REITs must provide at least 90% of their income out to shareholders as dividends.REIT sub-sectors — industrial properties, data centers and residential housing — have delivered strong returns in recent years.
U.S real estate investment trusts today manage $4.5 trillion in real estate worldwide. Many groups on Wall Street offer these tax-friendly funds to retail investors. KKR's real estate business is one of the big players in the REIT game. The private equity firm manages multiple REIT funds. The KKR Real Estate Select Trust, which currently manages $1.5 billion in assets, paid a dividend of 5.4% to its investors in July 2023.Get Philly local news, weather forecasts, sports and entertainment stories to your inbox."When you look at the after tax equivalent of that yield, it is very compelling.
Larger funds sometimes contain a diversified pool of assets. Categories may include office, student housing, casino, timberlands, radio and cell towers, server farms, self-storage properties, billboards, and much more. "Back in the 1960s, there were three or four different types [of REITs], said Sher Hafeez, a managing director at Jones Lang LaSalle, a real estate services firm."Now, I can count at least 20 different types."