Real estate investment trust, Also known as “Real Estate Investment Trust”, English is Real Estate Investment Trusts, Abbreviation Reits The company that refers to the profit of real estate investment.The investment projects of this kind of company mainly include lease their real estate leases to obtain rent or loans to individuals or commercial purchase of real estate to collect interest, or buy real estate by buying real estate Mortgage securities(Mortgage-Backed Security, referred to as MBS) and obtained benefits.
If the company wants to be a real estate investment trust, it must be satisfied U.S.Taxation Agency(( IRS) The standard for formulating, for example, the company must return at least 90% of the income to shareholders each year, and invest at least 75% of total assets in the form of real estate or save cash.At the same time, at least 75%Investment in real estate.
REITs can enjoy a certain tax convenience.The company does not have to pay the company’s taxation at the company level.Therefore, such companies can raise funds for real estate at a lower cost than non -REITs.Therefore, REITs can continue to appreciate and pay more dividends.
Most real estate investment trusts are listed on the stock exchange, and investors can invest in these real estate investment trusts through REITS stocks, REITS ETFs, or REITS Kyrgyzstan Fund.Investors can use similar real estate to the premise of unrealistic purchase of real estate, with similarly similar to similar real estate, similarIn the high liquidity of stock transactions, invest in real estate to gain benefits.There are also some non-listed REITs and private equity REITs.You need to invest in special channels.
Currently in the United States, about 145 million Americans use 401 K accounts, IRA account Invest in REITs.
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Directory of this article
- What are the types of real estate investment trusts?
- How to invest in real estate investment trusts?
- The advantages and disadvantages of real estate trust investment?
What are the types of real estate investment trusts?
Real estate investment trusts are mainly divided into three categories:
- Equity REITs
- MRITS (MREITS) mortgage real estate investment trust
- And Hybrid Reist (Hybrid Reist)
| Types of real estate investment trust | REITS Features | REITS operation and profit method |
|---|---|---|
Equity Real Estate Trust Fund Equity reits | Real estate investment trust has real estate and rent real estate; This is the largest number of real estate trust funds; Relatively most stable types; | Rental rents for rental real estate |
Mortgage Real Estate Trust Fund Mortgage REITs (MREITS) | Provide funds to individuals or business through mortgage or loans to obtain interest; Investment income is obtained by purchasing real estate mortgage securities (MBS). | Interests of mortgage loans and the income of investing in MBS |
Hybrid real estate trust fund Hybrid reits | It is a combination of Equity Reits and MREITs. | Rental rents for rental real estate; Interests of mortgage loans and the income of investing in MBS. |
Among them, real estate operated by equity real estate trust includes various types, such as offices, apartment buildings, warehouses, retail buildings, medical facilities buildings, data centers, mobile base stations, infrastructure, and hotel buildings.
Can be divided by whether REITS can be disclosed
| Types of real estate investment trust | Transaction Type | Characteristic |
|---|---|---|
Publicly traded real estate investment trust Publicly Traded REITs | Listing and transactions on the market of the Nasdaq Stock Exchange, the New York Stock Exchange and other certificates; All individual investors can invest in transaction; Supervised by the US Securities and Exchange Commission; Most REITs belong to this category; | Trading liquidity is the strongest; The most affected by market fluctuations; |
Public, non-listed real estate investment trust Public Non-Listen REITs (PNLRS) | Register at the US Securities and Exchange Commission and provide audited financial information; Not listed on the public market; Open all investors, but investors need to purchase open non-listed real estate trust funds through financial consultants or real estate crowdfunding platforms; | The liquidity is lower than the public trading real estate trust fund; Relatively stable than the public transaction real estate trust, because it is not affected by market fluctuations; |
Private Real Estate Investment Trust Private Reits | No need to register at the US Securities and Exchange Commission; Not listed on the public market; It is mainly sold to institutional investors, high-income or high net worth individuals; | Not in the open market transaction |
Divided by the type of real estate focusing on REITs
According to the types of real estate focusing on REITs, they can be divided into the following categories:
| Types of real estate investment trust | Iconic assets |
|---|---|
Office real estate Office REITS | Skyscraper and office park |
Industrial real estate IndustRial REITs | Warehouse, distribution center, light industry or refrigerated library |
Retail real estate Retail Reits | Regional shopping malls, shopping malls or independent retail buildings |
Tourism Hotel Real Estate HOSPITALITY REITs | Hotels and Resort |
Residential real estate Residential REITs | Apartment community, single-house houses and artificial residential parks |
Forestry real estate Timberland Reits | woodland |
Healthcare real estate Healthcare reits | Advanced living facilities, hospitals, medical office buildings and professional care facilities |
Self-service warehousing real estate Self-Storage Reits | Individual and enterprise self-service storage facilities |
Infrastructure real estate Infrastructure REITs | Optical cable, telecommunications tower and energy pipeline |
Data Center Real Estate Data Center REITs | Data storage facilities and space in it |
How to invest in real estate investment trusts?
