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Real Estate Investment Trusts (REITS)

A real estate investment trust (REIT) is a company that owns, operates, or finances income-generating real estate. Similar to mutual funds, REITs pool capital of multiple investors to purchase investment properties, mortgages and other real estate assets. This page lists the 100 largest United States REITs by market cap. What is a REIT?

CompanyPE RatioMarket CapCurrent PricePrice ChangeVolumeAverage VolumeIndicator(s)
American Tower logo
AMT
American Tower
62.62$116.85 billion$267.39+1.4%1.80 million1.92 millionAnalyst Report
CROWN CASTLE IN/SH SH logo
CCI
CROWN CASTLE IN/SH SH
91.39$72.74 billion$174.56+0.0%1.92 million2.09 millionAnalyst Report
Prologis logo
PLD
Prologis
37.15$70.85 billion$97.32+1.9%2.93 million4.40 million
Equinix logo
EQIX
Equinix
115.99$61.02 billion$688.99-1.1%436,743582,479Analyst Report
Insider Selling
Analyst Revision
DIGITAL RLTY TR/SH logo
DLR
DIGITAL RLTY TR/SH
50.00$37.56 billion$139.49-0.4%1.63 million2.11 millionAnalyst Report
Public Storage logo
PSA
Public Storage
28.29$36.72 billion$207.96+0.1%1.19 million1.20 million
SBA Communications logo
SBAC
SBA Communications
N/A$35.52 billion$314.95-1.0%606,188848,856Analyst Report
Insider Selling
Equity Residential logo
EQR
Equity Residential
19.25$22.74 billion$60.46flat3.08 million2.48 million
AvalonBay Communities logo
AVB
AvalonBay Communities
28.35$22.34 billion$158.77flat1.48 million1.35 million
Welltower logo
WELL
Welltower
19.08$22.16 billion$58.97+7.6%3.95 million4.18 millionAnalyst Revision
Simon Property Group logo
SPG
Simon Property Group
11.28$19.74 billion$72.88+14.9%17.23 million5.80 millionHigh Trading Volume
Analyst Revision
Alexandria Real Estate Equities logo
ARE
Alexandria Real Estate Equities
73.09$19.56 billion$154.96flat687,300830,110Dividend Increase
Realty Income logo
O
Realty Income
41.21$19.43 billion$60.16+5.2%2.64 million3.37 million
Weyerhaeuser logo
WY
Weyerhaeuser
46.08$16.55 billion$22.12+1.9%4.16 million5.52 million
Essex Property Trust logo
ESS
Essex Property Trust
26.31$16.15 billion$253.06+2.5%379,230549,686Analyst Revision
Ventas logo
VTR
Ventas
19.32$15.19 billion$40.58+8.1%4.21 million4.50 millionAnalyst Revision
Boston Properties logo
BXP
Boston Properties
15.37$14.02 billion$90.21flat1.66 million2.06 millionUnusual Options Activity
Mid-America Apartment Communities logo
MAA
Mid-America Apartment Communities
43.40$13.44 billion$122.39+3.9%683,824832,005
Sun Communities logo
SUI
Sun Communities
113.79$13.14 billion$139.96flat1.01 million702,199Dividend Announcement
Unusual Options Activity
Heavy News Reporting
Duke Realty logo
DRE
Duke Realty
32.40$13.13 billion$35.64flat2.64 million3.02 million
Extra Space Storage logo
EXR
Extra Space Storage
30.74$12.93 billion$102.38+2.2%1.28 million1.20 million
HCP logo
