This is the second article in our series about ways to invest in real estate. In the overview article, we described nine different options for real estate investors. Direct investing in real estate—real property—is the gold standard. Adding real property to your investment portfolio provides a source of income and capital gains separate from more conventional assets … [Read more...] about REITs vs Direct Investing in Real Estate
Weyerhaeuser Timber REIT
Overview Weyerhaeuser Company (NYSE: WY) began operations in 1900. It is an equity timber REIT and one of the world’s main private owners of timberland. As of February 2019, Weyerhaeuser was the 15th largest REIT in the FTSE Nareit All REITs Index with a market capitalization above $19 billion. Weyerhaeuser manages its timberlands on a sustainable basis, with an eye toward … [Read more...] about Weyerhaeuser Timber REIT
The Nine Ways to Invest in Real Estate
Sensible investors know that portfolios benefit from holding a wide variety of asset types because diversification lowers risk. Many experts believe that portfolios should hold up to 20% of their assets in real estate—distinct from ownership of your own home. That begs the question — how should you invest in real estate? In this overview, we’ll describe your options for … [Read more...] about The Nine Ways to Invest in Real Estate
REIT Net Asset Value
One of the most important questions facing prospective REIT investors is whether the units are fairly priced. REITs present special challenges in this regard compared to regular corporations. That’s because REITs are essentially a collection of real estate properties that throw off rental income, making them closer to bond mutual funds than to stock funds. But bond values are … [Read more...] about REIT Net Asset Value
REIT Leverage Metrics
The extent to which a REIT uses debt efficiently is a key factor when investors analyze risk/reward tradeoffs. Debt used wisely increases returns and helps boost growth. Underutilize debt and a REIT will fail to maximize its returns and growth potential. Overutilize debt and a REIT risks a reduced credit rating, thereby increasing the cost of capital and the risk insolvency. In … [Read more...] about REIT Leverage Metrics