Real estate investment trusts, or REITs, are generally not thought of as the most exciting businesses, and to be fair, they aren't. Consider Realty Income (NYSE: O), one of the largest and oldest REITs in the market. The company owns a portfolio of single-tenant properties that it leases out to tenants on long-term, triple-net leases. Not exactly in the same league excitement-wise as a cloud infrastructure or AI company, is it?

However, it's a common misconception that a "boring" business can't produce market-beating returns for investors over the long run. Realty Income has done it and with far less volatility than the typical S 500 or stock.

If you aren't familiar, here's the quick explanation of Realty Income's business. The company owns a portfolio of more than 13,100 commercial properties, most of which are occupied by a single tenant. About three-quarters of the company's rental Income comes from retail tenants, and there are also industrial, agricultural, and gaming properties in the REIT's portfolio (Realty Income just purchased a stake in the Bellagio in Las Vegas, for example). Its properties are located in all 50 states as well as in several European countries.

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Source Fool.com