HCP
HCP
14.33$12.10 billion$26.08+2.2%4.47 million2.80 million
Equity Lifestyle Properties logo
ELS
Equity Lifestyle Properties
49.12$11.48 billion$62.63flat1.09 million1.16 million
WP Carey logo
WPC
WP Carey
36.67$11.38 billion$64.18flat1.04 million972,220
UDR logo
UDR
UDR
68.47$11.13 billion$37.66flat1.83 million2.22 millionAnalyst Revision
Medical Properties Trust logo
MPW
Medical Properties Trust
24.21$10.08 billion$19.61+5.6%5.30 million4.78 million
VICI Properties logo
VICI
VICI Properties
24.36$9.65 billion$20.46flat6.04 million5.43 millionHeavy News Reporting
ANNALY CAP MGMT/SH logo
NLY
ANNALY CAP MGMT/SH
N/A$9.35 billion$6.52+4.5%27.68 million21.12 million
Camden Property Trust logo
CPT
Camden Property Trust
43.04$9.03 billion$96.84+4.5%855,138838,435
CyrusOne logo
CONE
CyrusOne
N/A$8.69 billion$74.77-0.9%1.13 million1.27 millionAnalyst Report
Insider Selling
Host Hotels and Resorts logo
HST
Host Hotels and Resorts
12.49$8.64 billion$12.61+2.7%12.06 million12.45 millionAnalyst Upgrade
SINO LD LTD/S logo
SNLAY
SINO LD LTD/S
N/A$8.36 billion$6.25+3.0%3241,295
American Homes 4 Rent logo
AMH
American Homes 4 Rent
88.32$7.97 billion$27.38+3.4%2.00 million2.28 millionAnalyst Report
Gaming and Leisure Properties logo
GLPI
Gaming and Leisure Properties
20.90$7.79 billion$38.24+7.0%3.82 million2.25 million
Regency Centers logo
REG
Regency Centers
12.41$7.77 billion$45.79flat1.47 million1.49 millionAnalyst Report
Iron Mountain logo
IRM
Iron Mountain
27.31$7.60 billion$28.40+6.3%4.39 million3.52 million
Vornado Realty Trust logo
VNO
Vornado Realty Trust
2.58$7.29 billion$39.51flat2.14 million2.39 millionAnalyst Revision
AGNC Investment logo
AGNC
AGNC Investment
N/A$7.27 billion$13.32+2.5%12.17 million10.51 million
Omega Healthcare Investors logo
OHI
Omega Healthcare Investors
19.38$7.17 billion$31.59flat1.19 million2.67 million
AmeriCold Realty Trust logo
COLD
AmeriCold Realty Trust
93.45$7.11 billion$35.51flat1.65 million1.90 million
Lamar Advertising logo
LAMR
Lamar Advertising
19.53$6.77 billion$70.10+6.5%886,506944,213Dividend Cut
Analyst Downgrade
Kilroy Realty logo
KRC
Kilroy Realty
34.10$6.74 billion$63.43+6.6%973,532966,977Unusual Options Activity
Federal Realty Investment Trust logo
FRT
Federal Realty Investment Trust
20.75$6.42 billion$93.60+6.0%798,223821,591Analyst Report
Heavy News Reporting
Vereit logo
VER
Vereit
N/A$6.41 billion$5.76flat12.41 million14.55 millionAnalyst Revision
National Retail Properties logo
NNN
National Retail Properties
25.03$6.04 billion$36.80+9.3%2.43 million1.59 million
KLPEF
Klepierre
N/A$5.98 billion$22.63flat6982,138
Healthcare Trust Of America logo
HTA
Healthcare Trust Of America
171.89$5.88 billion$27.50+2.2%1.50 million2.02 million
Apartment Investment and Management logo
AIV
Apartment Investment and Management
29.73$5.61 billion$40.14+6.5%1.20 million1.33 million
