Individual investors represent a core component of the REIT investment universe. Whether investing in individual companies, through a REIT mutual fund or exchange-traded fund or through a retirement plan, an increasing number of individuals have recognized the benefits of including a REIT allocation in their investment portfolios.
Publicly traded REITs offer investors the benefits of commercial real estate investment along with the advantages of investing in a publicly traded stock. The special investment characteristics of income-producing real estate provide REIT investors with competitive long-term rates of return that complement the returns from other stocks and from bonds.
REITs over time have demonstrated a historical track record providing a high level of current income combined with long-term share price appreciation, inflation protection, and prudent diversification for investors across the age and investment style spectrums.