Real Estate Investment Trusts (REITs) are a way for investors to access property markets. Instead of buying buildings directly, investors earn dividends from rental income.
## Types of REITs
– **Equity REITs:** Own and manage properties.
– **Mortgage REITs:** More sensitive to interest rates.
– **Hybrid REITs:** Combine property ownership and mortgages.
## Why investors choose REITs
– Popular with retirees.
– Hedges against inflation.
– No need to manage properties.
## Examples of REITs
– Simon Property Group: focuses on shopping malls.
– Prologis: warehouses and logistics centers.
– Public Storage: leader in self-storage facilities.
## Risks of REITs
– Rising rates reduce borrowing power.
– Office REITs challenged by remote work.
– Economic downturns reduce rental income.
**Conclusion**
REITs are a bridge between real estate and lamar advertising company stock markets. By combining high dividends and diversification, they help balance portfolios.
