Real estate investment trusts (REITs) offer liquid exposure to commercial real estate with dividend yields and potential appreciation. Understanding REIT structures helps investors evaluate opportunities.
REIT Types
- Equity REITs: Own and operate properties
- Mortgage REITs: Invest in real estate debt
- Public REITs: Traded on stock exchanges
- Private REITs: Non-traded with different liquidity
Investment Considerations
REITs provide diversification, liquidity, and professional management. Sector and geographic focus, leverage levels, and management quality differentiate performance.