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 invest in most of realty residential or commercial property types, consisting of offices, house buildings, storage facilities, retail centers, medical facilities, data centers, cell towers and hotels.

- Investing in REITs
- Why Buy REITs
- How to Purchase REITs
- REIT Directory
- REIT Funds
- Sustainability
- REIT Assets by State
- Global Property
- Investor Resources

Nareit's REIT Directory supplies a detailed list of REIT and openly traded property companies that are members of Nareit. The directory can be arranged and filtered by sector, noting status, and stock efficiency.

- REIT Data
- REIT Indexes
- REIT Market Data
- Research Library

CEM Benchmarking's 2024 study also exposes allowances, returns, volatility, and risk-adjusted performance of 12 asset classes over 25-year period.

- Industry News
- Publications
- Advertising
- Media Contacts

Partnerships are occurring throughout a variety of REIT residential or commercial property sectors.

- Upcoming Events
- REITweek
- REITwise
- REITworld
- REIT IR Symposium
- Webinars

The industrial property industry faces threats from natural disasters and climate modification, making readiness important for protecting residential or commercial properties and neighborhoods linked to REITs. Join Nareit and sustainability specialists to go over proactive measures that can lower catastrophe costs and yield financial benefits 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 led the U.S. REIT industry by ensuring its members' benefits are promoted by supplying unparalleled advocacy, financier outreach, continuing education and networking.

What's a REIT (Real Estate Investment Trust)?

1. Home

A REIT or property investment trust, is a business that owns, runs or funds income-producing realty. Imitated mutual funds, REITs historically have actually offered investors with routine earnings streams, diversity, and long-lasting capital gratitude. Most REITs are public business that trade on significant stock exchanges, but other types of REITs are offered to investors.

&& amp; amp; amp; amp; amp; amp; amp; amp;

nbsp; A REIT is a business that owns, runs, or finances income-producing realty REITs allow daily Americans to gain from owning shares in important property, and having access to dividend-based earnings and total returns.

REITs enable anyone to purchase portfolios of property properties the same way they purchase other markets - through the purchase of private company stock or through a mutual fund or exchange traded fund (ETF). REIT stockholders make a share of the income produced - without needing to go out and buy, handle, or financing residential or commercial property themselves.

Approximately 170 million Americans live in households bought REITs through their 401( k), IRAs, pension, and other financial investment funds.

What are the various types of REITs?

Public REITs
Public REITs, typically described simply as REITs, are signed up with the SEC and trade on nationwide stock market.

Public Non-listed REITs (PNLR).
PNLRs are signed up with the SEC but do not trade on nationwide stock exchanges. Liquidity alternatives vary and might take the form of share redeemed programs or secondary market deals however are typically restricted.

Private REITs.
Private REITs are property funds or business that are exempt from SEC registration and whose shares do not trade on nationwide stock exchanges. Private REITs normally can be offered only to institutional financiers.


The two main classifications of REITs, in terms of the investments they pursue, are equity REITs and mortgage REITs, typically called mREITs.

Equity REITs.
Equity REITs create income through the collection of lease on, and from sales of, the residential or commercial properties they own for the long-term.

Mortgage REITs (mREITs).
mREITs purchase mortgages or mortgage securities connected to business and/or homes.


What types of residential or commercial properties do REITs own?

Today, REITs purchase a wide scope of realty residential or commercial property types, from more traditional sectors such as workplace, domestic, accommodations 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 possessions across the U.S., with public REITs owning approximately $2.5 trillion in possessions. U.S. listed 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 forest across the U.S.

How do REITs make money?

Most REITs operate along a straightforward and quickly reasonable company design: By renting space and gathering rent on its real estate, the business generates income which is then paid out to shareholders in the type of dividends. REITs should pay at least 90% of their taxable earnings to shareholders-and most pay 100%. In turn, shareholders pay the earnings taxes on those dividends.

mREITs (or mortgage REITs) don't own real estate straight, rather they fund property and earn earnings from the interest on these investments.

Why invest in REITs?

REITs historically have provided competitive total returns, based on high, steady dividend income and long-lasting capital appreciation. Their comparatively low connection with other properties likewise makes them an exceptional portfolio diversifier that can help reduce total portfolio threat and increase returns. These are the characteristics of REIT-based genuine estate investment.

What are the methods to buy REITs?

A person might purchase shares in a REIT, which is noted on major stock exchanges, just like any other public stock. Investors might also acquire shares in a REIT shared fund or exchange-traded fund (ETF).

A broker, investment advisor, or financial planner can help evaluate an investor's monetary objectives and suggest proper REIT financial investments.

How have REITs carried out in the past?

REITs' track record of trusted and growing dividends, integrated with long-term capital appreciation through stock rate increases, has offered investors with attractive overall return performance for most durations over the previous 45 years compared to the broader stock exchange along with bonds and other possessions.

The previous few years have actually not been without their challenges for REITs, however overall the market has successfully weathered an international pandemic, greater interest rates, and stubborn inflation while preserving excellent balance sheets and access to capital markets. REITs, on average, have actually outperformed both private property and the wider stock market during and after the last six economic crises. For instance, REIT overall return efficiency over the previous twenty years has outstripped 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 realty investments?

Research shows that over extended periods of time, REITs have exceeded other types 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 with 7.7% for personal property.

You Might Also Like ...

What's a REIT?

REITs, or property financial investment trusts, are business that own or financing income-producing realty throughout a range of residential or commercial property sectors. These genuine estate companies need to meet a variety of requirements to certify as REITs. Most REITs trade on significant stock exchanges, and they use a number of advantages to financiers.

Why Invest in REITs

REITs traditionally have provided competitive total returns, based upon high, constant dividend earnings and long-lasting capital appreciation. Their comparatively low correlation with other assets also makes them an excellent portfolio diversifier that can help lower total portfolio danger and boost returns. These are the attributes of realty financial investment.

About Nareit

Nareit works as the around the world representative voice for REITs and realty business with an interest in U.S. genuine estate. Nareit's members are REITs and other property business throughout the world that own, run, and financing income-producing genuine estate, in addition to those companies and individuals who recommend, study, and service those services.

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 property business with an interest in U.S. property and capital markets. Nareit's members are REITs and other services throughout the world that own, operate, and finance income-producing realty, as well as those firms and people who advise, study, and service those companies. National Association of Real Estate Investment Trusts ® and Nareit ® are registered trademarks of the National Association of Real Estate Investment Trusts (Nareit).