Non-Traded Real Estate Investment Trusts (REITs)
A REIT provides for the ability to pool money from many investors to create and acquire a diversified, professionally-managed portfolio of commercial real estate investments. The U.S. Congress created REITs in 1960 to make investments in large scale, income producing real estate accessible to retail investors. Investors in a professionally managed REIT may benefit from greater diversification through a portfolio of properties, rather than a single asset.
REITs are legally required to pay 90% of taxable income as dividends and, therefore, have the potential to provide attractive streams of income through cash distributions* to investors.
Potential Benefits of Investing in Commercial Real Estate through Non-Traded REITs
Given the historic uncertainty of the financial markets, we believe adding an investment in commercial real estate to a traditional investment portfolio may provide investors with a number of potential benefits including:
- Capital preservation
- Reduced portfolio volatility
- An alternative source of cash flow
- Lower portfolio risk through reducing the correlation across major asset classes
- Potential hedge against inflation
- Professional management
*There is no guarantee of distributions. Distributions may be paid from sources other than income generated from the REIT’s investments. Investing in non-traded REITs involves various risks including but not limited to loss of principal, limited liquidity and lack of price transparency. Diversification does not eliminate risk or assure better performance.