Real Estate Investment Trusts in the US

A trustworthy investment

Real estate investment trusts (REITs) provide an opportunity for individual investors to own real estate that otherwise would be too expensive. As a result, the demand for and growth of the industry is often associated with the general health of the real estate sector. The industry has benefited from the real estate bubble that developed prior to the subprime mortgage crisis, and revenue has remained steady since 2007 as leases and other long-term contracts have been able to maintain REIT revenue streams.

The industry is comprised of legal entities that are categorized as real estate investment trusts (REITs). To qualify as an REIT, a company or trust must distribute at least 90.0% of taxable income to shareholders annually in the form of dividends. REITs use the pooled capital of many investors to directly invest in income-producing property. Income is mainly generated from rent, interest and capital gains. There are three types of REIT funds: equity, mortgage and hybrid.

This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.