What's a REIT? Open submenu - What's a REIT?
- REIT Basics
- Types of REITs
- REIT Sectors
- REIT Glossary
- REIT FAQs
- The History of REITs
- How to Form a REIT
REITs buy most of property residential or commercial property types, consisting of workplaces, apartment, warehouses, retail centers, medical centers, information centers, cell towers and hotels.
- Investing in REITs
- Why Invest in REITs
- How to Invest in REITs
- REIT Directory
- REIT Funds
- Sustainability
- REIT Assets by State
- Global Real Estate
- Investor Resources
Nareit's REIT Directory offers a comprehensive list of REIT and publicly traded property business that are members of Nareit. The directory can be sorted and filtered by sector, noting status, and stock efficiency.
- REIT Data
- REIT Indexes
- REIT Market Data
- Research Library
CEM Benchmarking's 2024 research study also reveals allowances, returns, volatility, and risk-adjusted efficiency of 12 possession classes over 25-year duration.
- Industry News
- Publications
- Advertising
- Media Contacts
Partnerships are occurring across a series of REIT residential or commercial property sectors.
- Upcoming Events
- REITweek
- REITwise
- REITworld
- REIT IR Symposium
- Webinars
The industrial genuine estate market faces dangers from natural disasters and climate change, making readiness essential for safeguarding residential or commercial properties and neighborhoods linked to REITs. Join Nareit and sustainability experts to talk about proactive measures that can reduce catastrophe expenses and yield economic advantages that surpass preliminary financial investments.
- About Nareit
- Leadership Team
- Staff
- Membership
- Nareit Brand
- Nareit Foundation
- Advocacy
- Industry Awards
- Career Resources
- Advertising
For 60 years, Nareit has led the U.S. REIT market by ensuring its members' benefits are promoted by offering unparalleled advocacy, financier outreach, continuing education and networking.
What's a REIT (Real Estate Investment Trust)?
1. Home
A REIT or realty financial investment trust, is a business that owns, operates or funds income-producing property. Modeled after shared funds, REITs traditionally have actually supplied investors with routine income streams, diversification, and long-lasting capital appreciation. Most REITs are public companies that trade on significant stock market, however other kinds of REITs are readily available to financiers.
&& amp; amp; amp; amp; amp; amp; amp; amp;
nbsp; A REIT is a company that owns, runs, or financial resources income-producing real estate REITs make it possible for everyday Americans to gain from owning shares in important property, and having access to dividend-based income and total returns.
REITs enable anybody to buy portfolios of real estate assets the exact same method they purchase other markets - through the purchase of private company stock or through a mutual fund or exchange traded fund (ETF). REIT investors earn a share of the earnings produced - without having to go out and buy, manage, or financing residential or commercial property themselves.
Approximately 170 million Americans reside in families invested in REITs through their 401( k), IRAs, pension, and other financial investment funds.
What are the different kinds of REITs?
Public REITs
Public REITs, normally referred to simply as REITs, are signed up with the SEC and trade on national stock exchanges.
Public Non-listed REITs (PNLR).
PNLRs are registered with the SEC however do not trade on nationwide stock exchanges. Liquidity alternatives vary and might take the kind of share repurchase programs or secondary market deals but are normally limited.
Private REITs.
Private REITs are realty funds or companies that are exempt from SEC registration and whose shares do not trade on national stock market. Private REITs normally can be sold only to institutional investors.
The 2 main classifications of REITs, in regards to the investments they pursue, are equity REITs and mortgage REITs, commonly called mREITs.
Equity REITs.
Equity REITs produce earnings through the collection of rent on, and from sales of, the residential or commercial properties they own for the long-term.
Mortgage REITs (mREITs).
mREITs invest in mortgages or mortgage securities tied to industrial and/or homes.
What kinds of residential or commercial properties do REITs own?
Today, REITs invest in a broad scope of realty residential or commercial property types, from more conventional sectors such as office, domestic, lodging and retail to digital economy sectors that consist of logistics, information centers, and cell towers
In total, REITs of all types collectively own more than $4 trillion in gross properties across the U.S., with public REITs owning approximately $2.5 trillion in assets. U.S. noted REITs have an equity market capitalization of more than $1.3 trillion.
