Are you considering a career in real estate investment trusts? If so, you may be wondering how many jobs are available in real estate investment trusts. The answer may surprise you!
According to the most recent data, there are nearly 1,000 real estate investment trust jobs available across the United States. This number has been steadily increasing over the past few years, and it is expected to continue to grow in the future.
There are a variety of positions available within real estate investment trusts, including asset management, finance, and operations. With such a large and growing industry, there is sure to be a position that is perfect for you. So don’t delay, start your search today!
Table of Contents
What Is a Real Estate Investment Trust?
A real estate investment trust (REIT) is a company that owns, operates or finances income-producing real estate. REITs pool the capital of many investors to purchase property portfolios, which often include office buildings, shopping centers, apartments and warehouses. Investors in REITs receive regular dividend payments from the income generated by these properties.
REITs can be publicly traded on major stock exchanges or offered as private placements. Publicly traded REITs are required to distribute at least 90 percent of their taxable profits to shareholders in the form of dividends. This makes them attractive income vehicles for investors seeking regular cash flow. Private placements are not required to make distributions to shareholders but may offer tax advantages and greater control over the underlying real estate assets.
REITs offer investors several benefits, including:
- Diversification: By investing in a REIT, investors can gain exposure to a diversified portfolio of income-producing real estate assets without the hassle and expense of direct ownership.
- Liquidity: Shares of publicly traded REITs can be bought and sold on major stock exchanges throughout the day, providing investor with convenient liquidity.
- Professional Management: REITs are required to have a professional management team in place to oversee the day-to-day operations of their portfolios. This allows investors to reap the benefits of professional management without having to directly manage the properties themselves.
The benefits of investing in REITs
Real estate investment trusts (REITs) offer a unique opportunity to invest in large-scale commercial real estate projects without having to undertake the development or management yourself. REITs pool the resources of many investors to purchase, finance, and manage properties on their behalf. In exchange for this professional management, REIT investors enjoy several benefits, including:
Diversification: By investing in a REIT, you can spread your risk across many different properties and geographic areas. This diversification can help protect your investment from downturns in any one particular market.
Liquidity: REITs are required to distribute at least 90% of their taxable income to shareholders in the form of dividends. This distribution policy provides shareholders with a high level of liquidity and makes REITs an attractive investment for individuals who may need to access their cash quickly.
Professional Management: As mentioned above, REITs hire professional managers to oversee the day-to-day operations of the properties they own. This frees up investors to pursue other opportunities and leaves the management of the property in the hands of experts.
If you’re considering investing in a REIT, be sure to do your research and consult with a financial advisor to determine if this type of investment is right for you.
The types of REITs
REITs are classified as either equity REITs or mortgage REITs (mREITs). Equity REITs are the most common type and focus on owning and operating real estate properties. They use the rental income from these properties to pay dividends to shareholders. Mortgage REITs invest in mortgages and mortgage-backed securities (MBS). These securities are then used to generate income for shareholders.
The different types of REITs can be further divided into subcategories. For example, equity REITs can be further classified as office REITs, retail REITs, or residential REITs. MortgageREITS can be further classified as agency mREITs or non-agency mREITs.
Below is a list of the different types of REITS:
- Equity REITs: Office REITS, Retail REITS, Residential REITS
- MortgageREITS: Agency mREITS, Non-Agency mREITS
Why real estate investment trusts Are Popular
Real estate investment trusts (REITs) are popular for a variety of reasons. They offer investors a number of benefits, including the ability to diversify their portfolios, generate income, and access a variety of real estate investments.
There are a number of different types of REITs available to investors, which provides them with the flexibility to choose an investment that meets their specific goals and needs. For example, some REITs focus on residential properties while others invest in commercial real estate.
REITs also offer investors the opportunity to generate income. Most REITs pay out a portion of their earnings as dividends, which can provide investors with a steady stream of income. Additionally, REITs often offer shareholders the ability to participate in the appreciation of the underlying property values.
Finally, REITs offer investors access to a variety of real estate investments that they might not otherwise have the opportunity to invest in. For example, some REITs focus on specific sectors such as healthcare or self-storage. Others invest in properties located in specific geographic regions. By investing in a REIT, investors can gain exposure to a wide variety of real estate assets without having to purchase and manage them directly.
