is acquire a property with a high-quality tenant in place, and then enjoy year after year of predictable, growing Income.

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Source Fool.com