Anyone invested in reits?

Who is a fan of reits? If yes which ones are you invested in?

Big investment in Realty income $O. Dividend is stable and monthly. Can’t go wrong with that. It is a bit expensive now though.

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Nice what about big box mate?

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Mostly US for REITs I have $NRZ, $LTC and $MAIN. UK REITs I will look at when the market becomes a bit more stable will invest in London based REITs. Most of my investments were done before the FX fee.

almost everyone that has a share pick portfolio invests in reits to some degree and there are multitudes of posts in this forum if you have a particular interest area.

most any company from most any sector can be incorporated as a “reit” as long as they adhere the rules.

I would add VICI, wich just purchased The Venitian and anounced it will buy MGM. They will now own a significant part of the Las Vegas Strip.

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Realty Income ($O)
Main Street Capital ($MAIN)
Dynex Capital ($DX)
Gladstone Commercial ($GOOD)

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Realty income your biggest holding?

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No, I started with Dynex. Biggest REIT position. My REITs are part of a dividends pie:

Not in REITs but always been slightly curious of them, as someone who knows little about them what is the benefit of investing in a REIT over buying actual property yourself aside from the being able to start with a small amount and the hands off nature? But like if your REIT holdings reached lets say 10-15k would you then invest in actual property with the money?

Which house in the UK could you buy for 10k though lol

you can find some places that need a lot of renovation work for 10-20k, but Hbomb’s point is more likely regarding a down payment, in which case my house was bought with a downpayment of just £6k and when a few more bits are finished the houses market price will be roughly double what I got it mortgaged for. so there is some decent profit on the whole, once costs are factored in,

REITs have the benefit of liquidity, while a house is bricks and mortar and is hard to sell for any given price once the time comes. if you are not looking to sell/flip houses then buying your own real estate for rental market may be pretty lucrative, but then you have to sort out all the related obligations and issues, which aren’t present when you just invest in a REIT.

Ah yes liquidity is a good argument. I guess for me my thinking is if people own their own house an/or rentals then there is an argument to NOT own REITs as already lots of your net worth tied up in property so if once crashes they all will suffer relatively correlated.
I know lots of people love REITs so I am guessing its to get liquid exposure to property for people who dont want to own physical property just shares in some.

you probably wouldn’t own both for sure, too much money tied up in a single industry. but finding a few alternative trusts to invest in would be a good match to a private rental business.

UK REITs are popular in the UK primarily because if you own them in an ISA, it has the most tax exemption you can possibly get and so more of the profits find their way to your account, making it easier to get good returns in a strong property market. you also don’t have to worry about empty properties or periods of absent/late payments. perfect for retirement income.

so it mostly comes down to liquidity and tax exemption. I would probably still own shares in Realty Income however if I was a landlord, despite being US and in the same industry, because it’s a bit of insurance. payments are steady and growing and all that even factoring in the 15% withholding.

it’s like the tech industry for most, looks good at times to hold a lot, but its easy to be too heavily weighted and suffer badly once a crash/correction arrives.

What do people think about BBOX for the UK? I like the fact its more logistics warehouse side of things so very different to residential property. Or DLR for the US for data centres.

For both still trying to read more when I have time so any good articles/links appreciated.

Yep makes sense, I favour UK dividends over US for tax reasons in ISA but some strong US companies can find in the UK like $MSFT, $SBUX, $JPM

I’m not too familiar with BBOX but looking at the company brief it does seem like a well placed and stable REIT. Div Yield isn’t bad either. Not sure about data centres though, there’s a lot of potential for things to go horribly wrong there and could lead to more volatile behaviour than I am comfortable with (which says something as I currently have a position in AHT)

I believe amazon is one of big boxes warehouses

Main is not a REIT. It is a BDC, completely different bussiness

You are indeed correct, I believe its about 17% of total rent is from Amazon and many on 20 year leases, I am digesting previous results and current recent results and looking at it all but it looks appealing investment to me, at a premium to recently reported NAV so not cheap but NAV growth is pretty tasty so that wouldn’t worry me for long term hold. I will continue to delve.