标题: [讨论] REIT-Picking the Right REIT（ZZ） [打印本页] 作者: 读读书 时间: 2014-10-4 13:34 标题: REIT-Picking the Right REIT（ZZ）
Picking the Right REIT
As with any investment, you should do your homework before deciding upon which REIT to purchase. There are some obvious signs you should look at before making the decision:
1. Management
It's always important when buying into a trust or managed pool of assets to understand and know the track record of the managers and their team. Profitability and asset appreciation are closely associated to the manager's ability to pick the right investments and decide upon the best strategies. When choosing what REIT to invest in, make sure you know the management team and their track record. Check to see how they are compensated. If it's based upon performance, chances are that they are looking out for your best interests as well.
2. Diversification
REITs are trusts focused upon the ownership of property. As real estate markets fluctuate by location and property type, it's crucial that the REIT you decide to buy is properly diversified. If the REIT is heavily invested in commercial real estate and there is a drop in occupancy rates, then you will experience major problems. Diversification also means the trust has sufficient access to capital to fund future growth initiatives and properly leverage itself for the increased returns.
3. Earnings
The final item that you should consider before buying into a specific REIT is its funds from operations and cash available for distribution. These numbers are important as they measure the overall performance of the REIT, which in turn translates to the money being transferred to investors. Be careful that you don't use the regular income numbers generated by the REIT as they will include any property depreciation and thus alter the numbers. These numbers are only useful if you have already looked carefully at the other two signs, since it's possible that the REIT may be experiencing anomalous returns due to real estate market conditions or management's luck in picking investments.
Conclusion
With so many different ways to invest your money, it's important that any decision you make is well informed. This applies to stocks, bonds, mutual funds, REITs, or any other investment. Nevertheless, REITs have some interesting features that might make a good fit in your portfolio. Hopefully, this article has given you some insight into this unique type of security and expanded your investment opportunities.作者: vegetable8 时间: 2014-10-4 14:09
