Investing in REITs: Real Estate Investment Trusts, 4th Edition

Summary

• The shares of growth REITs might appreciate quickly during certain time periods, and tend to trade at lower dividend yields; but because of their aggressive business strategies and high shareholder expectations, there's more risk in owning them.
• Shares of value, or turnaround, REITs often bear high dividend yields and have a higher risk factor. Sometimes they do manage to turn themselves around and appreciate in value, but these REITs must be watched closely, as it's difficult to know whether the perceived problems will be resolved.
• Bond-proxy REITs provide high dividend yields—in the range of 6 to 7 percent—but they have less well-defined growth prospects compared with other REITs. It's a trade-off.
• Blue-chip REIT stocks may appear ...