What s A REIT Real Estate Investment Trust
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, including offices, apartment, storage facilities, retail centers, medical centers, information centers, cell towers and hotels.
- Buying REITs
- Why Buy REITs
- How to Invest in REITs
- REIT Directory
- REIT Funds
- Sustainability
- REIT Assets by State
- Global Property
- Investor Resources
Nareit's REIT Directory offers a detailed list of REIT and openly traded property companies that are members of Nareit. The directory can be sorted and filtered by sector, listing status, and stock performance.
- REIT Data
- REIT Indexes
- REIT Market Data
- Research Library
CEM Benchmarking's 2024 study also exposes allocations, returns, volatility, and risk-adjusted performance of 12 possession classes over 25-year period.
- Industry News
- Publications
- Advertising
- Media Contacts
Partnerships are happening across a variety of REIT residential or commercial property sectors.
- Upcoming Events
- REITweek
- REITwise
- REITworld
- REIT IR Symposium
- Webinars
The commercial property industry deals with threats from natural catastrophes and environment change, making preparedness important for safeguarding residential or commercial properties and neighborhoods connected to REITs. Join Nareit and sustainability specialists to go over proactive measures that can decrease catastrophe costs and yield economic advantages that surpass initial investments.
- About Nareit
- Leadership Team
- Staff
- Membership
- Nareit Brand
- Nareit Foundation
- Advocacy
- Industry Awards
- Career Resources
- Advertising
For 60 years, Nareit has actually led the U.S. REIT industry by ensuring its members' finest interests are promoted by supplying unrivaled advocacy, investor outreach, continuing education and networking.
What's a REIT (Real Estate Investment Trust)?
1. Home
A REIT or real estate investment trust, is a business that owns, operates or funds income-producing real estate. Modeled after shared funds, REITs traditionally have offered investors with regular earnings streams, diversity, and long-lasting capital gratitude. Most REITs are public business that trade on major stock market, however other kinds of REITs are available to financiers.
&& amp; amp; amp; amp; amp; amp; amp; amp;
nbsp; A REIT is a business that owns, operates, or financial resources income-producing real estate REITs enable everyday Americans to gain from owning shares in important real estate, and having access to dividend-based income and overall returns.
REITs allow anyone to purchase portfolios of property assets the exact same way they invest in other industries - through the purchase of individual business stock or through a mutual fund or exchange traded fund (ETF). REIT stockholders earn a share of the earnings produced - without having to go out and purchase, handle, or financing residential or commercial property themselves.
Approximately 170 million Americans reside in homes invested in REITs through their 401( k), IRAs, pension, and other investment funds.
What are the different kinds of REITs?
Public REITs
Public REITs, usually referred to just as REITs, are signed up with the SEC and trade on national stock exchanges.
Public Non-listed REITs (PNLR).
PNLRs are signed up with the SEC however do not trade on national stock exchanges. Liquidity choices differ and may take the type of share redeemed programs or secondary market transactions however are normally limited.
Private REITs.
Private REITs are genuine estate funds or business that are exempt from SEC registration and whose shares do not trade on national stock market. Private REITs usually can be offered just to institutional investors.
The two main categories of REITs, in regards to the financial investments they pursue, are equity REITs and mortgage REITs, typically called mREITs.
Equity REITs.
Equity REITs generate 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 buy mortgages or tied to business and/or property homes.
What kinds of residential or commercial properties do REITs own?
Today, REITs purchase a broad scope of realty residential or commercial property types, from more standard sectors such as office, residential, lodging and retail to digital economy sectors that consist of logistics, information centers, and cell towers
In total, REITs of all types jointly own more than $4 trillion in gross possessions across the U.S., with public REITs owning roughly $2.5 trillion in properties. U.S. noted REITs have an equity market capitalization of more than $1.3 trillion.
U.S. public REITs own an approximated 580,000 residential or commercial properties and 15 million acres of forest across the U.S.
How do REITs earn money?
Most REITs operate along an uncomplicated and quickly understandable service design: By renting space and gathering rent on its real estate, the business produces earnings which is then paid out to investors in the type of dividends. REITs should pay a minimum of 90% of their taxable earnings to shareholders-and most pay 100%. In turn, investors pay the earnings taxes on those dividends.
mREITs (or mortgage REITs) don't own real estate straight, instead they fund realty and make income from the interest on these financial investments.
Why buy REITs?
REITs traditionally have provided competitive overall returns, based on high, constant dividend earnings and long-lasting capital gratitude. Their relatively low connection with other assets likewise makes them an outstanding portfolio diversifier that can help in reducing general portfolio danger and increase returns. These are the characteristics of REIT-based genuine estate financial investment.
What are the ways to purchase REITs?
An individual might buy shares in a REIT, which is listed on significant stock exchanges, simply like any other public stock. Investors may also buy shares in a REIT mutual fund or exchange-traded fund (ETF).
A broker, investment consultant, or monetary planner can assist examine a financier's monetary objectives and advise appropriate REIT investments.
How have REITs performed in the past?
REITs' performance history of dependable and growing dividends, integrated with long-term capital appreciation through stock price increases, has provided financiers with attractive overall return performance for most periods over the past 45 years compared to the broader stock exchange in addition to bonds and other possessions.
The previous couple of years have not lacked their obstacles for REITs, but overall the industry has effectively weathered a global pandemic, higher interest rates, and stubborn inflation while preserving excellent balance sheets and access to capital markets. REITs, usually, have surpassed both personal property and the more comprehensive stock exchange during and after the last six economic crises. For example, REIT overall return performance over the previous 20 years has overtaken the efficiency of the S&P 500 Index and other major indices-as well as the rate of inflation.
How do REITs compare to other real estate financial investments?
Research shows that over extended time periods, REITs have outperformed other types of realty financial investments. For instance, CEM Benchmarking's 2024 study reveals that in between 1998 and 2022, REITs published average returns of 9.7% compared with 7.7% for personal property.
You Might Also Like ...
What's a REIT?
REITs, or realty financial investment trusts, are business that own or financing income-producing real estate throughout a series of residential or commercial property sectors. These genuine estate companies have to fulfill a variety of requirements to qualify as REITs. Most REITs trade on major stock market, and they provide a variety of advantages to investors.
Why Invest in REITs
REITs historically have actually provided competitive total returns, based on high, constant dividend earnings and long-term capital gratitude. Their comparatively low correlation with other properties also makes them an exceptional portfolio diversifier that can help lower total portfolio threat and boost returns. These are the attributes of genuine estate investment.
About Nareit
Nareit acts as the worldwide representative voice for REITs and realty business with an interest in U.S. real estate. Nareit's members are REITs and other property companies throughout the world that own, operate, and financing income-producing genuine estate, as well as those firms and people who advise, study, and service those companies.
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.
- Terms of Use.
- Contact Us
Nareit ®, the National Association of Real Estate Investment Trusts ®, is the around the world representative voice for REITs and publicly traded genuine estate business with an interest in U.S. real estate and capital markets. Nareit's members are REITs and other companies throughout the world that own, run, and financing income-producing genuine estate, as well as those companies and individuals who recommend, study, and service those organizations. National Association of Real Estate Investment Trusts ® and Nareit ® are signed up hallmarks of the National Association of Real Estate Investment Trusts (Nareit).
