Our Reits

Together, REITs of all kinds own almost $4 trillion in gross assets in the United States, with public REITs holding over $2.5 trillion. The equity market capitalization of listed REITs in the United States exceeds $1.2 trillion. An estimated 580,000 properties and 15 million acres of timberland are owned by U.S. public REITs nationwide. Offices, apartment complexes, warehouses, retail establishments, healthcare facilities, data centers, cell towers, infrastructure, and hotels are just a few of the many real estate property types in which REITs invest. While some REITs include a variety of property kinds in their portfolios, the majority concentrate on only one.

The business strategy used by the majority of REITs is simple and easy to comprehend: the firm makes money by renting out space and collecting rent on its real estate, which is then distributed as dividends to shareholders. The majority of REITs distribute 100% of their taxable income to shareholders, but they are required to distribute at least 90%. The income taxes on the dividends are then paid by the shareholders. Mortgage REITs, often known as mREITs, finance real estate and profit from the interest earned on these assets rather than directly owning it.

Due to their long-term capital growth and strong, consistent dividend income, REITs have typically produced competitive total returns. They are also a great portfolio diversifier that can help lower overall portfolio risk and boost returns due to their relatively low correlation with other assets. These are the traits of real estate investing based on REITs.

When compared to bonds and other assets, as well as the larger stock market, REITs have offered investors attractive total return performance for the majority of the last 45 years due to their consistent and increasing dividend history and long-term capital appreciation through stock price increases. Listed REITs are professionally run, publicly listed organizations that aim to maximize shareholder value in their operations. This entails setting up their properties to draw in renters and generate income, as well as managing their portfolios and purchasing and disposing of assets to increase their value over the course of extended real estate cycles.