Higher rents paid by San Diegans mean happy shareholders of the four REITs that own and operate 12,330 apartment units in San Diego County, or about 10% of rental stock. Multifamily occupancy is north of 95% and rents have risen 5.1% since Q1 2016, according to a CoStar analysis of rent for more than 200,000 San Diego County apartments. REITs must pay out at least 90% of taxable income annually in shareholder dividends, the San Diego Union-Tribune reports.

Because REITs are publicly traded companies, they help shed light on the rental sector, which is dominated by private investors. San Mateo-based Essex Property Trust, with about 5,000 units, is the largest REIT operating in San Diego County and third-largest landlord in the region. It paid shareholders the most based on funds from operations, which is a way to gauge the success of a REIT, as it includes net income, factoring in depreciation for building wear and tear and debt payments.

Essex charged renters an average of $1,809/month in San Diego County in Q1 2017, up 4.7% from Q1 2016. The REIT reported $199M in funds from operations in the first quarter of 2017, up from $181.7M in Q1 2016, and paid out $2.94/share to shareholders in the first quarter.

Only Aimco, San Diego County’s 10th-largest landlord, increased rents faster than the rest of the market, increasing its rate 5.2% over the last year, to an average rent of $1,896/month. The Denver-based REIT owns 2,001 San Diego County apartments and has 96.9% occupancy. Amico adjusted funds to include capital for building improvements, reporting funds from operations at $80.1M and paying $0.51/share.

AvalonBay Communities, which has more than 1,000 San Diego apartments, raised rents 5% over the last year to an average of $2,054/month. This Arlington, Texas-based REIT reported $287.3M in funds from operations, paying out $2.09/share.

Equity Residential, which has 3,505 San Diego apartments, has 98% occupancy and 5.1% growth over the last year to an average of $2,229/month. The Chicago-based REIT had $283.7M in funds from operation, paying out $0.74/share.

REITs may be a best bet for renters, according to MarketPointe Realty Advisors president Russ Valone, who said they are the first to discount rents when the market slows down because they are focused on maintaining occupancy. He said the REITs also get hit hardest during a downturn, because their tenants have high incomes and can easily afford to move or buy a home if they choose.