Real estate investing can be a great way to generate passive income. However, recurring cash flow is only part of the return. The other side is price appreciation, as the value of the underlying real estate rises.

Real estate investment trusts (REITs) make it easy for anyone to participate in the wealth creation of real estate. Several have produced monster total returns over the past decade, driven partly by their growing dividends. Here's a closer look at five of the sector's best performers.

Terreno Realty (NYSE: TRNO) has delivered a total return of almost 300% over the last 10 years (nearly 15% annualized), which has easily beaten the broader market (the S&P 500's total return is around 200% and 12% annualized). The industrial REIT has a very focused strategy of acquiring warehouses in six major coastal markets. That has enabled it to benefit from tight market conditions to capture above-average rent growth.

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Source Fool.com