Should i sell reits

If you live in a coastal area, you've probably seen a Tanger Outlets property. I know there's one close to Anand in the National Harbor.

Frankel: Yeah, they're the biggest stand-alone outlet shopping company. I'll make the slide deck available to whoever wants it, by the way. Store Capital, very similar business to Realty Income. Newer, it got on my radar because it's the only read that Warren Buffett invest in through Berkshire Hathaway.

Healthpeak properties. Healthcare is a great growth trend long term. They invest in life science properties and medical offices and a smaller concentration in senior housing.

Great growth market. The healthcare industry is just going to explode over the next few decades. Finally, and then I'll shut up and see what these guys think about them, Ryman Hospitality Properties. It's probably my favorite hotel company in the world.

They own five massive hotels all under the Gaylord brand name. If you're a national person, you know of the Ryman Auditorium where the company gets its name, the Grand Ole Opry, and the Ole Red restaurant chain that was opened in partnership with Blake Shelton.

They own that as well. Not a total real estate play there, actually, they have a restaurant business and the Gaylord, I believe the full actually had an event at the Gaylord at one point.

Frankel: What are your thoughts on all of these? Are these really "OK boomer" stocks or are they appropriate retirement investments? Withers: I guess, when I looked at the financials for these, they operate very differently than my tech stocks and software stocks. They are buying infrastructure, whether it's land, property, building buildings, various places along. Then they use those assets and those physical buildings to then make money. One of the things that I look at as I look at companies, is I want them to be more virtual.

Companies with more distribution centers or manufacturing centers or have to have retail outlets to capture revenue are not things that I'm interested in, and that's exactly how these guys make money, right? They have buildings and that's how they make money. But the Digital Realty one is one that piqued my interest very much and it ranked pretty high on my scores as well. Discounted offers are only available to new members. Stock Advisor will renew at the then current list price. Average returns of all recommendations since inception.

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What are REITs? Why would somebody invest in REITs? What types of REITs are there? What are the benefits and risks of REITs? They generally cannot be sold readily on the open market. If you need to sell an asset to raise money quickly, you may not be able to do so with shares of a non-traded REIT. Non-traded REITs typically do not provide an estimate of their value per share until 18 months after their offering closes. This may be years after you have made your investment.

As a result, for a significant time period you may be unable to assess the value of your non-traded REIT investment and its volatility. To do so, they may use offering proceeds and borrowings. This practice, which is typically not used by publicly traded REITs, reduces the value of the shares and the cash available to the company to purchase additional assets.

This can lead to potential conflicts of interests with shareholders. For example, the REIT may pay the external manager significant fees based on the amount of property acquisitions and assets under management. They typically are limited to institutional investors and accredited investors who can directly access the funds or reach them via private networks. They also usually carry much higher minimum investment requirements and can be much harder to offload.

REITs can be a good addition to your portfolio because they often perform independently of stock and bond markets. This can make them a good diversifier for your asset allocation. Because they typically pay high dividends, REITs can provide income to investors looking for cash flow, and they offer an opportunity for investors who want to get involved in large-scale real estate investment without the hassle of individual purchases.

REIT dividends are usually taxed as ordinary income. I'm a freelance journalist, content creator and regular contributor to Forbes and Monster. Find me at kateashford. With two decades of business and finance journalism experience, Ben has covered breaking market news, written on equity markets for Investopedia, and edited personal finance content for Bankrate and LendingTree.

Select Region. United States. United Kingdom. Kate Ashford, Benjamin Curry. Contributor, Editor. Editorial Note: Forbes Advisor may earn a commission on sales made from partner links on this page, but that doesn't affect our editors' opinions or evaluations. Be an entity that is taxable as a corporation. Be managed by a board of directors or trustees. Have a minimum of shareholders. You might consider investing in a REIT for a few key reasons: Get Exposure to Real Estate One of the primary reasons to invest in REITs is the exposure they provide to real estate—residential, commercial or retail—without requiring you directly purchase individual properties.

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