What are REITs?

REITs, or real estate investment trusts, are companies that own or finance income-producing real estate across a range of property sectors. These real estate companies have to meet a number of requirements to qualify as REITs. Most REITs trade on major stock exchanges, and they offer a number of benefits to investors. Video Player is loading.

What is a real estate investment trust (REIT)?

Real Estate Investment Trusts are corporations that own and manage real estate. REITs issue units (much like stock shares) that give investors access to the income generated by the REIT’s property portfolio.

What are hybrid REITs and how do they work?

Hybrid REITs: Hybrid REITs are a combination of both equity and mortgage REITs. These businesses own and operate real estate properties as well as own commercial property mortgages in their portfolio. Be sure to read the REIT prospectus to understand its primary focus. » Which is better?

Are REITs a good investment for diversification?

The most reliable REITs have a track record of paying large and growing dividends for decades. High returns: As noted above, returns from REITs can outperform equity indexes, which is another reason they are an attractive option for portfolio diversification.