5 Reasons Why It Could Be Time To Consider Reits for Your Portfolio

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The current economic climate is challenging. Interest rates are rising, and we are seeing inflation continue to balloon.

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Investors are keeping a close eye on their portfolios and adjusting where needed.

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Intuition tells us that with rising interest rates, real estate investments are increasingly risky and will result in lower and lower returns.

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Real Estate Investment Trusts (REITs) offer a different avenue for including properties in your investment planning.

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What is a REIT?

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A REIT provides the opportunity to indirectly put money into real estate via an entity that owns and operates income-generating properties (think residential rentals, hotels, commercial leases, etc.).

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Although the property (and subsequent share) values may increase, the bulk of the income generated by REITs is in the form of dividend returns.

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The Three Types of REITs

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Equity REITs: These REITs generate income through rents paid. They have a low rate sensitivity. A strong management firm is vital to the success of an equity REIT.

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Why it Could be Time to Consider REITs

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1. REIT’s Historical Performance in Similar Conditions is Favorable

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