REITs allow investors to acquire ownership in real estate ventures, including the opportunity to own and operate commercial properties, from apartment complexes to hospitals and shopping malls. The trusts consisting of 100 shareholders, with no 5 owning more than 50% of the shares between them. Seventy-five percent of fund assets must be invested in real estate, cash or U.S. Treasuries, generating seventy-five percent of their income from real estate.

Investment in retail properties tend to be less volatile than residential properties. Matthew Frankel ( cites a few reasons, including the fact that most commercial tenants sign longer leases (15 years or more), and there are usually annual rent increases built into the lease, effectively minimizing the risk of tenants leaving or rents dropping during a recession. Because retail tenants are on net or triple net leases, they are responsible for fluctuating expenses including taxes, insurance and building maintenance (unlike residential situations, where the responsibility for all three lies on the landlord).

If you would like to discuss how REITs may fit in your current portfolio, you can contact for more details. Our investment advisors are happy to take your questions and help you to find a suitable investment vehicle for your portfolio.

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

Investing in Real Estate Investment Trusts (REITs) involves special risks such as potential illiquidity and may not be suitable for all investors. There is no assurance that the investment objectives of this program will be attained.


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