Introduction
REIT’s complete form is Real Estate Investment Trust. The REITs are the companies that finance or own income-producing real estate. Through these schemes, investors invest, own, finance, or operate incoming-producing properties across different real estate sectors. It works on the exact mechanism as stocks work. Real Estate Investment Trust invests in the actual physical estate. Investing in REIT means buying a small part of sizeable real estate. The Real Estate Investment Trust companies manage everything of the estate; they distribute the profits gained through rent or capital appreciation to their shareholders or unit holders.
The working model of Real Estate Investment Trust is the same as the mutual funds in which many investors invest and then share the profit according to their holding shares. But the significant difference between bonds, stocks, and Real Estate Investment Trusts is that in REITs, you buy, own, operate, or finance a real estate.
Working of Real Estate Investment Trust
In 1960 Congress first established REIT. Before 1960 only wealthy people were able to buy shares of real estate. But after REIT, people can invest and buy or own shares in commercial real estate, the same as wealthy people do.
Properties in the Real Estate Investment Trust may include data centers, commercial buildings, apartments, energy pipelines, offices, warehouses, timberland, self-storage, and retail centers.
The Real Estate Investment Trust work in a way that it combines the pool of money from many institutions and individual investors to buy different real estate properties or projects. These investors earn money without the hassle of buying or managing their properties because the REITs companies do this for them. They see which property they should buy, its paperwork, rents or its selling, and many other things and distribute the profit to the investors.
Types of Real Estate Investment Trust
There are majorly three types of Real Estate Investment Trust:
Mortgage REITs (mREITs)
mREITs or mortgage REITs allow the investors to finance or invest in income-generating real estate by originating or purchasing the mortgages backed securities or mortgagees. The mortgage REITs investors also earn from the interests of their investments.
Rental REITs
In rental REITs, the investors invest in commercial, residential, or industrial real estate. Investors earn money primarily through the rents of the property.
Hybrid REITs
The rental and mortgage Real Estate Investment Trust investment strategies are involved in hybrid REITs.
Top REITs For July 2022
These are the top REITs for July 2022:
Crown Castle International Corp
The market cap of CCI is $79 billion. CCI REIT operates and owns more than 80,000 route miles of fiber and 40,000 cell towers. There are several models through which it offers its services. The infrastructure of Crown Castle International Corp support about 110,000 small units. To every major U.S market, fiber connectivity solutions are provided by Crown Castle International Corp.
Simon Property Group, Inc
Simon Property Group REIT develops, operates, and owns dining, shopping, and entertaining Real Estate properties. Its market cap is about $56 billion. The company has its name on the list of one of the largest companies that own and operate such businesses worldwide. SPG also operates international properties, lifestyles centers, and premium outlets, along with the operation of the largest mall in the U.S. this company produces nearly $60 billion from more than three billion customers annually.
Welltower Inc
It is a health care Real Estate Investment Trust. It was founded in 1970. Welltower Inc operates, develops, and owns healthcare properties, including post-acute care, outpatient medical, and senior housing. The market cap of Welltower Inc is $40 billion.
Digital Realty Trust Inc
The market cap of Digital Realty Trust Inc is $39 billion. This is a REIT that operates and owns carrier-neutral data centers. It provides solutions for cloud-based enterprise problems. Digital Realty Trust Inc was founded in 2004. It provided peering services to its customers worldwide. In 26 countries, this company has 290 data centers. This company is minimizing its environmental impact by optimizing energy usage.
Public Storage
In 1927 public storage opened its first self-storage facility. It owns and operates the world’s most extensive self-storing facilities. This company owns 170 million square feet of storage space and about 25000 storage facilities in Europe and the U.S.
Prologis
Prologis is a worldwide logistic Real Estate Investment Trust. It owns and operates the world’s largest industrial real estate. It has about 1.0 billion square feet leasing space and 4,675 industrial properties worldwide. Its market value is $81.9 billion.
Conclusion
REITs are one of the most growing investing strategies around the globe because everyone can invest in Real Estate through REIT. Many REIT companies nationally and internationally provide the facilities to invest in Real Estate. In this article, top REITs for July 2022 have been given, and these are some of the best options for you to invest in Real Estate.
