REITs
Listed property companies required to distribute most taxable income.
REITs trade like stocks, so you get daily liquidity and price transparency alongside property exposure.
REITs trade like stocks, so you get daily liquidity and price transparency alongside property exposure.
Funds from operations (FFO), not net income, is the standard earnings measure.
Key concepts to master
- 01.Total cost of ownership, including fund fees and platform fees
- 02.Liquidity: when, and on what terms, you can get your money back
- 03.Tax treatment and which account type this belongs in
- 04.How this exposure overlaps with what you already own
Common mistakes
- ×Sizing a position based on recent performance rather than a written plan
- ×Confusing infrequent valuation with genuine stability
- ×Ignoring the tax drag of frequent trading in taxable accounts