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The shares of REITs may be listed and traded on public stock exchanges, registered but not publicly traded, or owned privately. REITs typically operate within two approaches: Equity REITs and Mortgage REITs.

 

Equity REITs earn income by collecting rent or through the sale of the properties they own.

 

Mortgage REITs generate revenue from interest earned on their investments in mortgages or mortgage-backed securities.

Featured REIT Projects

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Assembly Row

Just three miles away from Boston's financial district, Federal Realty Investment Trust's Assembly Row in Somerville, Massachusetts, sits on land once occupied by brownfields and decaying industrial buildings. The mixed-use development, which includes an assortment of retail, dining, entertainment, office and residential spaces, is credited with helping to transform the local economy. Federal Realty's commitment to the project included significant investment in environmental remediation and new infrastructure to serve the site.

Manzanita Hall at Arizona State University

On-campus living has come a long way from what many of us experienced during college, thanks in part to student housing REITs. In 2013, American Campus Communities redeveloped a 45-year old Arizona State University campus icon, Manzanita Hall, honoring the residence hall’s original mid-century aesthetic value while providing modern student living accommodations. The on-campus residence, originally built in 1967, includes 241 units accommodating 816 students.

The Yards

Forest City Realty Trust has helped turn 48 acres of abandoned government industrial facilities into a vibrant community in southeast Washington, D.C., complete with a diverse set of local merchants, unique office facilities and newly constructed apartments and condos. Situated next to the Washington Navy Yard along the banks of the Anacostia River, the development project, known as The Yards, has played a part in growing the economic activity in the area and the creation of hundreds of jobs.

REIT SectorsHover below to learn more

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Benefits of Investing in REITs*Select below to learn more

REITs have historically provided:

  • Low correlation with other stocks and bonds
  • Higher risk-adjusted returns
  • An investment in real, tangible assets

REITs have historically provided:

  • Ability to buy/sell like other stocks, mutual funds and ETFs
  • Opportunities for tactical asset allocation
  • Easy portfolio rebalancing

REITs have historically provided:

  • Corporate governance aligned with shareholders interests
  • Audited financial reports

REITs have historically provided:

  • Dividends & wealth accumulation
  • Regular income from rents
  • Reduced portfolio volatility

REITs have historically provided:

  • Total returns above the S&P 500 over the past 25 years
  • Higher returns than corporate bonds
*Past performance does not guarentee future results. Information should not be construed as investment advice and is for informational purposes only. Source: 2

REITs allow anyone to invest in portfolios of large-scale properties the same way they invest in other industries – through the purchase of stock. In the same way shareholders benefit by owning stocks in other corporations, the stockholders of a REIT earn a share of the income produced through real estate investment – without actually having to go out and buy or finance property.