Real Estate Investment Trusts in the US - Market Research Report

Mutual benefit: A rebound in macroeconomic fundamentals will revitalize commercial real estate

This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.

Real estate investment trusts (REITs) are companies that invest in both commercial and residential income-generating real estate and distribute at least 90.0% of their taxable income to shareholders. In the past five years, the industry expanded significantly as a result of rising property values and increasing investment by institutional investors in the recent years. In light of a burgeoning property market and historically low interest rates, investors ranging between hedge funds and university endowments have invested in REITs due to their highly liquid, income-generating characteristics. More recently, the fears of inflation and rising interest rates are negatively affecting the underlying assets invested by REITs. In the past five years, industry revenue dropped at a CAGR of 0.1% to $232.7 billion, including a 3.4% drop in 2023 alone, when profit margins will drop to 23.5%. This industry comprises legal entities that are categorized as real estate investment trusts (REITs). REITs, such as mutual funds, use the pooled capital of many investors to directly invest in income-yielding properties. To qualify as a REIT, a company or trust must distribute at least 90.0% of their taxable income to shareholders annually. Income is largely generated from rent, interest and capital gains.