Search Results

Modern portfolio theory argues that well-diversified investment portfolios should include allocations to all assets in the market basket, including real estate, which is the third largest asset in the U.S. investment market basket after equities and bonds.

Investing in a 21st century real estate completion portfolio with REITs from tech-related property sectors can reduce the overall volatility of portfolio returns.

Modeled after mutual funds, REITs historically have provided investors of all types regular income streams, diversification and long-term capital appreciation. Investors can purchase stock in equity REITs and mortgage REITs. Equity REITs own properties in a variety of real estate sectors, such as retail, office and residential.

A REIT or real estate investment trust, is a company that owns, operates or finances income-producing real estate. Modeled after mutual funds, REITs historically have provided investors with regular income streams, diversification, and long-term capital appreciation. Most REITs are public companies that trade on major stock exchanges, but other types of REITs are available to investors.

Most REITs operate as equity REITs, providing investors with the opportunity to invest in portfolios of income-producing real estate. These companies own properties in a range of real estate sectors that are leased to tenants, such as office buildings, shopping centers, apartment complexes and more. They are required to distribute a minimum of 90% of their income to shareholders in the form of dividends.

REITs are an important part of the economy, investors’ portfolio and local communities. Taken individually, a single REIT-owned property can change the entire complexion of a neighborhood. When viewed as an entire industry, REITs significantly contribute to the tax base, job market, and community. 

REITs and commercial real estate in the United States will face a number of important questions in 2017. The economic expansion and the commercial real estate cycle are both more than a half-decade old; what are the risks of a downturn? The Federal Reserve has resumed raising its target for short-term interest rates; what impact will higher rates have on financing costs, on the demand for commercial real estate and on REIT share prices? The Presidential Election surprised most observers; what impact might the incoming Trump Administration have on the economy and commercial real estate?

Commercial real estate and REITs are likely to begin to recover in 2021, with the pace of improvement driven by the availability and effectiveness of a vaccine.

The underlying economic fundamentals for commercial real estate are gaining more momentum with a higher level of vaccine coverage, which is likely to boost REIT earnings growth over the remainder of this year.

Pension, endowment, and foundation funds control over $12 trillion in total assets, with approximately $900 billion invested in real estate.

For decades, defined benefit (DB) pension plans have been using real estate successfully within their investment portfolios.

Research says pension funds are leaving returns on the table by under-allocating to REITs.

Data center REITs see pipeline of new opportunities and long-term demand potential.