Store Capital logo
STOR
Store Capital
17.67$5.55 billion$22.80+9.8%5.15 million4.54 millionAnalyst Revision
CubeSmart logo
CUBE
CubeSmart
32.78$5.53 billion$29.50+3.2%1.21 million1.34 million
Douglas Emmett logo
DEI
Douglas Emmett
15.80$5.39 billion$32.54+5.9%1.02 million1.63 millionInsider Buying
Kimco Realty logo
KIM
Kimco Realty
18.53$5.18 billion$13.90+11.4%10.54 million7.02 millionAnalyst Report
American Campus Communities logo
ACC
American Campus Communities
36.50$4.87 billion$35.40flat2.60 million1.96 millionAnalyst Downgrade
First Industrial Realty Trust logo
FR
First Industrial Realty Trust
19.23$4.85 billion$38.66flat888,8001.07 million
Cousins Properties logo
CUZ
Cousins Properties
16.95$4.83 billion$32.54flat962,8001.35 million
CoreSite Realty logo
COR
CoreSite Realty
60.19$4.66 billion$119.77-2.6%412,326494,208Insider Selling
Rexford Industrial Realty logo
REXR
Rexford Industrial Realty
83.60$4.66 billion$40.13flat1.04 million868,131Analyst Downgrade
Life Storage logo
LSI
Life Storage
17.82$4.63 billion$99.25flat367,000420,410
Eastgroup Properties logo
EGP
Eastgroup Properties
36.26$4.49 billion$116.40flat368,500295,242
Healthcare Realty Trust logo
HR
Healthcare Realty Trust
110.25$4.17 billion$30.87flat1.38 million1.31 million
Stag Industrial logo
STAG
Stag Industrial
39.09$4.14 billion$27.75+1.5%1.21 million1.48 million
Highwoods Properties logo
HIW
Highwoods Properties
13.26$4.08 billion$40.05flat982,800953,831
Equity Commonwealth logo
EQC
Equity Commonwealth
5.97$4.08 billion$33.26flat1.30 million944,308
JBG SMITH Properties logo
JBGS
JBG SMITH Properties
53.42$4.04 billion$32.05+3.2%522,927698,894
Starwood Property Trust logo
STWD
Starwood Property Trust
12.36$3.92 billion$15.70+9.1%4.94 million4.34 millionAnalyst Downgrade
Heavy News Reporting
QTS Realty Trust logo
QTS
QTS Realty Trust
N/A$3.89 billion$64.40flat3.91 million788,267Analyst Report
High Trading Volume
MGM Growth Properties logo
MGP
MGM Growth Properties
88.58$3.71 billion$29.23+3.7%1.76 million2.12 millionAnalyst Downgrade
Brixmor Property Group logo
BRX
Brixmor Property Group
15.09$3.69 billion$13.73+10.3%4.56 million3.82 millionAnalyst Report
Heavy News Reporting
PS Business Parks logo
PSB
PS Business Parks
30.62$3.61 billion$138.10+2.1%101,593131,211Heavy News Reporting
Physicians Realty Trust logo
DOC
Physicians Realty Trust
44.05$3.58 billion$18.06+2.1%2.01 million5.22 million
Agree Realty logo
ADC
Agree Realty
33.78$3.49 billion$64.85flat326,200495,413Analyst Report
SL Green Realty logo
SLG
SL Green Realty
12.69$3.37 billion$51.15+8.1%2.69 million1.49 million
Blackstone Mortgage Trust logo
BXMT
Blackstone Mortgage Trust
18.20$3.33 billion$24.57flat940,9001.70 million
New Residential Investment logo
NRZ
New Residential Investment
N/A$3.29 billion$7.88+6.2%9.59 million11.39 millionAnalyst Downgrade
Analyst Revision
Rayonier logo
