Summary
- Who would have ever imagined that Average Joe or Jane could invest in all of these various property sectors?
- From a tax perspective, it's important to recognize that racking is considered "real property," so the depreciation is much longer compared with "personal property."
- So while many think about Iron Mountain for its thousands and thousands of boxes, the company has a much larger strategy that is more defined by its highly diversified business model.
- This idea was discussed in more depth with members of my private investing community, Rhino Real Estate Advisors. Get started today »
One of the exciting things about investing in REITs is that they come in all shapes and sizes (just like boxes).
For example, you have the primary “food groups” like apartments, warehouses, retail, and healthcare – and the specialty categories like self-storage, net lease, prisons, cell towers, data centers, and hotels.
More recently, even more specialized REITs have entered REIT-dom, such CorEnergy (COR) and Hannon Armstrong (HASI) – both energy-related - and Uniti Group (UNIT) and Landmark Infrastructure (LMRK) – both infrastructure-related.
Who would have ever imagined that Average Joe or Jane could invest in all of these various property sectors? But thanks to the REIT laws, a growing number of new entrants has propelled growth of over 200 REITs (in the U.S) with a combined market capitalization of over $1.1 billion (according to NAREIT).
REITs of all types collectively own more than $3 trillion in gross assets across the U.S., with stock-exchange listed REITs owning approximately $2 trillion in assets. In addition, more than 80 million Americans invest in REIT stocks through their 401(K) and other investment funds (I am writing a REITs and Retirement article later this week).
