Real Estate REIT’s


     Many dream to own real estate, whether it be a property for rental income, a second home, store front, a hotel, shopping mall, or office building complex. But, having collateral and upfront funds to invest, develop, and manage is not an easy task. Adding liquid Real Estate or REIT’s to your investment portfolio allows you to own part of a shopping mall, hotels, commercial office space, or even apartment rental complexes while diversifying your investment portfolio! So, what is an REIT and how do you choose one to invest in?

     REIT stands for Real Estate Investment Trust. An REIT is a type of investment comparable to a mutual fund. Small and large investors can now own a small part of a real estate venture and even technically collect rental income! There are two types of REIT’s: Equity REIT’s and Mortgage REIT’s. Equity REIT’s generate income by collection of rent, and from sales of properties that are owned long term. Mortgage REIT’s invest in mortgage securities from commercial and/or residential properties. REIT’s usually pay out as taxable income generated by the property to shareholder’s in the funds dividends. The shareholder pays taxes on those quarterly dividends they receive. Owning shares in a REIT can be rewarding! A REIT usually pays an attractive amount in income every quarter. An investor can buy and sell REIT’s daily, making them a very liquid investment.

Some well knows REIT’s are Public Storage (PSA), which is a company that has self-storage facilities all over the United States. Another well-known REIT that has properties in our local area is Simon Property Group (SPG). Two familiar properties are Ross Park Mall and Grove City Outlets. 

     Do you have Real Estate REIT’s in your current investment portfolio? If not, speaking with an investment advisor would be the first step!Schenley Capital believes diversification is a key principal for your investment portfolio.We would like to assist in reviewing your current portfolio to select a customized mix of investments for you.We offer a free portfolio review. Contact us to schedule your personal portfolio review!


Written by: ||cassandra hartman, office manager||