Specialty REITs own and manage a unique mix of property types and collect rent from tenants. Specialty REITs own properties that don’t fit within the other REIT sectors. Examples of properties owned by specialty REITs include movie theaters, casinos, farmland and outdoor advertising sites.
Caesars Palace, multiple Six Flags amusement parks, and Northstar California ski resort are all REIT owned.
Who Invests in Specialty REITs?
Many Americans may be unaware that they already have investments in REITs via their 401ks, Thrift Savings Plan (TSP), or other investment vehicle geared towards retirement. Large institutional investors, including pension funds, endowments, foundations, insurance companies, and bank departments, also invest in REITs as a cost effective and efficient way to gain exposure to the real estate asset class.
How to Invest in Specialty REITs
There are numerous specialty REITs listed on the FTSE Nareit US Real Estate Indexes. Many investors acquire shares in these REITs via REIT mutual funds or exchange-traded funds (ETFs), but individuals can also invest directly in an office REIT with the help of a broker.
Overview
4/30/2023, Source: FTSE
Number of REITs
9
Dividend Yield
4.90%
YTD Total Return
7.03%
April Total Return
3.59%
2022 Total Return
-0.78%
Quarterly Data
Source: Nareit T-Tracker
Source: Nareit T-Tracker
| Q4 2022 | 2022 | |
|---|---|---|
| FFO ($M) | $1,471 | $4,311 |
| NOI ($M) | $1,847 | $7,000 |
| Dividends paid ($M) | $1,031 | $3,813 |
