Real estate investment trusts (REITs) have become an increasingly popular way to diversify an investment portfolio. Not only do they provide investors access to high-quality real estate but they also offer the potential for growth and high dividend returns. But not every REIT is a worthwhile buy.
Poor management, too much debt, a bad business model, and limited growth opportunities are a few of the common reasons a REIT can tank. And these are issues that Ashford Hospitality Trust (NYSE: AHT) and Office Properties Income Trust (NASDAQ: OPI) are both facing today. Here's a closer look at why these two REITs should be avoided.
Image source: Getty Images.
For further details see:
2 Real Estate Stocks to Avoid Like the Plague