Entity Types

Real Estate Investment Trust

Acronym
REIT

Real Estate Investment Trusts (REITs) are companies setup to own income-producing real estate in a tax efficient manner.

  • some investors view REITS as bond substitutes and sources of fixed income
  • when interest rates rise, REIT prices often fall
  • when interest rates decline, REIT prices tend to rise

There are Numerous Types of REITS
  • REITS can have a sharp focusĀ  (Manhattan Office Buildings) or board focus (United States Real Estate)
  • REITS can hold a wide variety of real estate:
    • Offices
    • Apartment Buildings
    • Warehouses
    • Hospitals
    • Shopping Centers
    • Restaurants
    • Timberland
    • ETc.

Differences Between Bonds & REITS
  • REIT dividends are not fixed like bond payments
  • REIT dividends can rise or fall over time

Historic REIT Events