Real estate investment trusts (REITs) allow investors to participate in the growth of real estate, one of the most important sectors of the economy. According to the National Association of Real Estate Investment Trusts (NAREIT):
“REITs invest in the majority of real estate property types, including offices, apartment buildings, warehouses, retail centers, medical facilities, data centers, cell towers, infrastructure and hotels.”
Exchange-traded funds (ETFs) that focus on REITs offer the benefit of greater liquidity than investing in direct real estate. In addition, investors do not have to worry about various costs and legal issues (for example, related to mortgages, estate agents or tenants) that might come with being a property owner.
PGIM, the investment management business of Prudential Financial, highlights that in Q2:
“The best performers during the quarter were self storage and mall companies. Self-storage had a…