U.S. public REITs own an estimated 580,000 residential or commercial properties and 15 million acres of timberland across the U.S.
How do REITs make money?
Most REITs operate along an uncomplicated and quickly reasonable business design: By leasing space and collecting lease on its property, the company creates earnings which is then paid out to investors in the kind of dividends. REITs should pay out a minimum of 90% of their taxable earnings to shareholders-and most pay 100%. In turn, investors pay the income taxes on those dividends.
mREITs (or mortgage REITs) don't own realty straight, rather they fund realty and earn income from the interest on these investments.
Why invest in REITs?
REITs traditionally have actually delivered competitive total returns, based on high, constant dividend earnings and long-lasting capital appreciation. Their relatively low connection with other properties also makes them an exceptional portfolio diversifier that can help decrease general portfolio danger and increase returns. These are the characteristics of REIT-based real estate financial investment.
What are the ways to purchase REITs?
An individual might purchase shares in a REIT, which is listed on major stock market, much like any other public stock. Investors may also purchase shares in a REIT mutual fund or exchange-traded fund (ETF).
A broker, financial investment advisor, or financial planner can help evaluate an investor's financial objectives and advise proper REIT financial investments.
How have REITs carried out in the past?
REITs' track record of dependable and growing dividends, combined with long-lasting capital appreciation through stock price increases, has actually offered financiers with attractive total return performance for many periods over the past 45 years compared to the broader stock exchange along with bonds and other assets.
The past few years have not been without their difficulties for REITs, but overall the industry has actually successfully weathered a global pandemic, higher rate of interest, and persistent inflation while preserving excellent balance sheets and access to capital markets. REITs, on average, have exceeded both private genuine estate and the more comprehensive stock exchange during and after the last 6 economic downturns. For instance, REIT total return performance over the past twenty years has actually outstripped the efficiency of the S&P 500 Index and other significant indices-as well as the rate of inflation.
How do REITs compare to other genuine estate investments?
Research shows that over extended amount of times, REITs have actually exceeded other kinds of genuine estate financial investments. For example, CEM Benchmarking's 2024 study reveals that between 1998 and 2022, REITs posted average returns of 9.7% compared to 7.7% for private realty.
You Might Also Like ...
What's a REIT?
REITs, or realty investment trusts, are business that own or financing income-producing property across a series of residential or commercial property sectors. These property companies have to meet a variety of requirements to qualify as REITs. Most REITs trade on significant stock market, and they use a variety of advantages to financiers.
Why Invest in REITs
REITs traditionally have actually provided competitive overall returns, based on high, constant dividend income and long-term capital appreciation. Their relatively low correlation with other possessions also makes them an excellent portfolio diversifier that can assist reduce overall portfolio danger and boost returns. These are the characteristics of realty financial investment.
About Nareit
Nareit works as the around the world representative voice for REITs and property companies with an interest in U.S. genuine estate. Nareit's members are REITs and other property business throughout the world that own, run, and finance income-producing property, along with those firms and people who encourage, research study, and service those businesses.
Get Daily Real Estate News
Facebook.
LinkedIn.
Twitter.
YouTube.
RSS Feed
© Copyright Nareit 2025. All rights reserved.
1875|Street, NW.
Suite 500.
Washington, D.C. 20006
1-202-739-9400.
1-800-3-NAREIT.
1-202-739-9401 (fax)
Footer links
- Search.
- RSS feeds.
- Privacy.
- Cookie Policy.
- Regards to Use.
- Contact Us
Nareit ®, the National Association of Real Estate Investment Trusts ®, is the worldwide representative voice for REITs and openly traded genuine estate companies with an interest in U.S. genuine estate and capital markets. Nareit's members are REITs and other businesses throughout the world that own, operate, and financing income-producing genuine estate, as well as those firms and people who advise, research study, and service those companies. National Association of Real Estate Investment Trusts ® and Nareit ® are registered hallmarks of the National Association of Real Estate Investment Trusts (Nareit).
