What is the role of publicly traded REITs in a diversified investment portfolio? We explore the merits of REITs for the three categories that form broad portfolio diversification: growth, capital preservation, and inflation protection.
Classification & Structure of REITs
By way of background, a REIT is a security that invests in real estate through property or mortgages and often trades on major stock exchanges. Most REITs receive special tax treatment and typically offer attractive dividend yields. Unlike other real estate companies, a REIT does not develop real estate properties to sell them.
Read Canterbury's white paper on Real Estate Investment Trusts