Yields of 7% and 11.3%! Should I buy these investment trusts for 2023?

I am looking for the best investment trust to buy for next year. Should I buy this high yielder to increase my passive income?

Regional REIT

Property shares are rich Regional REIT (LSE:RGL) could be a good investment to own during an economic downturn. Reliable rental income can provide better dividends than what the wider market offers.

Buying real estate investment trusts (REITs) may be a good idea for passive income. This is because the stock must pay out at least 90% of its annual profits in the form of dividends.

This means that, for example, the Regional REIT carries a large dividend yield of 11.3% for 2023.

But despite this, I prefer to buy other REITs for my own stock portfolio. This is due to the huge concentration of stocks in the office sector.

I am concerned about the long-term dividend growth prospects here as the UK economy struggles. Post-Brexit issues and major structural issues (such as low business investment and weak productivity) are major threats over the next decade.

On top of this, I feel that demand for Regional REIT properties may disappear as remote and hybrid working practices become more popular. Around 22% of all UK workers worked from home at least once a week in September, the latest government data shows.

The company’s focus on regional centers can help it to be more resilient than other office space providers. Investments outside of London will improve over the next decade. However, on balance, I think there are more attractive investment trusts for me to buy today.

abrdn European Logistics Income

The growth of work from home is a threat to Regional REITs. But I gave it abrdn European Logistics Income (LSE: ASLI) investors with a chance to turbocharge their return.

As the name suggests, this investment trust focuses on logistics and warehouse assets on the continent. In total, it has 27 assets in Germany, France, Spain, the Netherlands and Poland.

Buildings like this play an important role in allowing companies to provide their products to customers. The demand for such distribution hubs will grow strongly as e-commerce becomes stronger.

At the same time, the construction pipeline for these assets remains weak. This means that rents that tenants are expected to charge can continue to increase for years.

I also like abrdn European Logistics Income because of its broad geographic footprint. This reduces dependence on strong economic conditions in one or two areas. It also gives the trust exposure to fast-growing Eastern Europe.

However, the lack of acquisition targets could harm its growth strategy. But today the business does not suffer from a lack of quality options. It took three French assets and one Dutch warehouse in the three months to September.

I think this property investment trust could be a good buy for me in 2023, helped by its huge 7% dividend yield.