RYN
Rayonier
53.31$3.10 billion$24.52+1.8%556,196824,328
Great Portland Estates logo
GPEAF
Great Portland Estates
N/A$2.96 billion$8.94+2.1%226,410116,533
Sabra Health Care REIT logo
SBRA
Sabra Health Care REIT
15.01$2.91 billion$14.26flat2.03 million2.72 million
Corporate Office Properties Trust logo
OFC
Corporate Office Properties Trust
15.61$2.87 billion$27.01+3.8%793,950843,923Analyst Downgrade
Howard Hughes logo
HHC
Howard Hughes
N/A$2.83 billion$58.66+8.4%6.45 million495,406Analyst Downgrade
High Trading Volume
KREVF
Keppel REIT
N/A$2.79 billion$0.83+6.4%1,1001,586
EPR Properties logo
EPR
EPR Properties
19.04$2.67 billion$36.93+7.3%1.41 million1.69 million
Weingarten Realty Investors logo
WRI
Weingarten Realty Investors
8.58$2.56 billion$21.10+5.6%1.68 million1.30 millionAnalyst Report
Taubman Centers logo
TCO
Taubman Centers
12.35$2.56 billion$41.51flat3.61 million2.68 millionAnalyst Upgrade
Analyst Revision
National Health Investors logo
NHI
National Health Investors
14.62$2.53 billion$61.53+5.9%360,172387,654
Lexington Realty Trust logo
LXP
Lexington Realty Trust
9.79$2.50 billion$10.48+5.3%1.94 million2.28 million
Apple Hospitality REIT logo
APLE
Apple Hospitality REIT
18.73$2.47 billion$11.05flat2.81 million3.40 millionAnalyst Report
Potlatchdeltic logo
PCH
Potlatchdeltic
75.94$2.34 billion$35.69flat331,300444,158Analyst Upgrade
Hannon Armstrong Sustnbl Infrstr Cap logo
HASI
Hannon Armstrong Sustnbl Infrstr Cap
23.23$2.26 billion$30.43+4.9%610,963881,031
Outfront Media logo
OUT
Outfront Media
14.92$2.10 billion$14.47flat1.77 million2.30 million
National Storage Affiliates Trust logo
NSA
National Storage Affiliates Trust
N/A$2.08 billion$31.03flat662,400436,714
Ryman Hospitality Properties logo
RHP
Ryman Hospitality Properties
26.97$1.96 billion$37.22flat958,600895,303Analyst Upgrade
Easterly Government Properties logo
DEA
Easterly Government Properties
197.32$1.93 billion$25.65flat660,000794,912
Washington Real Estate Investment Trust logo
WRE
Washington Real Estate Investment Trust
4.59$1.89 billion$22.23flat344,200536,736
Pebblebrook Hotel Trust logo
PEB
Pebblebrook Hotel Trust
16.32$1.84 billion$14.85+5.7%2.67 million2.83 millionAnalyst Report
Caretrust REIT logo
CTRE
Caretrust REIT
37.83$1.82 billion$19.67+3.7%798,017744,044
Safestore logo
SFSHF
Safestore
N/A$1.79 billion$8.85+4.0%240525
Paramount Group logo
PGRE
Paramount Group
N/A$1.78 billion$8.25flat3.91 million2.14 million
Brandywine Realty Trust logo
BDN
Brandywine Realty Trust
52.24$1.74 billion$10.97+7.2%1.73 million2.20 million
RLJ Lodging Trust logo
RLJ
RLJ Lodging Trust
42.56$1.72 billion$11.49+9.6%2.21 million2.63 millionAnalyst Upgrade
Uniti Group logo
UNIT
Uniti Group
N/A$1.72 billion$8.92+1.4%1.64 million2.89 millionAnalyst Upgrade
Unusual Options Activity
Last Updated: Thursday, 05:12 AM ET. Prices are 15-minutes delayed.

