The REIT Narrative
REITs are often thought to be 'safe' investments, i.e., safe compared to other equity sectors, only behind utilities. REIT revenues and cash flows are supported by leases, which increase visibility of future revenues and decrease volatility in operating fundamentals. It is often stated that REITs provide important diversification to investment portfolios. REITs are required to pay out 90% of their taxable income. Investors, especially retail investors, prize the dependable dividends. Institutional investors like the low beta (market risk) high yield characteristics. It is widely accepted that REITs have cleaned up their