Packaged Securities - Real Estate Investment Trusts (REITS)

This discussion of packaged securities will end with a brief description of REITs - companies that buy, develop, manage and sell real estate assets. They allow participants to invest in a professionally-managed portfolio of properties.

What Are REITs?
REITs are similar to mutual funds, except the assets they buy are land and buildings rather than stocks and bonds. Also like mutual funds, REITs are pass-through entities which, in congruence with conduit theory, distribute the majority of income cash flows to investors without taxation at the corporate level.

The most tangible benefit of a REIT is liquidity. It is much easier to trade in shares of an investment company than to trade in actual bricks and mortar. Like closed-end funds, most REITs are traded on major exchanges.

The following articles on REITs will discuss the types of REITs, how to analyze them, their advantages, and how to pick the right REIT:

Introduction


Related Articles
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    REITs vs. REIT ETFs: How They Compare

    Learn about the difference in investing in a REIT for a single real estate company versus investing in a REIT ETF that tracks a larger REIT index.
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    REITs: Still a Viable Investment?

    Are REITs viable investments now? Here's a look at the history of REITs' performance during rocky economic times and other factors that may impact returns.
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    Are REITs Beneficial During A High-Interest Era?

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    REITs Could be Affected by Higher Interest Rates

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  1. Real Estate Investment Trust - ...

    A REIT is a type of security that invests in real estate through ...
  2. REIT ETF

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  4. Funds From Operations Per Share ...

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  5. Funds Available For Distribution ...

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  6. Non-Traded REIT

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RELATED FAQS
  1. What is the difference between a REIT and a real estate fund?

  2. What are the pros and cons of owning an equity REIT versus a mortgage REIT? (AEC, ...

    Learn about investing in equity, mortgage and hybrid REITs. Explore the different strategies REITs employ to generate income ... Read Answer >>
  3. Can mutual funds invest in REITs?

    Learn about mutual funds that invest in real estate investment trusts and have their shares traded on major U.S. stock exchanges ... Read Answer >>
  4. What are the potential pitfalls of owning REITs?

    Learn about pitfalls to investing in REITs, such as investors having to pay income tax, the REIT having to pay property tax ... Read Answer >>
  5. What is the difference between an Equity REIT and a Mortgage REIT?

    Find out more about real estate investment trusts and the main differences between equity and mortgage real estate investment ... Read Answer >>
  6. Is NAV the best way to assess the value of an REIT?

    Examine and understand the usefulness of net asset value as an accurate metric with which to assess the value of a REIT investment. Read Answer >>
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