Summary

  • REITs own real estate, but when you buy a REIT, you're not just buying real estate—you're also buying a business run by an experienced management team.
  • REITs' total returns, over reasonably long time periods, have been very competitive with those provided by the broader market.
  • The vast majority of REITs offer the liquidity provided by public equities markets.
  • REITs provide diversification to your portfolio because their price movements, during most periods, are not highly correlated with the rest of the market.
  • REITs' higher current yields frequently act as a shock absorber against daily market fluctuations.
  • Analysts who follow REITs are normally able to forecast quarterly results within one or two cents, quarter after quarter, year ...

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