REITs

Introduction
Real Estate Investment Trusts (REITs) are companies that own and/or manage real estate.  They are like stocks.  They have different securities in them like a mutual fund.  There are 3 kinds of REITs: equity, mortgage, and hybrid.  REITs have been in the US for over 50 years.  REITs are in many other countries as well.   REITs have there on Electronic Traded Funds (ETFs).

Breakdown
'Shopping malls, healthcare facilities, apartments, warehouses, office buildings, and hotels make up REITs.'   Other buildings are in its portfolio as well. Different REITs own different types of properties.  I assume REITs that own commercial buildings make the most $ because the rent is higher on the commerial property than residential property.  REIT all together are worth $3 trillion!

REITs are a must have if you want to diversify your portfolio. Having REITs in your portfolio reduces risk. They have great dividends and capital appreciation.  They have great inflation protection because rents and other real estate payments go up if inflation goes up.  REITs have better returns than stocks and bonds.

Types of REITs
Mortgage REITs:  A company purchases a mortgage, which helps the landlords buy property. The returns come from the interest on the mortgage.

Equity REITs: A company owns property 'income-producing' real estate.  The returns come from rent and similar payments.

Hybrid REITs: A combination of the 2.

History
REITs were created in 1960 by President Eisenhower when he signed the Cigar Excise Tax Extension into law.  They give investors the ability to invest in real estate the same way they invest in other assets.  They expanded in the 1970's because of construction.  The Tax Reform Act of 1976 gave REITs the ability to become corporations or business trusts.  Modern-day REITs were created in 1992 by Reatil REIT Taubman Centers, Inc.  REITs fell off in 2007 because the housing bubble burst.  In response to this REITs paid off some debt and sold some stock.  From 2009-2014 REITs made more $ than the stock market.

REITs in Other Countries
Australia: It has the most REITs outside the US.  Their market capitalization is about $100 billion!  Most of the $ of the REITs come from rent.  The REIT in Australia is known as A-REIT.  They have great diversity. A-REITs have properties in the US, UK, and New Zealand.

Belgium:  REITs are very limited.  'They can invest in hotels, but they can't mange them.'  They can have no more than 20% of assets in a particular property.  A company must have 1.25 million Euros to become a REIT.  80% of the money made from REITs must be given to investors.  REITs have to pay a 39.9% corporate tax.

Hong Kong: HK-REITs are worth more than $15 billion as of 2012.  Some HK-REITs own property in mainland China.

Pakistan: REITs must give 90% of its profit to shareholders.  The REITs here get its money from development and rent.          

There are many other countries with REITs, but this will suffice.

REITs ETFs
This is a collection of real estate investment trusts.  You can purchase them from the US and/or other countries.  They have higher than average dividend yields.  I assume you will make more $ from this than just a single REIT.

Conclusion
REITs are real estate stock and they have their own EFTs.  There are 3 different types of REITs.  They were created in the US over 50 years ago. Now it is in many other countries.  I will buy some in the future.

References
www.reit.com
wikipedia.org/wiki/Real_estate_investment_trust
http://www.reitinfo.com/
http://marketrealist.com/2015/08/different-types-reits/
Investing in REITs
Singapore REITs
REIT Intro
REIT vs Owning Property