Real Estate Investment Trusts in the US
Real estate investment trusts (REITs) provide an opportunity for individual investors to own real estate that otherwise would be too expensive. As a result, demand for and growth of the industry and its assets are often associated with the general health of the real estate sector. The industry is currently benefiting from a rise in rents and low vacancy rates in several property markets and is expected to have increased over the five years to 2016. Well-capitalized REITs are ramping up property purchases and funding construction to take advantage of low interest rates and mounting rental demand. Therefore, economic recovery and a rebound in the real estate market will drive up industry revenue. During the next five-year period, revenue will continue increasing as the overall economy improves.
This industry comprises legal entities that are categorized as real estate investment trusts (REITs). REITs, like mutual funds, use the pooled capital of many investors to directly invest in income-yielding properties. To qualify as an REIT, a company or trust
must distribute all of their taxable income to shareholders annually in the form of dividends. Income is largely generated from rent, interest and capital gains.
This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.