Talk to an Advisor

What Are The Different Types Of REITs?

REITs, or Real Estate Investment Trusts, are companies that own or finance income-producing real estate, such as office buildings, apartment complexes, shopping centers, and hotels. There are several types of REITs, including:

  1. Equity REITs: These REITs own and operate income-generating real estate properties, such as office buildings, apartment complexes, and shopping centers. They generate income by renting out these properties to tenants and distributing the rental income to their shareholders as dividends.
  2. Mortgage REITs: These REITs invest in mortgages or mortgage-backed securities, rather than owning physical real estate. They generate income by earning interest on their mortgage investments and distributing that income to shareholders.
  3. Hybrid REITs: These REITs combine both equity and mortgage REITs strategies, investing in both physical real estate properties and mortgages or mortgage-backed securities.
  4. Public Non-Traded REITs: These REITs are not publicly traded on stock exchanges, but rather offered to individual investors through broker-dealer networks. They invest in a variety of real estate properties and often have higher fees and longer lock-up periods than publicly traded REITs.
  5. Private REITs: These REITs are not registered with the SEC and are not publicly traded. They are typically offered only to institutional investors and have more flexibility in their investment strategies than publicly traded REITs.

It’s worth noting that some REITs may specialize in a particular type of real estate, such as healthcare facilities or industrial properties, while others may invest in a diverse range of properties.