A real estate investment trust ("REIT") is a company that owns, operates or finances income-producing real estate. The shareholders of a REIT get a share of the income produced, without having to go out and buy, manage or finance the property. Real estate investment trusts ("REITs") allow individuals to invest in income-producing real estate on a large scale. A REIT is a company that owns and typically operates income-producing real estate or related assets.
These may include office buildings, shopping centres, flats, hotels, resorts, self-storage facilities, warehouses and mortgages or loans. Unlike other real estate companies, a REIT does not develop real estate for resale. Instead, a REIT purchases and develops properties primarily to operate them as part of its own investment portfolio. Hundreds or thousands of investors buy shares and contribute money to a pool, and professional managers decide how to invest it.
Healthcare REITs invest in the real estate of hospitals, medical centres, nursing homes and retirement homes. In fact, there is an intense and ongoing debate among investors as to whether real estate is a better long-term investment than equities. Since these investments can be bought and sold on major stock exchanges, REIT investors enjoy liquidity, i.e. the ability to quickly convert an investment into cash.
Nareit's members are REITs and other real estate companies around the world that own, operate and finance income-producing real estate, as well as the companies and individuals that advise, study and provide services to these companies. Before investing in a REIT, you should know whether or not it is publicly traded, and how this might affect the benefits and risks to you. REITs make their money through the mortgages that underlie the real estate development or from rental income once the property is developed. They work best in a diversified portfolio where other investments are not subject to changes in healthcare policy or medical demand.
Get relevant advice and insights to help you make smart investment decisions, thanks to J's experience. A REIT (pronounced reet), or Real Estate Investment Trust, is a unique type of company that allows investors to pool their money to invest in real estate assets. Once you have invested in one, you will have to wait until the REIT lists its shares on a public exchange or liquidates its assets before you can access your money, according to the Securities and Exchange Commission (although early withdrawal offers can be made, but will depend on the terms of the REIT in which you have invested). Investors own REITs through their retirement savings and other mutual funds, according to Nareit, a Washington, D.
According to the SEC, a REIT must invest at least 75 per cent of its assets in real estate and cash, and derive at least 75 per cent of its gross income from sources such as rent and mortgage interest. Nareit is the global representative voice for REITs and real estate companies with interests in the U.S. Real estate investment trusts, or REITs, can be a fantastic way to add growth and income to your overall portfolio while adding diversification. The federal government made it possible for investors to buy large-scale commercial real estate projects as early as 1960.