Summary - For investors who are looking to get the benefits of investing in real estate without owning property, a real estate investment trust (REIT) is an attractive option. And by combining the popularity of exchange-traded funds (ETFs) with an investment in REIT stocks, investors can get the benefits of REIT stocks with much lower risk. With a REIT ETF, investors can own a diverse group of properties inside of a fund that is traded in the same way that they would buy and sell shares on a stock exchange. REIT ETF investors also benefit from the high dividend yields that REIT ETFs generate.

For a company to be considered a REIT, they have to meet many specific requirements. These requirements, which were established by Congress when they created the concept of a REIT in 1960, help ensure that investors can maximize the income generating aspect of a REIT.

Like any ETF investors should pay close attention to the ETF’s prospectus for information regarding who manages the fund, the fees, and expenses associated with the fund, whether the fund is actively or passively managed, and the overall investment philosophy of the fund before deciding whether to invest. A REIT ETF carries the same risks, although perhaps moderated, as other real estate investments. The most notable threat to the profitability of an ETF is rising interest rates.

Introduction

Part of the grown-up humor in the children’s classic A Charlie Brown Christmas is when Lucy tells Charlie Brown that she never gets what she really wants for Christmas. When Charlie Brown asks Lucy what that something is, she replies “real estate”.

Investors have long understood the value of real estate as an investment vehicle. However, property ownership was, and in some cases still is, a barrier of entry for all but institutional investors. That was one of the reasons Congress established the concept of a real estate investment trust (REIT) that would give individual investors an opportunity to invest in real estate without owning residential or commercial real estate. Just like the housing market, a REIT can be subject to the volatility of the stock market. However, REITs have several rules in place that make them an attractive investment option. When you combine those rules with the benefits of an exchange-traded fund (ETF), REITs can be an attractive alternative for income-oriented investors in any market.

In this article, we’ll look at REIT ETFs as an investment decision. For those investors who are unfamiliar with what REITs are, we’ll define what a REIT is as well as look at give a basic overview of what an ETF is. As the article goes on, we’ll put the two together to show why a REIT ETF can give investors the advantages of investing in real estate with less risk.

What is a Real Estate Investment Trust (REIT)?

In 1960, Congress established a financial product that would allow individual investors to invest in real estate without having to buy or finance property. A Real Estate Investment Trust (or REIT) is made up of a number of real estate companies that own a portfolio of income-producing real estate assets. Investing in a REIT allows these investors to earn a share of the income that these assets produce.

Real estate investment trusts are divided into two categories: equity REITs and mortgage REITs.

  • Equity REITs invest in a variety of commercial properties such as offices, shopping malls, apartments, and hotels. The primary income source for these REITs comes through the income they receive from rent. Equity REITs currently make up the majority of the REIT market with more than $2 trillion of assets under management. Avalon Bay Communities (NYSE: AVB) is an example of an equity REIT.
  • Mortgage REITs, by contrast, are composed of more residential than commercial properties and most of their income is derived from mortgages and mortgage-backed securities. Mortgage REITs (or mREITs) profit from the spread between the interest rates they earn from their mortgage loans and the rates they are changed for their short-term borrowing. For example, let's look at a mortgage REIT that purchases a 15-year mortgage that pays them 3% interest per year. If their short-term borrowing cost is 2% per year than they will have a difference or spread of 1% that represents their profit. New York Mortgage Trust (NASDAQ: NYMT) is an example of a mortgage REIT.

REITs can be publicly listed and publicly traded in the stock market, publicly listed (but not publicly traded), or privately listed. REITs must follow specific rules that make them an attractive investment. To begin with, REITs are modeled after mutual funds in the sense that every REIT contains a “basket” of properties. The Internal Revenue Service (IRS) treats a REIT like a corporation. Shares in a REIT must be widely held by shareholders and the REIT itself must primarily own or finance real estate. In addition, their real estate holding must have a long-term investment outlook.

Some additional rules that govern REITs include:

  • At least 75% of their income must be earned from real estate as rent, interest, or the sale of real estate assets.
  • At least 75% of their assets must be in real estate.
  • At least 95% of their income must be passive.
  • At least 90% of their taxable income must be distributed to shareholders as dividends (a REIT has no retained earnings). All dividends are taxed at ordinary rates.

What are the benefits of investing in REITs?

Dividend income– Because of the rules that govern REITs, investors are assured of a dividend payout that is higher in proportion to other stocks. Financial advisors will often recommend a REIT to their income-oriented clients because the dividend yields have historically been higher than stocks on the S&P 500 index. 

Diversification – REITs have a historically low correlation with other asset classes like stocks and bonds. This means that when stocks and bonds are undergoing a correction, REITs generally may do well. However, to maximize the benefits of diversification, investors should look to invest in a variety of REITs so as to get diversification not only between asset classes but also within an asset class.

