Additional Key Messages by Audience

Investors 

Feeling informed about REIT investment(s) and confident that their investments are growing.

Additional key message: 

REITs comprise 97 percent of real estate sector in the stock market.

Policymakers

Knowing exactly what REITs do, how they produce income, and—most important—that REITs continue to be crucial contributors to the economy.

Additional key messages:

  • REITs are an important part of the economy, investors’ portfolios and local communities.
  • Taken individually, a single REIT-owned property can change the entire complexion of a neighborhood.
  • When viewed as an entire industry, REITs significantly contribute to the local tax base, job market and business community.
  • REITs’ income is derived from rents paid to the owners of commercial properties whose tenants often sign leases for long periods of time, or from interest payments from the financing of those properties.

General Public/Media 

Understanding why REITs are worthy investments and how REITs positively contribute to society.

Additional key message: 

REITs comprise 97 percent of the real estate sector in the stock market.

Analysts

Receiving clear information to be able to understand and predict the future activity of the GICS sector.

Additional key messages:

  • REITs are increasingly a key aspect of investment portfolios and retirement savings.
  • Like other companies, the REIT industry uses net income as defined under Generally Accepted Accounting Principles (GAAP) as the primary operating performance measure. Additionally, the REIT industry uses funds from operations (FFO), a supplemental measure of earnings generated by a REIT.
  • Growth in REIT earnings have been typically generated by higher revenues, lower costs and new business opportunities.

Global markets

Spreading the REIT regime around the world, moving capital to foreign countries by investing in foreign REITs, creating an environment for foreign capital to flow into U.S. REITs.

Additional key messages:

  • Nareit has played an active role in the international expansion of the REIT industry.
  • REITs have the potential to be a crucial part of a country’s economy, investors’ portfolio and local communities.
  • Research done by the investment consulting firm Wilshire Associates showed that an allocation to global listed real estate improved the returns of a diversified investment portfolio.