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Portfolios 407: Real Estate Investment Trusts (REITs)

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1.
If you want to invest in a REIT currently and want to earn high dividends, you might consult the NAREIT Website.
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True. NAREIT's Website reports current returns on REITs.
2.
A real estate investment trust is most likely to invest in _______.
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Factory outlet malls. About one fifth invest in retail enterprises, including shopping centers and factory outlet malls. Lower numbers of REITS also invest in many other different types of real estate, such as residential developments, hotels and resorts, self-storage businesses, and health-care facilities.
3.
One risk of holding a lot of mortgage loans in a REIT is that _______ can affect their performance.
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Fluctuating interest rates. Changing interest rates on mortgage loans can affect performance negatively.
4.
One disadvantage of investing in a real estate investment trust is ______.
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Low returns due to decreased mortgage interest rates. REITs that invest in mortgage loans can post poor performances following drops in interest rates.
5.
A major difference between a REIT and a real estate limited partnership is that _______.
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A REIT is governed by an elected board of directors. A real estate limited partnership, on the other hand, is led by a general manager, who sometimes cannot be easily removed by investors.