Are REITs a Good Investment in 2022? MRA Answers
When it comes to investments, there are many options to choose from. One option that is growing in popularity is investing in REITs. But, what are REITs? And, more importantly, are REITs a good investment in 2022?
In this blog post, MRA Capital Partners answers these questions to help you decide if REITs are the right investment for your portfolio.
What are REITs?
REITs, or Real Estate Investment Trusts, are a type of investment that allows you to invest in real estate without actually owning any property. REITs are bought and sold on stock exchanges, just like any other type of stock. When you invest in a REIT, you become a shareholder in the trust. The trust then uses the money you invested to purchase or finance income-producing real estate properties.
Key Benefits of REITs
One of the main benefits of investing in REITs is that they offer high dividend yields. A dividend is a distribution of profits that are paid out to shareholders. And, because REITs must distribute at least 90% of their taxable income to shareholders each year, they offer some of the highest
dividend yields in the market. For example, the average yield for REITS was approximately 2.9% in 2021. That is nearly double the 1.3% average yield of stocks in the S&P 500.
Another benefit of investing in REITs is that they are a relatively low-risk investment. This is because REITs are required by law to diversify their holdings. This means that they cannot put all of their eggs in one basket, so to speak. To reduce risk, they must spread their investments out over multiple properties and sectors. This diversification helps protect investors from losses if one particular property or sector were to experience a downturn.
Deciding if REITs are Right for Your Portfolio
So, now that you know what REITs are and some of the benefits of investing in them, you may be wondering if they are still a good investment. As always, the answer to this question depends on your individual investment goals and objectives.
However, at MRA Capital Partners, we believe that REITs can be a great addition to any portfolio. They offer high dividend yields and relatively low risk, making them an excellent option for income-seeking investors. So, if you are looking for an investment that can provide you with consistent income, REITs may be the right choice for your portfolio.
Finding Opportunity. Delivering Res
MRA Capital Partners offers real estate investment strategies focused on maximizing the internal rate of return through favorable deal structures and the pursuit of non-correlated investment returns. Learn more about our investment strategies by visiting us online. Also, sign up to join MRA Capital Partners’ preferred investor network to learn more about our upcoming unique investment opportunities.