Investing In Real Estate Investment Trusts

Overview: Article discusses the investment performance in turbulent market. It states that in last few years of negative returns, real estate investment trusts (REITs) are outperforming most other sectors of domestic equity markets. It discusses the factors help to explain why the stocks of REITs and other publicly traded real estate companies are performing well in 2000. These factors include stabilized earnings growth, a well-balanced real estate economy, increased stock price volatility, and good value. It discusses the long-term performance of REITs as REITs and other publicly traded real estate companies are total return investments that provide high dividends plus the potential for moderate, long-term capital appreciation. Investors look to high dividend paying stocks both to provide income and to reduce the month-to-month changes in the value of their investment portfolios that come from stocks that are more volatile. It focuses on the benefits of investing in REITs, as Investing in commercial properties requires financial resources that go beyond those of most individual investors. It states that, Congress created REITs in 1960 to provide small investors with opportunities to participate in the investment returns available from large-scale, income producing real estate. Like other investments, REITs and other publicly traded real estate companies are properly evaluated by looking at both their benefits and their risks.

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Format: PDF | Size: 580KB | Date: Nov 2000 | Pages: 24