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
  1. Financial Advisor

    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.
  2. Investing

    What To Expect From REITs In 2014

    While REITs will face a number of challenges in 2014, one particular issue will be the focus of investors: rising interest rates.
  3. Investing

    What Is a REIT and Does It Belong in My Portfolio?

    Real estate investment trusts offer a unique way for investors to own a real estate portfolio without the risks of owning single properties.
  4. Investing

    REITs Could be Affected by Higher Interest Rates

    Learn how REITs may be impacted by an increase in interest rates, and understand why certain types of REITs could benefit from higher rates.
  5. Investing

    REITs 101: How They're Regulated

    Here's everything you need to know about REITs in less than five minutes.
  6. Investing

    Why REITs Remain A Great Place To Put Your Money

    REITs have been a good investment over the long haul. Here's Why.
  7. Investing

    How To Analyze Real Estate Investment Trusts

    REITs are much like dividend-paying companies, but analyzing them requires consideration of the accounting treatment of property.
  8. Investing

    What Investors Can Expect from REITs in the New Year

    REITs have been hit hard over the past couple of months. Here's why, and what to look for next.
  9. Investing

    The Basics of Reinvesting REIT Dividends

    Learn the essentials of dividend reinvestment in real estate investment trusts and how a dividend reinvestment plan can magnify your long-term returns.
Frequently Asked Questions
  1. What's considered to be a good debt-to-income (DTI) ratio?

    Your debt-to-income ratio helps lenders determine your credit worthiness. Find out how to calculate your score and how to ...
  2. What is the difference between a loan and a line of credit?

    Learn to differentiate between lines of credit and standard loans, and determine when you are likely to use each method of ...
  3. What does a Chief Financial Officer (CFO) do?

    A CFO is responsible for accurate reporting of a company's financial information, investing the company's money and identifying ...
  4. How did George Soros break the Bank of England?

    George Soros pocketed $1 billion by betting against the British pound, cementing his reputation as the premier currency speculator ...
Trading Center