Real Estate Investment Trusts

What they are
These are entities that specialize in some aspect of the real estate industry. REIT's are different in that the profits are not taxed at the corporate level. To maintain that status, at least 90% of annual net income has to be paid out in dividends.

Tax Issue
For purposes of the United State tax code, these dividends are not qualified for special tax treatment.

Equity REITs
Most REITs operate as equity REITs, providing investors access to diverse portfolios of income-producing assets they would not be able to afford on their own. These real estate companies own properties in a range of real estate sectors that are leased to tenants, such as office buildings, shopping centers, apartment complexes and more. They distribute the bulk of their income to shareholders in the form of dividends.

mREITs
Mortgage REITs (mREITS) provide financing for income-producing real estate by purchasing or originating mortgages and mortgage-backed securities and earning income from the interest on these investments.

PNLRs
Public non-listed REITs (PNLRs) are registered with the SEC but do not trade on national stock exchanges. Liquidity options vary and may take the form of share repurchase programs or secondary marketplace transactions but are generally limited.

Private REITs
Private REITs are real estate funds or companies that are exempt from SEC registration and whose shares do not trade on national stock exchanges. Private REITs generally can be sold only to institutional investors.

Office REITs
Office REITs own and manage office real estate and rent space in those properties to tenants. Those properties can range from skyscrapers to office parks. Some office REITs focus on specific types of markets, such as central business districts or suburban areas. Some emphasize specific classes of tenants, such as government agencies or biotech firms.

Industrial REITs
Industrial REITs own and manage industrial facilities and rent space in those properties to tenants. Some industrial REITs focus on specific types of properties, such as warehouses and distribution centers. Industrial REITs play an important part in e-commerce and are helping to meet the rapid delivery demand.

Retail REITs
Retail REITs own and manage retail real estate and rent space in those properties to tenants. Retail REITs include REITs that focus on large regional malls, outlet centers, grocery-anchored shopping centers and power centers that feature big box retailers. Net lease REITs own freestanding properties and structure their leases so that tenants pay both rent and the majority of operating expenses for a property.

Lodging REITs
Lodging REITs own and manage hotels and resorts and rent space in those properties to guests. Lodging REITs own different classes of hotels based on features such as the hotels’ level of service and amenities. Lodging REITs’ properties service a wide spectrum of customers, from business travelers to vacationers.

Residential REITs
Residential REITs own and manage various forms of residences and rent space in those properties to tenants. Residential REITs include REITs that specialize in apartment buildings, student housing, manufactured homes and single-family homes. Within those market segments, some residential REITs also focus on specific geographical markets or classes of properties.

Timberland REITs
Timberland REITs own and manage various types of timberland real estate. Timberland REITs specialize in harvesting and selling timber.

Health Care REITs
Health care REITs own and manage a variety of health care-related real estate and collect rent from tenants. Health care REITs’ property types include senior living facilities, hospitals, medical office buildings and skilled nursing facilities.

Self-storage REITs
Self-storage REITs own and manage storage facilities and collect rent from customers. Self-storage REITs rent space to both individuals and businesses.

Infrastructure REITs
Infrastructure REITs own and manage infrastructure real estate and collect rent from tenants that occupy that real estate. Infrastructure REITs’ property types include fiber cables, wireless infrastructure, telecommunications towers and energy pipelines.

Data Center REITs
Data center REITs own and manage facilities that customers use to safely store data. Data center REITs offer a range of products and services to help keep servers and data safe, including providing uninterruptable power supplies, air-cooled chillers and physical security.

Diversified REITs
Diversified REITs own and manage a mix of property types and collect rent from tenants. For example, diversified REITs might own portfolios made up of both office and industrial properties.

Specialty REITs
Specialty REITs own and manage a unique mix of property types and collect rent from tenants. Specialty REITs own properties that don’t fit within the other REIT sectors. Examples of properties owned by specialty REITs include movie theaters, casinos, farmland and outdoor advertising sites.

Source: https://www.reit.com/what-reit/reit-sectors