The Complete List of REIT Stocks Trading on the NYSETopForeignStocks.com (2024)

FAQs

How many REIT stocks are there? ›

REITs have brought institutional capital into innovative real estate sectors like data centers, cell towers, self-storage, healthcare, lodging, billboards, and timberlands. There are 893 listed REITs globally with a total market capitalization of $2.5 trillion as of December 2021 (NAREIT).

The majority of U.S. REITs trade on either the New York Stock Exchange (NYSE) or the NASDAQ. Investors may invest in a publicly traded REIT by purchasing shares through a FINRA-registered broker. As with other publicly traded securities, investors may purchase REIT common stock, preferred stock or debt securities.

You can verify the registration of both publicly traded and non-traded REITs through the SEC's EDGAR system. You can also use EDGAR to review a REIT's annual and quarterly reports as well as any offering prospectus. For more on how to use EDGAR, please visit Research Public Companies.

To qualify as a REIT, a company must have the bulk of its assets and income connected to real estate investment and must distribute at least 90 percent of its taxable income to shareholders annually in the form of dividends.

When investing only in REITs, individuals incur more risk than when they are part of a diversified portfolio. REITs can be sensitive to interest rates and may not be as tax-friendly as other investments.

Direct real estate offers more tax breaks than REIT investments, and gives investors more control over decision making. Many REITs are publicly traded on exchanges, so they're easier to buy and sell than traditional real estate.

As referenced earlier, you can purchase shares in a REIT that's listed on major stock exchanges. You can also buy shares in a REIT mutual fund or exchange-traded fund (ETF). To do so, you must open a brokerage account. Or, if your workplace retirement plan offers REIT investments, you might invest with that option.

How do I choose a REIT stock? ›

When you're ready to invest in a REIT, look for growth in earnings, which stems from higher revenues (higher occupancy rates and increasing rents), lower costs, and new business opportunities. It's also imperative that you research the management team that oversees the REIT's properties.

Overview. A REIT is taxable as a regular corporation, but is entitled to the dividends paid deduction. Therefore, a REIT does not pay federal income tax on net taxable income distributed as deductible dividends to shareholders. Net income from foreclosure property is taxed at 35 percent.

The five largest REITs in the United States are: American Tower Corporation, Prologis, Crown Castle International, Simon Property Group and Weyerhaeuser.

Today, U.S. REITs own more than $4 trillion of gross real estate with public REITs owning $2.5 trillion in assets. U.S. listed REITs have an equity market capitalization of more than $1.2 trillion. In 2022, REITs paid an estimated $109.9 billion in dividends to shareholders.

“I recommend REITs within a managed portfolio,” Devine said, noting that most investors should limit their REIT exposure to between 2 percent and 5 percent of their overall portfolio. Here again, a financial professional can help you determine what percentage of your portfolio you should allocate toward REITs, if any.

Real estate investment trusts, also known as REITs, typically offer high yields, making them appealing choices for income investors. The real estate stocks that Morningstar covers, as a group, looked 8.5% undervalued as of July 12, 2024.