For the Public Traded REITs for public transactions, you mainly have three investment methods:
- Direct investment of REITs stock
- Investment REIT ETF
- Investment REIT Mutual Fund
Therefore, for the real estate investment trust that trades publicly, you can invest in REITS shares by the merchant who can open a personal investment account, REITS common funds, or REITS ETF.
Here are a few common REITS ETFs:
| REITS ETF Name | ETF code | ETF detailed |
|---|---|---|
Vanguard Real Estate etf | VNQ | Management of more than $ 40 billion in assets, daily transaction volume reached more than 600 million US dollars, and nearly 170 asset portfolios, covering multiple types of real estate types from warehouses, shopping malls to medical care; The cost ratio is 0.12%; A dividend yield (TTM) is 2.9%; |
Charles Schwab U.S.Reit ETF | Schh | This ETF manages more than $ 6 billion in assets, and nearly 140 real estate stocks that have been traded publicly are mainly mortgaged real estate trust funds; The cost ratio is 0.07%; A dividend yield (TTM) is 1.7%; |
Real Estate Select Sector SPDR FUND | Xlre | This ETF manages more than $ 5 billion in assets and about 30 asset portfolios, covering the warehouse giant warehouse giant Prologis Inc.(PLD), telecommunications tower operator America Tower Corp.(AMT), and self-service storage giant Public Storage Inc.(PSA).Items The cost ratio is 0.1%; TTM dividend yield (TTM) is 2.7% |
Ishares Mortgage Real Estate ETF | ReM | Management of more than $ 800 million in assets mainly includes mortgage real estate trust funds, with a number of about 30, including Annaly Capital Management Inc.(Nly) and Starwood Property Trust Inc.(STWD); The cost ratio is 0.48%; TTM dividend yield (TTM) is 7%; |
Pacer Benchmark Data & Infrastruction Real Estate SCTR ETF | SRVR | This ETF has more than $ 1 billion in assets, mainly focused on infrastructure real estate related to digital information, such as Equinix Inc.(EQIX) and Digital Realty Trust Inc.(DLR), etc.;; The cost ratio is 0.6%; TTM dividend yield (TTM) is 1%; |
Vanguard Global Ex-US Real Estate ETF | Vnqi | This ETF management exceeds $ 4 billion in assets, mainly consisting of about 700 stocks, covering a number of real estate investment trusts outside the United States, of which about 27%of the European markets, about 21%of the Japanese market, and emerging countries markets.It accounts for about 18%; The cost ratio is 0.12%; TTM dividend yield (TTM) is 7.2%; |
Invesco S & P 500 Equal Weight Real Estate ETF | Ewre | This ETF management is about $ 150 million in assets, mainly consisting of 30 stocks, involving a variety of real estate types to help investors invest in a wider market; The cost ratio is 0.4%; TTM dividend yield (TTM) is 2.4%; |
The advantages and disadvantages of real estate trust investment?
Real estate trust is invested in other financial products and has its own investment advantage and disadvantage.
advantage
- Real estate credit investment trusts provide stable long-term dividend returns;
- Compared with stock investment, REIT can usually pay a dividend yield higher than the average level;
- Based on the rigid advantage of real estate, the investment has the potential to increase the value of long-term capital;
- All investors who can open a personal financial investment account can be in the open market, as simple as stock transactions to conduct real estate trust investment transactions, without having to hold real estate physical assets;
- The return of listed real estate trust stocks is less correlated with other stocks or fixed income investment, so it is a good investment portfolio diversified tool;
- REIT, which is publicly listed and traded, is supervised by the US Securities and Exchange Commission.Therefore, trading information and data are highly transparent to ensure investors’ funds;
Disadvantage
- REIT’s dividend income, as a personal fixed asset, needs to pay taxes;
- Investing in REIT may require a high management fee and transaction fee;
- When investing in the mortgage real estate trust fund, it is more sensitive to changes in market interest rates;