Real Estate Investment Trust (REIT) – A legal entity that uses pooled investor capital to purchase and manage income property or mortgage loans. Most REITs operate using a straight forward business model by leasing space and collecting rent on its real estate in order to generate income which is then paid out to shareholders in the form of dividends. To qualify as a REIT, the entity must distribute at least 90.0% of taxable income.
The two main types of REITs are equity REITs and mortgage REITs (mREITs), which are mostly traded on major stock exchanges, but there are also public non-listed and private REITs.
A company that owns or operates income-producing real estate.
Mortgage REITs provide financing for income-producing real estate by purchasing or originating mortgages and mortgage-backed securities and earning income from the interest on these investments.
Public Non-Listed REITs
PLNRs are registered with the SEC but do not trade on national stock exchanges.
Private REITs are offerings that are exempt from SEC registration and whose shares do not trade on national stock exchanges.
Majority of REITs fall within these types of real estate property types: residential, retail, office, industrial, healthcare, self-storage, specialty, data center, timberland, infrastructure, and lodging (hotels and resorts) REITs. The REIT companies will manage and rent out to tenants their real estate investments.
Real Estate Sales & Brokerage in the US
Operators in this industry primarily act as intermediaries during various real estate transactions, including buying, selling and renting real estate.
Apartment/Offices/Retail Centers/Hotel Rental and Management
Operators in this industry primarily act as lessors of multiunit buildings used as residences or dwellings, such as apartment complexes, retirement villages, malls, hotels, and mix-use properties and townhomes.
Timberland Real Estate
Operators in this industry harvest and sell timber.
Mutual Funds – Operators in this industry manage a portfolio of stocks and/or bonds like REITs do with real estate. Income for investors is earned from dividends and capital gains.
Charlie Izaguirre contributed to this report. For a detailed list of sources, click here.