REITs' track record of reliable and growing dividends, combined with long-term capital appreciation through stock price increases, has provided investors with attractive total return performance for many periods over the past 40 years compared to the broader stock market as well as bonds and other assets.
REITs over time have demonstrated a historical track record providing a high level of current income combined with long-term share price appreciation.
REITs are professionally managed, publicly traded companies that manage their businesses with the goal of maximizing shareholder value. That means positioning their properties to attract tenants and earn rental income, and managing their property portfolios and buying and selling of assets to build value throughout long-term real estate cycles.
This drives total return performance for REIT investors, who benefit from a strong, reliable annual dividend payout and the potential for long-term capital appreciation. For example, REIT total return performance over the past twenty years has outstripped the performance of the S&P 500 Index and other major indices – as well as the rate of inflation.