Who Invests in REITs?
Individual investors directly own REIT shares purchased on the open market. Other typical buyers of REITs are pension funds, endowment funds and foundations, insurance companies, bank trust departments and mutual funds. REIT shares typically may be purchased on the open market, with no minimum purchase required. Many investors may also own REITs through mutual funds that specialize in public real estate companies. Investors may prefer to invest in REITs for their high levels of current income. In addition, investors looking for ways to diversify their investment portfolios beyond other common stocks as well as bonds are attracted to the unique characteristics of REITs.
Individual investors directly own REIT shares purchased on the open market. Other typical buyers of REITs are pension funds, endowment funds and foundations, insurance companies, bank trust departments and mutual funds. REIT shares typically may be purchased on the open market, with no minimum purchase required. Many investors may also own REITs through mutual funds that specialize in public real estate companies. Investors may prefer to invest in REITs for their high levels of current income. In addition, investors looking for ways to diversify their investment portfolios beyond other common stocks as well as bonds are attracted to the unique characteristics of REITs.
Tens of thousands of individual investors, both U.S. and non-U.S., own shares of REITs. Other typical buyers of REITs are pension funds, endowment funds and foundations, insurance companies, bank trust departments and mutual funds.Investors typically are attracted to REITs for their high levels of current income and the opportunity for moderate long-term growth. These are the basic characteristics of real estate. In addition, investors looking for ways to diversify their investment portfolios beyond other common stocks as well as bonds are attracted to the unique characteristics of REITs.Today, a broad range of investors are using REITs to help achieve their investment goals, from large pension funds seeking diversification to the retired school teacher seeking a high-quality income investment.REIT shares typically may be purchased on the open market, with no minimum purchase required.
Thousands of investors, both U.S. and non-U.S., own shares of REITs. So do pension funds, endowment funds, insurance companies, bank trust departments and mutual funds. An individual who chooses to invest in a REIT seeks to achieve current income distributions and long-term stock appreciation potential. An investor also has the benefit of liquidity, if needed. REIT shares typically may be purchased on the open market, with no minimum purchase required.
