Real Estate Investment Trusts (REITs) are companies that own or finance income-producing real estate. Instead of buying buildings directly, kennametal forecast investors gain exposure to real estate.
## Types of REITs
– **Equity REITs:** The most common type.
– **Mortgage REITs:** More sensitive to interest rates.
– **Hybrid REITs:** Combine property ownership and mortgages.
## Why investors choose REITs
– Popular with retirees.
– Diversification: Real estate exposure balances stock-heavy portfolios.
– No need to manage properties.
## Examples of REITs
– Steady income from retail tenants.
– Benefiting from e-commerce boom.
– Public Storage: leader in self-storage facilities.
## Risks of REITs
– Impact property values.
– Office REITs challenged by remote work.
– Dividends not guaranteed.
**Conclusion**
REITs are an accessible way to invest in property. By combining high dividends and diversification, they offer growth and stability.