How do Real Estate Investment Trusts Work?
A Real Estate Investment Trust, commonly referred to as a REIT, is a company that owns, and in some cases, operates income-producing real estate. REITs own many different types of commercial real estate, ranging from office and apartment buildings to warehouses, hotels, shopping centers, health care facilities, and self-storage units.
REITS are easy for investors to get exposure to the real estate market without having to buy or finance property themselves. And because they trade on major exchanges like stocks, they offer liquidity and can be bought and sold quickly.
There are two main types of REITS: equity REITS and mortgage REITS. Equity REITs invest in and own properties, while mortgage REITS lend money to other investors who are buying property. Both types of REITS can be publicly traded on major exchanges or offered as non-traded REITs, which are not listed on an exchange.
As of December 31, 2019, there were 229 equity REITs and 28 mortgage REITs trading on major U.S. stock exchanges.*
*Source: National Association of Real Estate Investment Trusts (NAREIT)
Are real estate investment trusts a Good Investment?
There are many different types of real estate investment trusts, but most of them are set up as pass-through entities for federal income tax purposes. This means that the trust does not have to pay corporate taxes on the income it earns from its real estate holdings. Instead, the trust shareholders are taxed on their share of the trust’s earnings.
The main advantage of investing in a real estate investment trust is that it gives you a way to invest in large, professionally managed real estate portfolios without having to buy or manage individual properties yourself. Another advantage is that REITs tend to be less volatile than stocks, providing a measure of stability in your portfolio.
However, there are some disadvantages to REITs as well. One is that they typically don’t offer the same potential for capital appreciation as individual properties. Another is that they often have high expenses, which can eat into your returns. And finally, REITs usually don’t offer the same degree of control or flexibility as owning individual properties.
Types Of Jobs Available In Real Estate Investment Trusts
Real estate investment trusts, or REITs, offer a variety of job opportunities for those interested in the industry. Real estate investment trusts is a good career path, From asset management and portfolio management to acquisitions and development, there are many different jobs available in real estate investment trusts.
The most common jobs available in real estate investment trusts are in asset management. Asset managers are responsible for the day-to-day operations of a property, as well as its long-term strategic planning. They work with tenants, landlords, and other stakeholders to ensure that the property is well-maintained and profitable.
Portfolio managers are responsible for managing a company’s entire real estate portfolio. This includes properties of all types – office buildings, retail centers, apartments, warehouses, etc. Portfolio managers work with asset managers to ensure that each property is performing up to its potential.
Acquisitions and Development jobs are responsible for finding and acquiring new properties for the REIT to invest in. This can involve working with brokers, developers, and other stakeholders to identify potential opportunities. It also requires strong analytical skills to evaluate whether or not a particular property is a good fit for the REIT.
There are also many support roles available within REITs, such as accounting, finance, marketing, human resources, and information technology. These positions are essential to the day-to-day operations of a REIT but do not directly involve working with properties or tenants.
Conclusion
The job market for real estate investment trusts (REITs) is surprisingly strong, with a wide variety of positions available. The most common jobs are in asset management and acquisitions, but there are also many opportunities in operations, finance, accounting, and law.
Asset managers are responsible for the day-to-day performance of the REIT’s portfolio. They create and implement investment strategies, monitor market conditions, and make decisions about when to buy or sell properties. Acquisitions analysts conduct due diligence on potential properties and assist in the negotiation of purchase agreements. Operations managers oversee the REIT’s properties and staff, ensuring that they are running smoothly and meeting all regulatory requirements.
Finance professionals at REITs work on a variety of tasks, from forecasting cash flow to preparing financial statements. They also work closely with investors to ensure that they are getting the best possible return on their investment. Accountants maintain the REIT’s financial records and prepare tax returns. Lawyers advise the REIT on legal matters relating to its business activities.
REITs offer a great opportunity for those interested in a career in real estate. The industry is growing rapidly, and there is a high demand for qualified professionals. With a little research, you should be able to find a position that suits your skills and interests perfectly.