Structure & Management
Real Estate Investment Trusts (REITs) require specialized asset-class knowledge, making these investments well suited for active management.
The REIT umbrella falls into three main categories: Equity, Mortgage and Hybrid. As such, investors are able to choose the REIT structure that complements their existing portfolio of investments.
Popular for its income-generating properties (they must distribute 90 percent of their portfolio income in dividends), this structure may provide above-average dividend distribution.
Convenience & Accessibility
REITs allow individual investors to invest in commercial real estate that they may not otherwise be able to access.
Types of REITs
- Equity – these investments create income through either the long-term renting or the selling of an owned property.
- Mortgage – commonly known as m(REITs), these investments generate income by investing in the mortgage or mortgage securities or residential and commercial real estate.
- Hybrid – a combination of equity and mortgage investments.