Inflation Hedging– Equity REITs, in particular, have demonstrated an ability to generate increased revenue – from rent for example – even during periods when inflation is on the rise. This means that investors who are looking for an income that will provide reliable income that can help sustain a longer retirement timeline.

Total Return Performance– In addition to issuing regular dividends, REITs have a proven history of long-term capital appreciation. In fact, over the past half-century, REITs have outperformed the broader stock market as well as other assets.

Liquidity and Transparency– Because they are traded on stock exchanges, REITs offer the same liquidity as other stocks. And because those that are publicly traded are registered and regulated by the SEC, investors are assured that the companies are subject to the SEC standards for corporate governance, financial reporting, and information disclosure. 

What is an exchange-traded fund (ETF)?

An exchange-traded fund (ETF) is one of many financial products that serve as a vehicle for investing in REITs. In contrast to a mutual fund which reconciles share price once a day based on the fund’s closing price, shares of an ETF trade like a common stock on an exchange, meaning the market price will go up or down throughout a trading session as shares are bought and sold. An ETF generally trades with a higher daily volume than a mutual fund and has lower fees and expenses which can make them more attractive for investors. Like a publicly traded company that sells shares on a stock exchange, a company that manages an ETF is required to disclose information about the fund to the public.

Putting it all together, the REIT ETF

A REIT ETF is an exchange-traded fund that is exclusive to REIT stocks. As an investor, REIT funds are an ideal vehicle to use a low-cost investment vehicle to gain exposure to a diverse range of properties. As with any investment, investors should take care to perform their due diligence before deciding to invest money in a REIT ETF.

  • Know who manages the ETF– in many cases, REIT ETFs are issued by well-known investment firms that have earned the trust of investors. However, as ETFs have become increasingly popular, there are more companies that are ETFs being created. Just because a company is not well-known does not make it a bad investment, it just means that investors may have to perform more research before making an investment.
  • Know the fee structure– Although most ETFs charge lower fees and expenses than a mutual fund there are exceptions. The best way to compare the fees and expenses of an ETF is similar to how you would compare any asset class. Look at the prospectus of the REIT you are considering along with the prospectus of REIT ETFs that share a similar portfolio of assets.
  • Know your risk tolerance– REIT ETFs help manage the risk that can come from owning real estate. They cannot, however, eliminate all risk. As should be expected, REIT ETFs are subject to the same market forces that affect the real estate market. They are extremely sensitive to interest rates as well as employment rates.

How to have success with a REIT ETF

There are currently more than 200 REIT ETFs for investors to choose from. REIT ETFs are beginning to figure prominently in the 401(k) plans. However, like other investment vehicles, not all ETFs are the same. To have success, investors should understand what the investment philosophy of the ETF is and match that to their personal risk tolerance. Like any mutual fund, portfolio managers can get very niche driven which can add more risk to the ETF that investors are comfortable with. You should also be sure to know if the fund is actively managed or passively managed. In an actively managed ETF, a portfolio manager selects the REIT stocks that make up the fund and will actively buy and sell stocks to generate a higher total return. In a passively managed fund, the portfolio manager seeks stocks that track an index. The Financial Times Stock Exchange (FTSE) Nareit Index tracks the performance of the U.S. REIT industry and the Global REIT market.

Finally, investors should look for diversification. This means looking at U.S. REIT ETFs as well as the global REIT ETF market.

The bottom line on REIT ETFs

One of the most important strategies for investment success is the ability to profit in any market condition. For income investors, a REIT EFT can help produce regular and predictable income even in times of low-interest rates. A REIT ETF provides the ability for investors to gain exposure to and profit in the real estate market without owning property. Owning shares of a REIT ETF is similar to buying shares of a REIT stock with the exception that investors have more diversification because they are purchasing a basket of companies rather than tying their investment to a specific REIT stock.

One of the most important benefits of a REIT ETF is regular dividend distributions along with some capital appreciation that can lead to a total return that, while not as high as if the investor owned the underlying properties comes with significantly lower risk. Like the real estate market in general, REIT ETFs can be sensitive to fluctuations in interest rates.

 



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